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    Default Worrying about money while I'm on parental leave :-(

    I'm really worried that we're going to run out of money while I'm on parental leave :-( I'm taking 28 weeks off which is made up of 4 weeks annual leave and 18 weeks PPL, then 6 weeks with no income. After tax, PPL comes in at just over half of my ordinary income so it's a substantial drop in income.

    My big struggle is trying to figure out what to pay when, as at the moment we pay our bills, savings and car loan from my monthly pay, and mortgage, groceries, petrol and other day-to-day living expenses from hubby's pay. But obviously with my income being substantially reduced, it won't cover what it currently covers. On paper, we have enough money with our modest savings as long as we strictly stick to the budget (and there are some things i've included that aren't essentials so can be reduced or cut out like small amounts for entertainment and clothing if necessary), but it's so difficult with my income varying every month to figure out what expenses should be paid when to ensure we have enough money to get by.

    Also, I'm considering speaking to the bank and seeing if we can either reduce our mortgage payments by 50% for the whole time I'm on leave, that gives us an extra $500 per fortnight but also will add extra time onto the mortgage (we're about $12k ahead in payments so it won't increase it much) or whether to take a mortgage repayment holiday for the last 2 months which would give us an additional $1000 per fortnight for 3 fortnights (which is more than we'd need). Has anyone done either of these and have any advice / recommendations?

    I guess overall I'm just looking for some reassurance from people who have been in a position similar to mine... Since the age of 15 I haven't been without work so the thought of being out of work for 6 months really freaks me out. Things always seem to just work out for us but I'm scared our luck has run out. I haven't even really spent much time researching anything to do with birthing / pain management / early days with a baby coz I'm always looking up things about money instead, and bub is due in less than 5 weeks! I want to spend our first few weeks getting used to the new member of our family rather than worrying about money but I can't stop thinking about it :-(

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    Default Worrying about money while I'm on parental leave :-(

    Any chance you could refinance your mortgage? We spoke to our broker, refinanced our loan and are now $200 a week better off.

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    rainbow road is offline look at the stars, look how they shine for you
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    Write up a budget - a detailed budget, including spending money for yourselves and ALL bills including car rego, CTP etc. If you're not sure of amounts, look at your last bill, round it up and use that as a guide. Talk to electricity company about paying your bills weekly instead of quarterly. Often you end up in credit this way, and it saves the blow of a quarterly bill.

    Is it possible for the rest of your pregnancy, to save your income and try living completely off your DHs income? That might help ease you into it!

    No idea about the mortgage stuff though.

    But I find budgeting makes me feel much more in control so I highly recommend writing up a budget with EVERYTHING in it because seeing it on paper makes it easier to envisage.

    Good luck! Enjoy your bub xxx

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    Default Maternity leave

    Hi there firstly congrats! For myself I'm 6 days over and am awaiting on baby for any income as I only had 2 weeks leave from work which obviously ran out ages ago!! Just a quick mention about the bank, I'd highly encourage you to see if u can reduce payments or withhold, that's what we've done as there's no way we'd have the cash flow to manage. Also just a quick heads up if u aren't aware centrelink is currently advising a 4-6 week on payments to come through just to help you plan! Hope this helps you

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    Default Worrying about money while I'm on parental leave :-(

    Just a thought, but why change the mortgage payments? We are on a super low income but have alwAys paid more on our mortgage than required. This has given us a reasonable redraw. When the big bills come in, if there isn't enough in the budget, I use redraw (strictly things like insurance and rego).

    We live off what we have. If there was more, I'm sure we would spend it. As it is, going into the mortgage means we don't spend it and its like its not there.

    We have a much simpler lifestyle with children (by choice).

    I have no paid maternity leave, dh on average income. I can never understand how people earning a lot more than us get so stressed by the money, but maybe they just spend more.

    Stick to your budget, and keep up the mortgage. That's my 2cents anyway.

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    Default Worrying about money while I'm on parental leave :-(

    Thanks for the tips everyone, on my phone so can't see to personally reply, but will do my best :-)

    I have a really comprehensive budget which even allocates money to separate accounts for things like hubby's haircuts and medical expenses (we have no ongoing medical expenses but I know how often babies can get sick!) and according to that on paper (or my excel spreadsheet lol), we'll have enough money.

    I already pay our quarterly bills like water and electricity each month, and I over-pay them so our account is pretty much always in credit. And we have automatic transfers setup each month to put money away into separate accounts for our car rego.

    I called the bank today and basically it seems like our best option is to use the money we have available to redraw. It sounded like it was going to be near impossible to reduce the repayment, and we could have a 3 month break from the repayments but we don't need that much of a reduction so would probably put us in a worse financial position long-term. Redraw is available instantly online so it's not something we have to apply for, so we can access it we need to, and if we're going ok financially, then it's all good!

    Feeling much more positive about money today :-D

    ETA - belibean, we really need to learn to live within our means. We have a car loan that is a killer, $800 a month, and without that we'd be MUCH better of financially. But unfortunately we bought the car while we were both working full-time but still living with our parents, so had no idea of the actual cost of living when you're living out of home!
    Last edited by JR03; 16-01-2013 at 18:58.

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    Default Worrying about money while I'm on parental leave :-(

    Quote Originally Posted by JR03 View Post
    Thanks for the tips everyone, on my phone so can't see to personally reply, but will do my best :-)

    I have a really comprehensive budget which even allocates money to separate accounts for things like hubby's haircuts and medical expenses (we have no ongoing medical expenses but I know how often babies can get sick!) and according to that on paper (or my excel spreadsheet lol), we'll have enough money.

    I already pay our quarterly bills like water and electricity each month, and I over-pay them so our account is pretty much always in credit. And we have automatic transfers setup each month to put money away into separate accounts for our car rego.

    I called the bank today and basically it seems like our best option is to use the money we have available to redraw. It sounded like it was going to be near impossible to reduce the repayment, and we could have a 3 month break from the repayments but we don't need that much of a reduction so would probably put us in a worse financial position long-term. Redraw is available instantly online so it's not something we have to apply for, so we can access it we need to, and if we're going ok financially, then it's all good!

    Feeling much more positive about money today :-D

    ETA - belibean, we really need to learn to live within our means. We have a car loan that is a killer, $800 a month, and without that we'd be MUCH better of financially. But unfortunately we bought the car while we were both working full-time but still living with our parents, so had no idea of the actual cost of living when you're living out of home!
    You sound well organised much more so than me. Money is always a stressful thing but its amazing how we manage.

    I am on maternity leave with my second and I realised how quickly time has gone with my first so I'm enjoying things a lot more this time and worrying a lot less about money (and we have about half the budget we had with the first). They are only small for such a short time I have decided not to go back to work and just pick up a few hours a week for a top up.

    I am going to steal some of your budgeting tips

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    Quote Originally Posted by Lulubellesmumma View Post
    Hi there firstly congrats! For myself I'm 6 days over and am awaiting on baby for any income as I only had 2 weeks leave from work which obviously ran out ages ago!! Just a quick mention about the bank, I'd highly encourage you to see if u can reduce payments or withhold, that's what we've done as there's no way we'd have the cash flow to manage. Also just a quick heads up if u aren't aware centrelink is currently advising a 4-6 week on payments to come through just to help you plan! Hope this helps you
    We have been waiting over 4 weeks and still nothing from centrelink...

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    Default Worrying about money while I'm on parental leave :-(

    Quote Originally Posted by thepouts View Post
    We have been waiting over 4 weeks and still nothing from centrelink...
    I handed our PPL forms in to centrelink on Christmas Eve and its my understanding that my work has it waiting for our next pay... That's for PPL for bereavement... I can't imagine it would be different processing times to the normal PPL...?


 

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