I know we all have lots of opinions on personal finance and budgeting, so who better to analyze my household? My wife and two kids recently moved from a modest townhome into a proper house. The house is awesome, but the mortgage is triple what we were paying, so I’m not used to not being able to save and invest as much. Below is our monthly recurring expenses + % of income. Is this sustainable or solid? Appreciate y’all’s insights. Tear apart my financial life!
I totally get the shock of seeing your expenses rise, especially when upgrading to a larger home. Your budget doesn’t look unsustainable at all, though. The mortgage is high, but housing can often take up 30% of income, especially in bigger or more desirable spaces. What stands out most is daycare, it’s wild how much of the budget that takes up, right? But for two kids, that’s unfortunately pretty typical. When I was adjusting to bigger expenses, I started using Habit Money to keep an eye on categories that can sneak up on me, like gas or groceries. It’s helped me stay mindful without needing a deep dive.
@Ray
Yeah, I’ve been looking into budgeting apps too! Habit Money sounds cool… what’s it like?
Noel said:
@Ray
Yeah, I’ve been looking into budgeting apps too! Habit Money sounds cool… what’s it like?
It’s pretty straightforward! Just tracks spending and sends reminders. Super handy for not overspending, lol.
At a glance, it’s not long-term sustainable. 80% of your net income is assigned before it hits your bank account. I don’t see any discretionary spending here, which seems risky. Clothes wear down, cars need maintenance, and even modest birthday parties cost something. I think $726 a month for emergencies and vacations won’t cover everything you need. If any major emergencies happen, you could get into high-interest debt, which can be a slippery slope.
@Drew
What do you mean by discretionary spending? Like money for fun stuff?
Uma said:
@Drew
What do you mean by discretionary spending? Like money for fun stuff?
Exactly! You need to budget for things like clothes, outings, and unexpected bills. It’s easy to overlook those costs.
Totally feel you! Balancing a budget with kids is a juggling act. Maybe think about cutting costs on groceries or energy?
Davin said:
Totally feel you! Balancing a budget with kids is a juggling act. Maybe think about cutting costs on groceries or energy?
Good idea! I might need to look into meal prepping to save on groceries.
I agree, it looks tight. You might want to consider some side hustles to increase your income while the kids are still young.
Logan said:
I agree, it looks tight. You might want to consider some side hustles to increase your income while the kids are still young.
Definitely something to think about. Just gotta find the time between everything else, lol.
Don’t stress too much! Adjusting to new expenses takes time. Just keep monitoring your spending, and you’ll find a balance.