Newly single parent struggling financially

ailbhe

Registered User
Messages
481
Age:
26

Monthly Net income from employment or profession:
€1950
Monthly FIS Payment:
€160
Child Benefit:
€166

Total monthly income:
€2276

Monthly fixed outgoings:
ESB: €30
Phone: €50
Sky: €22
Insurance: €30
Creche: €325
Rent: €700
Loan Repayment (15k over 5 years taken out 3 months ago) €321
Credit card (balance is 300) €30

Total fixed outgoings : €1508

Balance left each month €770 for food, heating(oil), petrol, tax and clothes for myself and my daughter.


Type of employment:
private sector

Expenditure pattern:
just breaking even

Savings and investments:
none
Do you have a pension scheme?
no.

Do you own any investment or other property?
No.

Ages of children:
6


What specific question do you have or what issues are of concern to you?

It seems like almost €200 per week should be enough to live off but it doesn't appear to be. I am starting a spending diary but I don't really see where else I can cut back.
I shop in Aldi, buy as little as possible etc.
But it seems every month my wages are not going as far and I don't want to end up in the red every month which is the way things are going.

Any furthur areas i can cut back on? I need my phone (don't have a landline) and while Chorus is cheaper it is not available in my area so I have the minimum Sky package. I cannot apply for a council house as my ex and i are selling our current house (bought 2 years ago) and we will be fortunate to break even if it sells. he is currently living there and paying all associated costs (mortgage, insurance, life cover etc) while I am renting privately.
Ex is not my daughters biological dad so soes not pay maintenance etc. Her biological father is not involved and never has been.

I have my medical card and FIS.
 
ESB: €30
Is this an average monthly figure for the year or just what it is now before the winter starts?
Phone: €50
Are you on the "best" package for your specific needs? See www.callcosts.ie for example.
Sky: €22
Get rid of this - it's a luxury.
Insurance: €30
What insurance? If contents then is this (€360 p.a.) the best deal on offer? I am paying significantly less than that for home and contents insurance for example.
Creche: €325
Rent: €700
Have you claimed the rented accommodation tax credit? And any other common tax credits open to you?
Loan Repayment (15k over 5 years taken out 3 months ago) €321
What was this taken out for?
Credit card (balance is 300) €30
Do you habitually have a CC balance outstanding? Obviously if your budget is tight then you should avoid living off high cost credit as well.
Do you own any investment or other property?
No.
You do according to your post above.
 
Is this an average monthly figure for the year or just what it is now before the winter starts?

It's been the figure for the last 3 months (which was when I moved in). in the old house the ESB was much higher. New house is smaller and we're not there as much, don't have as many gadgets etc. I would expect it to go up a bit but not much more than that.

Are you on the "best" package for your specific needs? See www.callcosts.ie for example

I'm not sure. I'll check it out.

Sky €22 Get rid of this - it's a luxury.
It's really the only luxury I have. i got rid of broadband at home and it's only the most basic package, one room etc. I know I could get rid of it but we stay in a lot now and I would prefer to have ot for my sanity and my daughters.

What insurance?
Car insurance. €280 over 9 months. Work in this sector so i know it is the best I can get. i have no contents insurance.

Have you claimed the rented accommodation tax credit? And any other common tax credits open to you?

I have and my one parent family tax allowance. I pay no PAYE, just PRSI.

What was this taken out for?(loan)
IVF. Ex has a loan for the same amount. It didn't work but the bills remain.


Do you habitually have a CC balance outstanding? Obviously if your budget is tight then you should avoid living off high cost credit as well.

I pay it off in full when I get paid but usually end up having to put something on it the week or so before I get paid again.
This is what i am trying to avoid.

You do according to your post above(investment property)

OS mortgage is €290000
Property is valued at €292000.

i wouldn't have classed it as an investment but fair enough. My name is on the mortgage and the deeds and that is just until we sell it. I have no real role in it, not paying mortgage or living in it etc.
 
Could you do without the car & cycle/walk/bus to work?
Ask your boss for a rise?
Look for another part-time job (especially if you could find someone to take care of your daughter for a few hours)
Take in students (you'll need to have good access to a city for this) or a lodger.
Is there anyone could mind your daughter after school...often cheaper than creche fees
 
Your daughter's biological father should be paying something towards his child's expenses, whether he is involved in her life or not.

I would agree that Sky is a luxury. We stay in a lot too, have 2 kids and no Sky and are virtually never bored :). Far better to put the money towards broadband!

The childcare fees seem reasonable - I assume this is after school care.

Is the phone a mobile or landline? If a mobile, you can cut this down a lot. Track down the cheapest package and don't exceed the usage limits. Text and call less. If a landline, then you can get broadband and all your national calls for 50 a month.

Do you actually need a car? Work out how much taking the occasional taxi would cost instead. I expect the car eats up quite a bit of your budget.

Do keep a detailed spending diary and see what that tells you.
 
Could you do without the car & cycle/walk/bus to work?
Ask your boss for a rise?
Look for another part-time job (especially if you could find someone to take care of your daughter for a few hours)
Take in students (you'll need to have good access to a city for this) or a lodger.
Is there anyone could mind your daughter after school...often cheaper than creche fees


I know everyone is going to give out and say I am making excuses but here we go lol

Live in a small town, have been walking to work as it is nearby but shops etc are furthur and pretty much no public transport so have to use the car then. I don't spend a huge amount on petrol. If I fill the tank (1.6l car) it costs about €50 and that has often done me for 6 weeks if I am not travelling home(where I am from originally and where my family are).

Asked for a payrise. Was told "do you not know there's a recession on"

Taking in students. no can do. No college nearby and I only have a small 2 bed townhouse.

I could possibly find someone cheaper to mind my daughter but the creche is beside the school so I can drop her there and she is walked to and from school and they take her for half days, days off and suring the summer. She has been there for 3 years and is very settled. Also, I don't think I would get care for her much cheaper than 75 per week from 8.45am to 9.15am and from 2pm to 5.45pm.
I considered moving her from creche when she was starting school but was quoted €12 per afternoon, had to provide food (when she gets her dinner and snacks in creche) and I extra if i wanted her dropped and collected to school (approx €2 extra per day).
Worked out marginally cheaper but when you factor in food and snacks, not really.

As for taking on extra work, overtime is non existant where I work. I am trained in bar work also and I did consider taking on weekends but babysitters charge more than I earn, I have no family nearby and ex was not willing to sacrifice his social life. He works in retail and refuses to be tied to specific evenings in which he takes her overnight so unless I take a job I can do from home I'm a bit stuck.


On the bio father note, if i knew where he was I would try to get him to pay maintenance but he moved and changed his phone numbers while I was pregnant and hasn't been heard from since.
 
I know everyone is going to give out and say I am making excuses but here we go
People don't generally "give out" in such situations. They just respond to requests for advice/comment. Sometimes the person who asks doesn't like what s/he hears back but that doesn't necessarily mean that it's wrong or bad advice.
 
Taking in students. no can do. No college nearby and I only have a small 2 bed townhouse.
And presumably sub-letting would probably not be allowed? You are renting aren't you?

If/when you have a spending diary covering a few weeks perhaps you could post some details? Remember that you need to be very precise with this covering all expenditure including day to day expenses, weekly/monthly household expenses, unplanned expenses etc. Also - the usual stuff applies here - can you cut down on daily expenditure by, say, bringing a packed lunch etc. instead of buying one and so on...
 
And presumably sub-letting would probably not be allowed? You are renting aren't you?

If/when you have a spending diary covering a few weeks perhaps you could post some details? Remember that you need to be very precise with this covering all expenditure including day to day expenses, weekly/monthly household expenses, unplanned expenses etc. Also - the usual stuff applies here - can you cut down on daily expenditure by, say, bringing a packed lunch etc. instead of buying one and so on...


Good point about the sub letting. Landlord likes me and probably wouldn't care if I let a room so long as the rent was paid but it isn't an option anyway. Lease is up in Dec and I am going to try and find somewhere cheaper.
Rents have dropped down here and for 700pm I could now get a 3 bed semi instead of a 2 bed duplex.
I will see in Dec if they will drop the rent, if not I will move if need be. Don't necessarily want a bigger house (more expensive to run) but i will try and find a cheaper place if possible.

i will also keep that spending diary. Even a euro here and there adds up so when my budget is as restricted as it currently is I need to know where every euro goes.

Thanks all. Plan is to put about 80 pm into a "rainy day" fund for emergencies leaving approx 160 pw for everything else. I'm going to really cut back when doing the weekly shopping, make a list and stick to it. Will start bringing lunch to work and generally cut my cloth to suit my means.
 
You don't seem to be making excuses at all ailbhe, and you do seem to take a clear headed sensible attitude to your finances, so no worries at all about giving out! A few euro here and there will make all the difference.

Have you factored road tax, NCT, service and tyres into your car calculations?
 
Hi Ailbhe

Would you think of trading your car in for one with a smaller engine? 1.6L is quite big. If you got a 1L it would save you in petrol, tax and insurance. Shop around every year for the best insurance deal. I have a 1L and the insurance isn't expensive.

Scotsgirl
 
I will see in Dec if they will drop the rent, if not I will move if need be. Don't necessarily want a bigger house (more expensive to run) but i will try and find a cheaper place if possible.
Similarl(ly sized) place for cheaper sounds like the best idea to me.
i will also keep that spending diary.
Do you mean that you aren't already doing this? Your original post suggested that you were. You need to be very rigorous and systematic about this if you want to do it properly.
Thanks all. Plan is to put about 80 pm into a "rainy day" fund for emergencies leaving approx 160 pw for everything else.
You need to clear your debts first before you start saving.
I'm going to really cut back when doing the weekly shopping, make a list and stick to it. Will start bringing lunch to work and generally cut my cloth to suit my means.
Sounds like you may not be economising to the full extent possible already. No offence but some of these things are obvious and if you are not doing them already then I suspect that you may not really be serious about dealing with your financial situation. Some people may consider this "giving out" but I consider it an objective and probably accurate assessment given what you have posted to date.
 
Is there any chance you would qualify for rental assistance as a low-paid, single mother?

Another thing, €50 a month seems quite high. I assume you're with Eircom? Is there any way you can get rid of the phone and stick with your mobile?
You need to clear your debts first before you start saving.
If she already had savings, I would agree with this advice. However, she doesn't. As it stands, if there was an emergency for money, she's at the mercy of begging to friends and family or the banks.

I'd say try and stash €2-3k as an emergency fund. After she has that, she can concentrate on clearing her debts.
 
One more thing. Have you been on this site? I personally tried this challenge a few weeks back. A €50 budget for food is realistic for two people. But you also have to include non-food essentials like bogroll, washing powder, etc.
 
Have you factored road tax, NCT, service and tyres into your car calculations

Not as of yet. Car was Nct'd and taxed last month for the year. I will need to get it serviced in a month or two so I am putting some money aside for that already.

Would you think of trading your car in for one with a smaller engine? 1.6L is quite big

I would love to do that but without putting money to another car I don't see how I can. A garage wouldn't "swap"one car for another would they?


Do you mean that you aren't already doing this? Your original post suggested that you were. You need to be very rigorous and systematic about this if you want to do it properly.Sounds like you may not be economising to the full extent possible already. No offence but some of these things are obvious and if you are not doing them already then I suspect that you may not really be serious about dealing with your financial situation. Some people may consider this "giving out" but I consider it an objective and probably accurate assessment given what you have posted to date.

I suppose this is the first month I've felt the pinch since the split in June. I never had to economise to the extent I need to now. Ex had a fairly healthy salary and we were able to afford bills and luxuries too.
It only affected me this month as I had a fair idea of what sort of budget I should have been sticking to, and was roughly aware of what I should be spending on the weekly shop, bills and so on. But this month I realised that i just got paid and it is pretty much gone already and I really need to sort this out.
I guess I know now that "roughly" knowing what I'm spending isn't good enough and if I continue the way I was that this time 6 months I will have 6k on my credit card, be overdrawn etc and be really struggling. I want to put a halt to it before it starts. Which is why I am posting here.
 
Is there any chance you would qualify for rental assistance as a low-paid, single mother?

Another thing, €50 a month seems quite high. I assume you're with Eircom? Is there any way you can get rid of the phone and stick with your mobile?


that is my mobile. it is billpay with o2 and my contract just ended so I am going to change to another plan (minimum cost) and just cut back on calls etc. I have no landline.



Is there any way of tracking down biological father and taking him to court for maintenance?

Tried when the child was born but no joy. He was talking of moving abroad so perhaps he did. All of our mutual friends at the time (college) didn't hear from him and i tried our employer at the time(we worked together) but they couldn't give info obviously.

When you're 19 you think that seeing someone every day and knowing their mates is enough. It's only when they leave you realise you knew nothing about their "real" life (family, where they were from etc). A sufficient answer to "where are you from?" is "Dublin" :rolleyes: Silly me!
 
You didn't mention in your original post that you have a car loan, that's why I thought of you possibly downsizing your car. If you don't have a loan on it would you try to sell the car privately (doubt if a garage would trade 2nd hand for 2nd hand), and then buy an older car with a smaller engine?
 
And presumably sub-letting would probably not be allowed? You are renting aren't you?

Not all landlords would object to this. I had some tenants who were stretched and were thinking about moving....I suggested they think about getting someone else in & they did...all going fine again! LL's don't like to lose good tenants, epecially in the current market!

OP, you seem to be starting to cover most of the bases but watch for the little things that can really add up (morning coffee, weekly mags, getting the hair done, etc).

Good luck
 
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