Squeeze panel: Stuart Kidman

Age: 27 Job: Sub-editor Salary: £20,000 per annum Married to Holly with one son

Stuart Kidman is 27 and from Banbury in Oxfordshire. He currently works as a sub-editor on a regional newspaper.

He is married to Holly (right), and they are both now the proud parents of William, who was born last October.

This month, Stuart will start on a new job and Holly will be back to work part-time after her maternity leave. This means their total salary will be lower, but they are thinking on how to adapt their budget and are happy to spend more time with their baby.

The month ahead will be a fresh start for us both. I begin my new job and Holly will be back to work, albeit part-time.

Our savings have now been almost completely used up, having supported us while Holly was on maternity leave

On the whole, reducing her hours means we take a hit in terms of our total salary, but the time she is able to spend with our son William will be more important.

The changes could not have come at a better time. Our savings have now been almost completely used up, having supported us while Holly was on maternity leave.

Thankfully I will soon receive the redundancy payment from my previous job, which is enough to replenish most of what we have spent.

We now have two cars again and will be placing William in nursery for a couple of days a week, so there are some additional costs to budget for in the months ahead.

I will need to re-examine our tax credits when we have both returned to work as the changes to our salaries will dictate how much of a rebate we get and the two of us will be drawing up a new monthly budget based on our new incomes.

This is our all-important strategy to staying in the black. We present ourselves with strict criteria when it comes to spending and separate our money out into several accounts. This means we can keep a careful eye on our outgoings, while knowing exactly how much we have to spend at any one time.

I'll probably start looking to sites like eBay to make a little bit extra here and there, but generally, from the beginning of June we should be back on an even keel.

For now, though we are looking forward to a short holiday, giving us just enough time to relax ahead of returning to work.

It was a relaxing Easter but we have a hectic schedule ahead of us.

In the coming weeks I will be taking redundancy from my existing job and starting a new role elsewhere, while Holly will hopefully be able to go back to work part-time.

My new job pays enough for us to justify her dropping her salary and paying for two days a week in nursery for our son, William. He is six months old already. Time flies.

We are about to go back to being a two-car family again, necessary due to the commuting distance for my new employment.

The savings I have been using to subsidise her statutory maternity payments are slowly dwindling.

I can see petrol starting to eat its way back into our monthly budget.

And coming up we have two birthdays, a wedding and William's Christening, so there is likely to be a fair bit of expense in the near future.

We're at the sharp end now of Holly's maternity leave and the savings I have been using to subsidise her statutory maternity payments are slowly dwindling.

We will come through her time off without dipping into debt, but we won't have much left and will need to start building it back up again.

Plus I've just had to buy a new washing machine, since the old one broke down this week.

Hopefully my redundancy package, which is still under negotiation, will replenish our safety net and maybe provide enough for us to treat ourselves in some way.

We are having a much-needed break in May so it could come in handy on holiday.

We will also see what the Chancellor's Budget holds for us, but since we don't drink (much) or smoke, I guess it's just the cars to worry about.

Some extra child benefit would be nice...

In my last update I wrote about the impending changes to my job and having to move to another building 25 miles away. This proposal was confirmed and I was interviewed for various jobs which I had expressed an interest in within the company.

The one which would have seen me stay put has been given to a more experienced colleague, so I am faced with the daily commute to the new centre, an hour away.

If I can't find another job locally, we will need a new car, for which I will also have to budget carefully

Yet, the process has spurred the two of us into some radical thinking and I have therefore asked to work in the new job on part-time hours. The rest of the week I would look after our son, William, now five and a half months.

All this is still under consideration. Meanwhile, I am spreading my net far and wide and applying for any job in my field which is within a reasonable distance of home.

I am sat right now, preparing for an interview, which if successful could be a very good career opportunity.

My wife will return to work in June, so learning what my future holds is priority one in the next fortnight. Her maternity pay is now at its statutory level, just over £400 a month, which means our savings are now supporting us, in part, through each month.

This shouldn't be for too much longer and I'll be looking to save a bit of money here and there, probably by switching energy supplier again and having another look at our food spend.

I even had a quick look at how much better off we might be if we ditched our pre-credit crunch fixed rate mortgage, but the penalties make it unreasonable to do.

If I can't find another job locally, we will need a new car, for which I will also have to budget carefully. I am factoring in fuel, tax and insurance into any potential salary increase to see if it fits with our finances.

Mostly, that only serves to limit my job choices but I am keeping everything firmly crossed that my skills in publishing and design will help me find a decent role somewhere.

INFLATION CALCULATOR This month's personal inflation: 1.4 % Use the calculator

In last month's update I wrote about the recent changes being made at my workplace and across my employer's business and how I was wary of my job's security.

Well, sadly this proved to be foresight.

Just days after writing it I was given notice that my post may be under threat.

This has yet to be officially confirmed, but I see very little chance that the original proposal - to move my position to another building 25 miles away - will not go ahead.

If it does I would be made to reapply for my role or one of several other roles at the new base.

Redundancy may be one route for me, and I would get a reasonable package.

While commuting is perfectly feasible in distance terms, taking a job there would in practice mean having to buy another car, spend hundreds if not thousands on fuel every year and spend two hours getting to and from work each day.

When you have recently sold one car to offset the increase in your mortgage and have a four-month old son, it is frustrating to think I may have to spend money and time I don't really have to stay in work.

Such is the effect of the recession we are now in.

But despite the sombre nature of the situation, I am using it as positively as I can.

Redundancy may be one route for me, and I would get a reasonable package.

But far from the payoff, it would grant me the time to spend with my son that I may not otherwise have had.

The potential change has made us reassess our options.

Should I change career? Should I work full time? If so, would William need to go to nursery full-time?

What is important to us - bringing in more money or being there more often while our boy is growing up? Am I better off working part-time?

All these are questions we have asked ourselves.

For once, regardless of the money we have, this could be a priceless opportunity.

INFLATION CALCULATOR This month's personal inflation: -2.5% Use the calculator

With Christmas out of the way, we can take stock and see how we stand financially for the next few weeks.

And once again things are not bad at all, although I fully expect the next few months to be progressively harder as our incomings shrink in reflection of how much Holly's maternity pay is changing.

At the moment, our intentions are for her to be back in full-time work by the end of June, which then makes it necessary to send William to nursery.

We are planning ahead but have no prices for the local nurseries, so we don't know how much this is likely to cost exactly. But we have a pretty good idea.

I fully expect the next few months to be progressively harder as our incomings shrink in reflection of how much Holly's maternity pay is changing.

At that stage we'll probably take our mortgage back on to a repayment deal, rather than interest only, which is what we have had since she left work. This will cost us more in the short term but is far better than just paying off the interest and not investing in our home.

Back to the present day. I had to pay a big £500 repair bill from the garage. The car had been making odd noises, which was clearly not good. I was hoping to replace it soon, but it depends on how much disposable income we have later in the year. If all goes well, we may end up treating ourselves - but practicality will be the most important factor.

On the employment front, the continuing news of redundancies up and down the country has made me wary. It shows you can't be too complacent when it comes to being in a job.

My company has been making people redundant since last summer and there are still 'reorganisational changes' taking place.

I have no plans to change jobs yet but I've got a cursory eye on what's available within my skill set, just in case.

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