Our Bare Bones Budget | Monthly Expenses For Our Family of 5

I talk a lot on here about paying off our debt. Up until not long ago, I was breaking down our entire month’s budget by what we spent in each and every category. But it became tedious to do each month when the categories were so similar.

It was then that I made the decision to post only our debt payment progress when I post our debt updates each month. It’s given me more focus on just our debt and how things that have happened throughout the month have either helped or hurt our debt snowball payment for that particular month.

But I still get questions time to time about what our monthly budget looks like, how we set up our monthly budget, as well as what do we save for, do we save all cash, how much do we budget and save each month for specific categories … you get the point. I’ve been hesitant to write this out because what our family of 5 spends in Pennsylvania is going to be different than what a family of 5 will spend in Missouri, Tennessee, or even in New York or California.

Then I realized that the reality is that each situation is different and unique. So I decided to write out a post breaking down our monthly budget and how I set up our budget.

Before I get into the nitty gritty… please keep in mind, these are numbers based on the higher end of our budget. I do like to budget on the high end of things that way when the bill comes in, it’s not a big shift from what we’ve budgeted.

And while I list our categories and expenses out, grab a pencil and a piece of paper, and do the same for your budget!

Bare Minimum Expenses

These are the expenses that make up the bare bones of what we spend each month. The amount shown below is what we budget each month, and unless noted, is not always the amount that we pay. Often what we spend is less than what’s budgeted, and in those instances, we use the extra amount budgeted and put it towards debt. By using zero based budgeting, every little bit that’s extra over the course of the month goes to paying down our current debt snowball.

Mortgage: $550/m

While our mortgage is a debt, it’s in our bare minimum expenses because it’s our housing. Our mortgage is actually around $548 and change, but I like writing a check for an even $550. Less space used, less words I need to spell out on the check, and more money put towards the loan. Every little bit counts.

For comparison, before we bought our house, the house we rented was costing us $805/m, with no inclusions like utilities, heating, etc.

Home Phone / Internet: $78/m

We live very rurally, where we have no cell phone service. I’m probably showing my age here, but “Fox viewing position” for The Simpsons WAY back in the day is strikingly similar to our “Can I get at least 1x cell service?” position.

I have to turn off wifi on my phone and stand at a weird angle at the edge of the steps in our mudroom, walk in circles at the end of our driveway, or stand in the middle of the road pointing my phone at the sky like ET trying to ‘phone home’. It’s why we have a landline.

With our landline comes what passes as internet service. I like to think it’s more like a guinea pig trying to do his best to speed up a dial-up connection, but you work with what you’ve got available to you. And in our neck of the woods, this is what’s currently available to us.

Cell Phone: $48/m

For those times when I’m not at home, I do have a cell phone. I personally use Straight Talk, which runs $47 & change after tax for up to 10GB of data, as well as unlimited talk & text per month. I switched to them {from Verizon Wireless ironically} back in 2014 when we moved to our house.

Prior to moving here our cell phone was our main phone. We didn’t have the need for a landline phone then. But as stated earlier, I can’t rely on my cell phone as the means for people to get a hold of me in emergency situations or from the school, and our landline isn’t going to get a hold of anyone while I’m not at home.

Electric: $150/m

Our electric bill is the biggest culprit for varying bills. In the winter when we’re using our wood stove, our bill is around $80-$85 per month, while in the summers when we have the pool filter and air conditioners running, our bill is around $150. I cannot lower our bill since our electric is through a rural co-operative, and it’s better than the $300 monthly propane heating bill we had at our previous house, so I don’t mind paying this bill at all.

Chase: $100/m

Yes, we do still use credit cards. This particular card is in Hubs’ name, and the balance was paid of back in 2015. Since then, the monthly charges are paid in full each month. This card is used for things like Netflix, RedBox Rentals, and other entertainment expenses. I personally think it’s a little too high per month, but in our house it breaks down to about $20 per person each month, or $5 per week per person, so it’s not that bad.

This card is also used for online purchases, such as replacement items for our pool and wood stove. It saves us from putting our debit card information online.

Student Loans: $230

This amount is divided into two different consolidated student loans. One is Hubs’ and one is mine. Both of our student loans are currently on an income based repayment plan, based on our family size and income, and is reevaluated every year. The last two years we’ve reapplied, our payment amount has reduced, but I still pay this amount each month.

I am am counting down the days until I don’t have to make these payments anymore. Sadly, there are a lot of days between now and then, but it’s nice to have my eyes on the prize.

Insurance: $245/m

Our monthly insurance payment is for our car, the house insurance, and 5 life insurance policies. Individually, these plans are very reasonable, but together they make for a large payment each month. I am aware that we could save a little by switching to paying every 6 months, but I like paying the bill each month. Seems weird, but it’s true.

Groceries & Household: $810

I budget $200 per week for groceries and household items, spent in cash. Is this a little high? Yes, I think it is. Four years ago I was able to slash our grocery budget by more than half, from more than $1,200 per month to just under $500 for our family of 5. That amount didn’t include household items, which put our spending even higher!

But things have changed over the last four years. First of all, I was feeding three kids under 10. Now I’ve got a teen and a pre-teen. There are weeks I can’t seem to keep enough food in the house! {And then reinforced with growth spurts well over 5 inches in the course of a year!} Other weeks we need more household items {how many deodorants does a teenager really need?!}.

The dynamics of our family changed, and my food and household budget had to change with it.

This doesn’t mean that I gave up on saving wherever I can. I do shop at Aldi, Target and Wegmans to help get our weekly needs at the lowest prices in my area without spending an eternity hunting down every minor deal.

Fuel: $250

Fuel is something I’m still working out each week. We live on top of a mountain that is 30 minutes from town, and I drive a CUV. So every time I have to go to town and back, I use a quarter tank. I already combine trips when possible, but I’m not foolproof and life still happens. Sometimes schedules don’t line up, or I have to go pick up a sick child, and it results in more trips to town than initially planned. Sometimes, on the very rare occasion, I have multiple trips per day. I use our debit card when I fill up the car, and any amount that’s remaining from what’s budgeted goes towards debt.

Orthodontist: $200/m

When my oldest started the first phase of his orthodontic work back in 2014, it was only $100 per month for 14 months. At the time, sending this money to the ortho each month was money that we simply couldn’t afford. It’s what prompted our attention to our budget and getting started on our debt free journey.

Four years later, he’s starting Phase 2, and I’m not so nervous about this payment this time. Does it stink sending $200 per month to the orthodontist when I could be sending it to our debt? Yes. BUT… the bigger picture here is that four years later, we’ve paid off numerous accounts, we’re currently saving for things, and working in expenses like this into our budget.

And while this expense may be a thorn in my side, and we still have a long way to go, the bigger picture here is so much better than it was before.

Please note:

This list doesn’t include what’s currently in our debt snowball; they’re items we’re trying to pay off and no longer have as line items in our budget.

Savings

Each payday, I set aside money into our savings account for our sinking funds. I look at what I spent the previous year in each of these categories, and adjust the numbers for the current year. I divide the savings goal by 52, for the number of weeks in the year, to determine how much to save each week and then use my 52 week tracker to keep track of the progress.

The numbers below are in a range because some months we have 4 pay periods and other months we have 5 pay periods, and that determines how much we set aside that month.

Savings: $218.33

Every month I set aside money in our savings account that we use throughout the year to pay our non-monthly bills like trash, propane deliveries, oil changes, vehicle inspection and registration expenses, AAA service, and taxes. We also use this account for medical copays, prescriptions and costs towards our medical deductible.

Gifting: $260

The money goes towards covering expenses for birthdays, holidays, and any gift giving we’re doing throughout the year. Personally, I prefer to save the money throughout the year rather than slowly buying gifts throughout the year. This way, as we get closer to the time of the actual gift purchase and giving, and can make sure that the gift matches the needs of the recipient at the time..

Truck: $117.50

Hubs drives a company truck, and this year his company switched from deducting the expense for personal miles {driving to and from work} that are added to the truck. Rather than taking out the expense each paycheck, it’s now coming from one paycheck at the end of the year. Rather than getting docked with a smaller paycheck in November, I’ve been setting aside the amount they used to deduct, and will readjust as needed for next year.

Medical: $243.75

I like to set aside money each month into a sinking fund for medical expenses throughout the year. This includes copays, and prescriptions, and any costs that go towards our deductibles. I also set aside money for any dental and vision expenses. I use what we spent the previous year on these items as a rough estimate for what I need to set aside the following year. However, this does not include any expenses for procedures or surgeries that come up {such as when my daughter needed her adenoids taken out}. Those expenses I save up for separately.

Extra Expenses:

Dance: $157/m

This amount is for 5 dance classes, spread across three kids. Since we do live in a rural area with very few kids around us, it’s hard for the kids to socialize with others their own age. For that reason, I allow them to be in one extra activity – outside of what’s offered at school.