Smart ways to live on one income with a baby

HAVING a baby is one of the most expensive life stages, yet many of us find ourselves living on one household income rather than two. So how is it done?

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HAVING a baby is one of the most expensive life stages, yet many of us find ourselves living on one household income rather than two. So how is it done?

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“I was the main earner, so for me to stop work was a big deal,” reveals Becky Goddard-Hill, author of How to Afford Time Off with Your Baby . Here are her tips for downsizing from two incomes to one.

Take a mortgage break

On finding out she was pregnant, the first thing Becky and her husband did was reduce the amount they paid towards their home loan in the short-term. “We went interest only for a while,” she says, adding that they also rang their bank and asked to take a break from paying their home loan altogether for six months.“When they said OK, I was shocked,” she says.

Approach work differently

Becky managed to take six years off work as a social worker teaching child development, but still helped support her family by taking on freelance work from her company when her children were young, along with learning a new skill. “I joined a franchise teaching baby sign language classes to groups of mums,” she says, adding that she earned around $150 dollars for one morning a week. Even better, she paid no childcare, met other mums and interacted with her baby.

Check your benefits

While she thought about taking on part-time work when her children were small, Becky advises other mums who receive Government benefits to call Centrelink first to check if the extra income will result in any reduction in payments, which may be in line with the hours you’re considering. “In this instance, it’s better to call up rather than look on-line,” she says. “It’s a minefield - very confusing. By calling up you can ask them hypothetical questions and I found out that working part-time wouldn’t have been worth it financially.”

Be open about your finances

While you might not usually discuss your bank balance, talking about your reduced income with those close to you can also help. “We’ve been open with friends and family and told them that we wouldn’t have much money for a while,” says Becky.“It meant they felt more able to offer us second-hand baby clothes or a nursing chair they’d finished with,” she says, adding that they also asked parents-in-law to use a monthly bank deposit for their grandchildren to pay for nappies and baby products. “We told them we’d put it back when we were working again, and they were really happy to help.”

Have a swishing party

It might sound a little odd, but a ‘swishing party’ actually means meeting up witha group of friends and bringing along bags of clothes or toys from home to swap with each other. Choose a theme, such as baby clothes, kids' or women’s clothes, meet at someone’s house and get ready to stock your baby's nursery wardrobe, or replenish yours! “It’s fun and youget something that’s completely new to you,” says Becky.

Get the gifts you want

While you might not tell your family what you want for your birthday, consider telling them what gifts to buy when your baby arrives. “Do ask for specifics –a car sunshade, expressing machine or baby monitors - otherwise nearly everyone buys clothes,” says Becky. When it comes to children’s birthdays, she advises asking grandparents to buy ‘experiences’, such as baby massage lessons or Kindermusik classes, as the memories will last longer than a plastic toy.

Care about car costs

While you might need a car more than ever once you have a baby, there are some vital ways to keep the costs down. Try and buy a car outright, rather than saddling yourself with costly monthly payments and remember that walking provides exercise while also helping to keep car maintenance costs downs.“Walk or cycle when you can and give your car a rest,” says Becky. “Your car will thank you in lower wear and tear repairs and in keeping petrol costs down.”

Share your skills

Swapping skills with other mums is a sure-fire way to make your household income go further. Becky says she’s gained baby food and even free counselling sessions by swapping her skills with mums of babies the same age. She suggests you save time and money on baby food by starting a 'puree club' "One of you does a big load of two purees each week, say bean and apricot,everyone else chooses different fruit or veg, and then you share them all out."

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