So you’ve worked out your spending plan, but things don’t add up. If there’s going to be less coming in than going out what should you do? Firstly, don’t panic.
Assuming you have claimed all your entitlements, investigate if there are other ways you can cut back your expenses. Can you save on ‘non-essential’ spending such as meals out, your cleaner, holidays and gifts? Sit down together and discuss your spending priorities – what one of you believes is essential spending the other may class as a luxury. Plan together how you’ll tackle this.
If the money gap is only short-term – say 3-6 months – do you have savings you could use? Or could you borrow money temporarily? If a loan is your only option, draw up a realistic plan to pay it back.
Whatever route you choose make sure you plan together. Don’t leave it to whoever is the maths boffin or has more time. It’s important to get this bit right from the start and to keep your plan under review.
“We didn’t really buy them Christmas and birthday present for the first few years as they were too young to realize. We ask grandparents to give them money for birthdays to go towards classes and activities. We don’t really buy many toys as they get given them at birthdays and as Christmas presents.” – James, Devon.