Healthcare: £25 (vastly inflated because of my end-of-pregnancy Gaviscon consumption. Usually a few quid on OTC things like ibuprofen or hayfever medicine.)- £10 max
We both need new glasses - will have to work out how to do this. I have ordered glasses online in the past and it didn't go well but they were just backups.
Regarding glasses - is there any chance that your husband's work will cover this for him at least? I get free glasses or a hefty discount as I have an office-based job and screen-time damages your eyes, it's an occupational health thing. You're entitled if you work with Display Screen Equipment.
This has more information on the regulation:
https://www.healthandsafetyatwork.com/health/employers-obligations-sight-tests-dse-users
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Regarding the new budget, the extreme-expense slashing has already been done (thanks
@SpreadsheetMan), but I've put together my own version that's a bit milder below. I trust you on things you say are non-negotiable, and have tried to make this 'austerity budget' a sustainable one for your sanity/health over the longer term:
Fixed:
Gas and electric: £64
Internet: £18.99
Contents insurance: £48
My phone: £6.50
Husband’s phone: £6.50
Charity: £100
Personal spending: £200 total (£100 each)
London Review of Books: £8
Variable:Food: £290 (I've read your other stuff, this seems like a sane amount for a young couple with a newborn)
Booze: £10 (pfft, you can get 2 bottles of wine for this per month.)
Date night: £5.82 (I have put this back in, as I'd personally never surrender this, but your tolerance is your own. However, I'd consider it an investment in the health of the relationship.)
Healthcare: £10
Travel: £50 (it sounds like cycling is out for you, but try and reclaim work expenses where possible)
Holidays: £50 (visiting family and friends is still pretty important for your sanity)
Baby items: £100 (hopefully the value can be reduced)
Cash: £36 (no idea what this is for, so no idea if it can be slashed)
Misc: £75 (no idea what this is for, so no idea if it can be slashed)
TOTAL =
£1041.81, a saving of £472.82pm, which gives an extra stash of £11.3k over 2 years yielded from cost savings.
This excludes anything you can additionally raise by increasing your income. With a move in mind, when thinking about increasing your income, I'd make sure you have at least a couple of eggs in your basket that are location independent to smooth over the transition time with the move, which may cause bumpiness if any of your current income is based on being in the local area.
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Now, I'm also quite interested in the long-term plan - i.e. the two year horizon.
Many others on this thread have pointed out what is the most useful thing for you, with the highest potential for reward, which is an increase in income from either yourself or your husband. But I'm interested in projecting in what your monthly expenses are likely to look like in the future.
If the free house through work is lost, you have a large cost gap to fill with 3 of you. I'm assuming you'll be more location independent once his contract has finishes, which will help, so going north is a way to keep costs down. From my personal experience I'd be surprised if you got to rent anything 2 bed under £800pm in a useful city for work (e.g. Manchester) including bills (council tax, water) - but I'd love for some other homeowners of the same family size to chime in on this.
So it looks like in two years your ongoing expenses are likely to change to something that looks more like:
£1050pm +
£800pm
=> £1850pm.
at a bare minimum, which needs to be covered through either income or savings whilst Mr SLTD retrains.
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That's all my thoughts for the minute, but I'm happy to bat other ideas around and answer any questions!