This I don't get, two adults one income and three kids under 12 - what has it got to do with talking to anyone other than the parents?
So far on this thread you have not managed to confirm your actual salary, into your hand. That would be a good starting point. How about you fill out the money makeover template and you will be amazed at where savings can be made, another poster has already mentioned they are saving 1K a month more than you on a lessor salary.
Are you claiming back your medical expenses?
It is imperative that you save for a car.
I agree, it is the realisation that the car is 12 years old this year that has made me realise that something needs to change. The first post was done using the makeover template!
Actual salary: I have two figures for this on my P60, the salary for PAYE purposes, and the salary for USC purposes, do you know which is the 'real' one? AFAIK the one for PAYE purposes is the gross salary with the pension contributions removed as these aren't taxable.
The point about the two adults and three kids under 12 is that with that many people things come up unexpectedly. Last week two people had to go to the GP, and two people ended up in two different hospitals. I think it ended up costing about €120 in GP fees, parking, tolls (the two hospitals were Blanchardstown and Tallaght). This isn't resolved yet, DH is in hospital, so that's why I haven't replied before now.
As a comparison, I earn approx 8k less, but save 1k per month, just about.
I support a SAHM + 2 kids + mortgage + car.
That really is very good, want to tell me how you do it? No snark is intended, we really need to do something and any advice on how to do it is welcome!
I have children of a similar age who hear the word "no" a lot - it can be hard to say but I think I'm doing them a favour in the long run by not forking out for everything that takes their fancy. I know how quickly it all adds up - even a coffee break if we are in town costs a fortune when there are 5 of you.
I suspect that this is where a lot of your money is evaporating - little things like the cinema or coffee or pocket money, as well as bigger things like swimming lessons.
If your children are able to help with the budgeting then let them eg choose whether to go to the cinema or save for a bigger outing at a later date.
I'm afraid my kids hear 'no' a lot too! I'm trying to strike a balance between giving them the things I think will benefit them (swimming lessons, music, sports of some sort) and things they don't really need. One of the kids has had problems with bullying, which has manifested itself in exclusion from things like birthday parties, so I am reluctant to cut those out altogether. As well, DH has been ill quite a bit and they have been very good at doing things around the house and helping, so it seems wrong to punish them for that.
Do it. I started using a simple "envelope" budget nearly 2 years ago. The effect has been equivalent to a 10k raise. I went from living month-to-month to an average surplus of €435
without any conscious sacrifice.
I swear by
youneedabudget.com . I record purchases on the phone app, and it syncs them back to my budget. I never had the discipline to keep a notebook handy, but I'm rarely out without the phone!
(It's actually €435.04. The software remembers
.)
I have seen this recommended before. With 5 people involved it sounds like a good idea, I used to be able to keep a rough balance in my head when it was just me! I don't have a smart phone however, but I need a new phone.
Any advice is welcome, but I won't be able to do much until DH is out of hospital. I don't know how single parents manage, it's rather busy!