Can I afford to Job Share?

C

casper4

Registered User
Messages
17
AGE: 36

SPOUSE AGE: 39

ANNUAL INCOME ME: 3000pm
I get 100pm towards car expense from work also

SPOUSE INCOME: 3100pm

TYPE OF EMPLOYMENT: Me: public sector spouse: private sector

Pension: me public sector, spouse PRSA pays in 525pm

Childcare of 400pm
Sky package basic one of 20 euro pm
Petrol/car insurance 150pm
ESB 100 pm
Landline/broadband 100pm
Gas 100pm
Groceries 800pm
Mobile phone I tend to txt only 20pm
Socialising 500pm
Health insurance 100pm
life assurance/home insurance 100pm
Savings:
Saving credit union 160pm
Savings Irish Life in 5 yr plan which will matyre in June 2012 at 315pm
Mortgage:
Mortgage of 1157pm with AIB at variable rate


ROUGH ESTIMATE VALUE OF HOME: 300,000

MORTGAGE: 270,000

Car Loan with AIB of 17,000 at 330 pm at 8% over 5 yrs

We have no other loans.


Investment property:
190,000 interest only mortgage
we have an interest only mortgage which is covered by rent,mortgage is 650pm rent is same

Children: a boy who is 16months old

My question/area of concern:

Can I afford to go jobsharing? It will half my salary so will be on a salary of 30,000 a year but I hate working fulltime and want to spend more time with my son.My childcare is 400pm at moment but will go to 200pm if I jobshare.My car expenses are quite low as we both live really near work and sometimes walk to work.
Also does anyone know can my husband then take my tax free allowance?
 
What else do you need to know? I have included everything I can think of....am new to this so apologies but I have used other threads as templates
 
Hi Casper,

Can you provide a breakdown of your monthly income after tax, pension levy, income levy etc.?

Also, your grocery expenditure seems quite low for a family of three! Is this supposed to be €400 pm (€100 per week)? What about miscellaneous expenditure like smoking, socialising etc.? These are the costs I think Cancan was referring too, as it is these types of outgoings that will inform whether you can afford a 50% reduction in your income.

Re: your tax free allowance. If you drop to €30,000 income, you should be able to transfer the residual €6,400 to your husband to be taxed at 20%. See this link for more information: http://www.revenue.ie/en/tax/it/leaflets/it2.html#section4
 
Hi Caspar

Based on the numbers you have provided, your current monthly income is €6,100 and outgoings are €4,877. That leaves a surplus of over €1,200 per month for stuff you haven't accounted for in your outline above.

If you got job sharing, your monthly income will be approx. €4,600 and outgoings €4,677 (€4,877 - €200 reduction in childcare costs). While it is manageable, you'll be losing a surplus you have invariably gotten used to having!

Try doing up a monthly budget and account for every penny that gets spent. That'll help you identify where you could cut back, and perhaps figure out where that extra €1,200 is currently going!!
 
You'd want to be pretty confident is the security of your husband's employment to go job share at the moment. In the event of him losing his job you may no be able to go back full-time. Your phone/broadband looks high as there are decent sub €60 packages available. As you say your childcare costs would be reduced. If you have two cars you could get rid of one, particularly as walking is an option. I suspect you could find savings in your socialising and groceries spend. Also as has been mentioned there would be a tax benefit from transferring part of your cut-off allowance. I suspect it's entirely doable and that it would improve the quality of life for your family but it might be more prudent at this time to reduce your working week (maybe go 3 day week) through parental leave; that way you can see if it suits you and your pocket.
 
I think its too tight to take the risk. Especially as taxes go up further.

Does your "investment" property mortgage switch from interest only at any point? How do you intend to pay back the capital to the bank? You are making a massive yield of 0% and have negative capital appreciation I assume so what are you plans on repayment?
 
You must log in or register to reply here.
Back
Top