Dear Miss Lolly, I’m in a bit of a weird position and I don’t know who to ask for advice – an accountant, a financial advisor, someone I don’t know?! Hopefully you can help me? Thanks am a successful woman, I earn around £71,000 and salary sacrifice my pension; childcare vouchers, but I have a car and private health benefits My husband is self employed and earns around £8,000 as he primarily does the childcare We have 2 kids under 5 I want to know what my tipping points are as I want to be at home more but can’t work out the finances I need to bring home at least 2000 per month to cover direct debits, this doesn’t cover food or travel or anything nice! so how do I find out what salary/take home pay I need and are there benefits I’m entitled to and to what point would I not be entitled to anything. What would I actually get money wise- when you hit the 40% tax bracket what does this look like in take home pay? Are there any opportunities to use my husband’s allowances – I read somewhere it was changing next year So essentially I want to know where I can get this info from so I can make an informed decision about my future with my kids. Does this make sense? Any help, advice, or direction pointing I would be forever grateful for. Love your website too BTW! Alyson X
As promised here is response to your query as promised:
1)I think that the first thing that you need to do is to do a comprehensive budget planner. Don’t forget to include ad hoc spending, holidays, Christmas, birthdays etc. You can download a template from the www.misslolly.com
2)Once you have worked out your absolute minimum that you need to live the life you want, you can then gross this up by playing around with the http://www.thesalarycalculator.co.uk/ to work out what this would be gross.
3)Here is a link that will talk you through benefits and help you to calculate what you may be entitled to at different income rates http://www.turn2us.org.uk/benefits_search.asp The one that springs to mind is that you currently don’t qualify for child benefit but if you earn less than £50,000 you are able to claim full child benefit. Between £50K & £60K you are entitled to child benefit but on a sliding scale https://www.gov.uk/child-benefit