I recently got a new job, and now my boyfriend and I have a combined income of about $7,000 a month. We have one child and are living with my dad right now. We’re working on paying off some debt and planning to get our own apartment next year. Is $7,000 a month enough for a family of 3 in the Boston area? We’re not the best savers, so any budgeting or saving tips would be really helpful!
You should aim to spend no more than 50% of your income on fixed costs like housing, groceries, utilities, and insurance. Put aside 15% for retirement and save around 25% until you’ve built up a six-month emergency fund. The rest can be for fun and extras!
Congrats on the new job! $7k should be enough for a family of 3, but it’s all about budgeting smartly. I’d suggest trying a zero-based budgeting app like YNAB or MyBudgetCoach to help you plan every dollar. Let me know if you need help getting started!
Start by listing your current expenses and researching how much rent and bills are in the area you’re moving to. Try sticking to that plan now so you get used to it. It’s all about discipline!
Check out this free 50/30/20 budget calculator here! It breaks down needs, wants, and savings/debt reduction. I suggest automating your savings so you don’t even think about spending that money.
You can do something like 15% toward an emergency fund, 65% for necessities, and 20% for fun. Make sure your housing costs are below that 65% mark so you have some breathing room!
Definitely set up a budget and track everything. I use Monarch, which tracks my income and lets me assign every dollar a job, like bills or savings. Anything left over goes straight into savings at the end of the month!
How much debt do you have? If possible, stay with your dad until it’s paid off. Use the cash envelope method to budget for categories and stick to it—helps a lot with controlling spending.