THIS POST MAY CONTAIN AFFILIATE LINKS. READ MY FULL DISCLOSURE FOR MORE INFO
By Jessi Fearon66 Comments
I have been promising for a long time now to update my Our One Income Budget for Our Family of Four post and I am finally doing it! Now, it is important to note that several changes have occurred since last year when I originally shared that post. My hubs’ income has changed and so have our expenses.
There were also a lot of mistakes to that original budget, mistakes that caused our budget to not work and fail many times. Thank God, for our Emergency Fund or things could have been really bad. For example, I did not include our debt payoff plan or my hubs’ cigarettes in our original budget.
The original post also caused a lot of confusion because I do not include things like healthinsurance, retirement or taxes. It is important to note my retirement account is funded by my dog walking money and is outside our budget (which only includes my hubs income) and my hubs’ retirement account comes out of his paycheck every week. Same goes for our health insurance and taxes, that all comes out of his check before we even see it, therefore, I do not include it in our budget. I like to keep things simple. Our Christmas fund right now is being funded by my Swagbucks* earnings so is not included in our budget as paying off my student loans is top priority this year.
It is also important to note that this is our usual budget and sometimes it has to change based on life changes as the year progresses. Oh and in the original post, our dog was still alive and Collin was still on formula which is why the grocery budget was higher.
Many of you have also wondered how my hubs and I manage the budget together and truthfully, sometimes we do not. However, we have been finding balance between love and money by using a Google Doc’s spreadsheet to update our budget and to add any notes that may be relevant. I still like to keep my Budget and Bill Pay Binder with the printables from my Build a Budget that Works book at my desk as a physical reference and place to keep track of what bills have been paid. I have even started using Erin Condren’s Monthly Budget Book, which is pocket size to keep with me to help hold myself accountable. (You can get $10 off your first purchase from EC when you use my referral link here to sign up to receive her emails. You will get an email with the code to use on your purchase and it will end up making the Budget Book free!)
Okay, now on to the budget. P.S. If you are new here, these are real numbers not made up numbers. My tagline does not lie; this is real life on a budget folks.
INCOME:
$3,201.00
NOTES
Mortgage:
$740.00
Student Loans:
$289.00
This is the minimum payment for the loans.
Auto Insurance:
$101.00
Netflix:
$8.00
Fuel:
$50.00
This is only for my car as my hubs’ gas is paid for by his company.
Groceries
$690.00
Auto account
$360.00
This is the auto fund/new car fund. This post has detailson how we use a different savings account for our car maintenance needs.
Pat’s cigs
$120.00
Diapers/Wipes
$85.00
Tithe
$ –
We decided to temporarily stop giving to the Church until we have more of our debt paid for. We are working on giving from our time and talents for now.
Internet
$44.00
Cell Phone
$80.00
Power
$140.00
Gas (winter Heating)
$60.00
Water
$35.00
Clothing
$ –
I’ve been scoring this for free for the whole family. Thispost has the details.
Hair
$25.00
Emergency Fund
$100.00
Retirement
$-
Trash
$17.00
Cooks Pest Control
$22.00
This for the termite protection on our home.
Debt Payoff Plan
$220.00
Slush Fund
$15.00
This account is our first line of defense for any budgeting mistakes before having to go to the emergency fund.
Balance
$0.00
If you have ever wondered what a zero-based budget looks like, the above is one.
STANDARD DISCLOSURE: In order for me to support my blogging activities, I may receive monetary compensation or other types of remuneration for my endorsem*nt, recommendation, testimonial and/or link to any products or services from this blog. Affiliate links will have an asterisk (*) next to them.{Read my fulldisclosurepolicy here.}
JOIN THE CHALLENGE!
Money controlling you? I know the feeling. My family has been living this real life on a budget for a long time and I can tell you that there's never a perfect season, but with a few changes you can start to reign in your money issues.
Join the 5-Day Challenge today and start getting your money life in order this week!
Becoming a single-income family can introduce a need for careful spending, but it also frees up valuable time for managing the household, spending time with your children or taking care of family members. It also can remove the expense and mental burden of finding and paying for quality childcare and other assistance.
Do not subtract other amounts that may be withheld or automatically deducted, like health insurance or retirement contributions. Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
Calculate your monthly income, pick a budgeting method and monitor your progress. Try the 50/30/20 rule as a simple budgeting framework. Allow up to 50% of your income for needs, including debt minimums.
But it is possible to live well even on a small amount of money. Surviving on $1,000 a month requires careful budgeting, prioritizing essential expenses, and finding ways to save money. Cutting down on housing costs by sharing living spaces or finding affordable options is crucial.
If you have a large amount of debt that you need to pay off, you can modify your percentage-based budget and follow the 60/20/20 rule. Put 60% of your income towards your needs (including debts), 20% towards your wants, and 20% towards your savings.
Neglecting Long-Term Goals: Focusing solely on short-term financial goals while neglecting long-term objectives is a common mistake. Whether it's saving for retirement, a home, or education, incorporating long-term goals into your budget is essential for building financial security.
The envelope budgeting method is a budgeting system that was popularized by personal finance author Dave Ramsey. The method involves dividing your take-home pay into spending categories (e.g., rent, utilities, et cetera), labeling an envelope for each category, and putting the cash you plan to spend into the envelopes.
Ready to talk to an expert? Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.
Housing is likely your biggest expense, so downsize or relocate somewhere with a lower cost of living. Opt for a small space or rental apartment rather than homeownership. Shoot for $700 or less in rent/mortgage. Utilities should run you no more than $200 in a small space if you conserve energy.
Personal finance expert Dave Ramsey says if you're going through a tough financial period, you should budget for the “Four Walls” first above anything else. In a series of tweets, Ramsey suggested budgeting for food, utilities, shelter and transportation — in that specific order.
Is $50K a Good Salary? Let's look at the facts: In the United States, the median household income is $57,617, which often includes multiple household members' incomes as well as side gigs. Considering that 47% of the country makes less than $50,000 per household, you're already in the upper crust.
This includes being able to pay off debt and invest for the future. It's even more expensive for families, who need to make an average combined income of about $235,000 to support two adults and two children without the pressure of living paycheck to paycheck.
In 2021, single-income families made up approximately 27% of all family households in the United States. It highlights the fact that many households are relying on a single source of income to make ends meet, and that this is a reality for a significant portion of the population.
But just how much does a single person in California need to make to live comfortably? A new study from Smart Asset determined that a person must make at least $ 89,190 to get by comfortably.
It's quite possible to live well on $30,000 per year if you're debt-free, but what if you have debt? I would recommend trying to pay it off as quickly as possible with the debt snowball approach. Cut your expenses as much as you can and put the amount you save toward debt each month.
Introduction: My name is Arline Emard IV, I am a cheerful, gorgeous, colorful, joyous, excited, super, inquisitive person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
