Shocked: Our bare-bones monthly cost of living is 5K after taxes! What's yours?

Anonymous
I just redid our budget, since we just refinanced. After $300/family health insurance premium, 5% retirement savings (matched), and $150/"buy-back" for years in military service retirement plan:

$3000 mortgage/ins./taxes/escrow
$740 car payment (first new car in 8 years)
$150 car insurance
$120 basic church donation
$400 NOVEC (average)
$175 Verizon (cable/internet/phone)
$70 cell phones
$30 trash
$30 life insurance
$200 braces for two kids
$30 media (Netflix, newspapers)
$300 kids' sports

$5400 for automatically withdrawn monthly bills

Food, diapers, household, clothes, schoolbooks (we homeschool)...I don't like to think about it.

Honestly, I think I am starting to get anxiety attacks about the cost of living.

Anonymous
Anonymous wrote:In order to ascertain whether we can realistically live on one income or not, DH and I have spent the past nine months recording all of our expenditures. We have also made efforts in several areas to cut the fat from our budget -- especially food costs. We are shocked to find that our absolute bare-bones monthly budget (for us and our toddler) is still 5K after taxes! This figure does not include any savings for retirement or college, daycare expenses, or the medical insurance premiums that are deducted from our paychecks. I should also note that we have a relatively small mortgage for the area (2K including escrow), that we have NO commuting costs (we use Metro and both have Metro subsidies), that we rarely eat out, and that DH and I both tend to wear holes in our clothes before buying new ones. We spend $2500 total for yearly trips to see out-of-state family; no other vacations.

Has anyone else recently calculated their bare-bones budget? We consider ourselves to be a frugal family and are stunned to know what it costs just to keep the lights on in the DC area.


Sounds like you have less than 20% equity in your home, because you mention that insurance and tax are paid thru escrow. Your discretionary spending is out pacing your mortgage by 5 vs. 2. I would be socked as well. Our bare-bones budget is about 40% of yours, but our mortgage is paid off!
Anonymous
Anonymous wrote:We need to lower the minimum wage so that low level workers like nannys, plumbers, repair men , lawn etc. cost less for the middle class. The tradesmen unions have been raping this area for years.
I am stunned no one jumped on this. Seriously? Why should nannies cost less for the middle class? Should BMW's and Bentley's cost less for the middle class too? If you can't afford it, don't buy it. You can't walk into a luxury car dealership and expect to pay economy car prices. Yes, lowering minimum wage would significantly improve the standard of living all around. More people on welfare and food stamps is just what we need. If people can make more money living on unemployment, welfare, working under the table etc. they're going to. Why go to work and not get by when you can get more for staying home? We need to make it beneficial to go to work...help out the people who are working full time but barely making it because they earn $100 over the threshold. Those are the ones who deserve help. The people working a 40-60 hr week at min. wage or slightly above it are the ones who deserve the breaks...not the wealthy, not the slovenly. Give people an incentive to work.
Anonymous
I posted on page 1 that we get by on $2200/month or so after taxes. My rent is around $1250 or so plus utilities. Paid off my used car a few yrs ago so it's just gas, insurance and maintenance. Not much on food b/c my DS eats next to nothing. Let's see. What else? The after-school program is based on my income so it isn't much. No vacations really. Got rid of cable to save money. I'm a single parent so I rarely go out (no $$ fora sitter) so I don't spend money on going out. It is certainly doable. My son goes to a good ES b/c I chose an apt complex in a good school district.
Anonymous
I keep looking at everyone's budget and wonder where you all fit in underwear, makeup, nylons, socks, floor cleaner, sponges, paper towels, laundry detergent, candles, batteries, light bulbs, stamps, tampons, soap, dishwasher detergent, etc... Do you all add these types of expenses into your grocery bill? I just don't see anyone with a realistic "Target" expense. This is the stuff that weighs us down. Add in birthday presents, sports (and equipment for said sports), school donations (public!), gas, the occasional trip to the carousel ($4/kid), it adds up even quicker. Where do you all budget for these things?
Anonymous
Anonymous wrote:1400 Rent
1100 Daycare
650 Student loans (two formers students, five degrees)
400 Grocery
120 Utilities
60 Health Insurance
20 Renters
30 Cell service
100 Dogs

3880 (if I did my math right) for a pretty low budget lifestyle with good benefits and no car


PP, if you have no car, you must be living near a Metro stop. How did you manage to find such cheap housing? do you live in a studio?

1400 in rent, that's awesome.
Anonymous
Anonymous wrote:OP, people need to have a line item in the their budget for the following unpredictable expenses:
1) household repair, upkeep and maintenance

2) car repair, upkeep and maintenance (and insurance, and registration)

3) clothing (including larger seasonal purchases) and hair, nails, etc

4) lawn/property upkeep

5) unforseen medical expenses

6) presents esp. Christmas

7) classes and outings esp for the kids

A lot of us who stayed at home tried to minimize the above expenses by doing it ourselves, learning how to do it on the cheap, making do, buying from thrift stores, etc. That in effect becomes one of your jobs if you stay at home on a budget.

You should figure out how much you are spending now on these things every year and divide that by 12 to get a monthly budget for each one. Then decide how realistic it is that you could cut back in those areas.

I don't stay at home anymore, but I did for man years and I almost NEVER bought a toy new for my children -- it was usually handmedowns or thrift store. Only free activities and classes, or ones that just cost a few dollars. We made presents by hand. I learned to do a lot of my own plumbing.


PP, not necessarily.

If you live near public transportation, you can do without a car. If you are renting an apartment, you don't need lawn/property upkeep, and major repairs are taken care of by the landlord. And I definitely won't call a manicure 'an unpredictable expense'.


Anonymous
Someone else may have already jumped in on this but I'm not sure why someone's so stunned by a two-adult household to have five degrees. DH is an attorney (2 degrees); I'm an academic (3 degrees -- bachelor's, master's, doctorate). I realize I may sound defensive, but why would five degrees be a "waste"? We could not have our current positions or incomes without the education -- I'm not getting the PP's point.
Anonymous
Anonymous wrote:I keep looking at everyone's budget and wonder where you all fit in underwear, makeup, nylons, socks, floor cleaner, sponges, paper towels, laundry detergent, candles, batteries, light bulbs, stamps, tampons, soap, dishwasher detergent, etc... Do you all add these types of expenses into your grocery bill? I just don't see anyone with a realistic "Target" expense. This is the stuff that weighs us down. Add in birthday presents, sports (and equipment for said sports), school donations (public!), gas, the occasional trip to the carousel ($4/kid), it adds up even quicker. Where do you all budget for these things?


Totally. I am one of the first PPs, and I was brutally honest that we spend at least 7500, and that includes all the "target" crap you mention. This is our big budget buster, for some reason. How do people reign in spending on this? We shop at Costco when we have the time to make a run. I even "make" some of my cleaning products (we only use green products) when I have the time, but I really feel like the only way to save $ on this stuff is to go without. Is that what people do?

I think most of the people who posted that they only spend 3000 a month or less, either don't live in DC, or have NO idea what they actually spend each month.
Anonymous
2500/rent
300 groceries (includes household items like laundry soap, toilet paper, etc)
230 insurance (car, life, renters)
100 toddler expenses (diapers, wipes, milk)
600 cash (this is what we use for lunch or dinner out, gifts for birthdays, gas and any other unexpected small expense)
430 car payment
100 metro
100 verizon
90 cell phones

Ugh this is depressing me.
Anonymous
Anonymous wrote:I think your outrage is making you blind. I've said already that DH travels for work so his expenses (including food) are paid by the company so 3 to 4 days a week we only have one adult eating in the house.

We're not calves so we don't drink gallons of milk. We occasionally drink rice milk and I cook using almond milk that I make myself as needed.

If you're interested in tips for saving on groceries there are several helpful websites with free information all over the Internet.

On the furniture - we've been living in furnished rentals for a while and in our previous home (3 years ago) we did have to buy furniture but it was 3 years ago! Who buys furniture every year?

Anyway, why are you all so angry? Just because people are spending money differently than you? That's such a weird reason to be angry... wow!

Anonymous wrote:
Anonymous wrote:BTW, we don't have cable and DH's company pays our Internet and cellphone, just in case you're wondering.

DC's PT are fully covered by our insurance so again it doesn't cost us a thing. Anythig else about MY bills you can think of?

Anonymous wrote:
Anonymous wrote:You quoted me.

Last year, our only medical expense aside health insurance was $15 co-pay fir my first OB visit and $250 for my emergency C-section.
This is our first real Christmas with a child so I'm not sure if we'll buy gifts or not. For my taste DC has enough. We don't have family in the coutry and don't exchange gifts with friends. Clear now?

I go to the grocery store once a week and spend on average $40. Just came back, BTW and spent $39 this trip. I'm not an extreme couponer but I do stock up when I see a good sale and clip coupons for things that we actually buy. I cook from scratch and our diet is different from most people we know (DH is vegetarian, DC is gluten/lactose intolerant and I'm gluten intolerant with food allergies). We eat a lot of fresh produce and rarely use substitutes.

We don't buy clothes every month and don't service our car every month so I just listed what we spend every month. Gas is around $100...
Anonymous wrote:
Anonymous wrote: Hm let me see...

$1300 - rent
$400 - car payment
$90 - utilities
$300 - health insurance
$150 - groceries

That's all for us. Family of 3 with #2 on the way.

We visit my country every other year, DH's country every other year and we take vacation in the US every year. The US vacations are usually very cheap because DH travels for work so among nights free in hotels, rental car points and flying miles we spend almost nothing.


So you don't by clothes, or anything other than food? No Christmas presents? No...anything? I thought OP was talking about what she actually spends each month, and everyone else is leaving out all of this shit, as though they never have car break down, have a sick pet, get a hair cut, buy a baby shower gift, etc.


Yes, we're clear. You did not factor in all of your monthly expenses. Got it.


Life insurance?
Travel expenses averaged out by month?
Car repairs/gasoline average out by month?
Clothing expenses (purchases and cleaning) averaged out by month?
Entertainment/movies?
Furniture purchases?
Water/sewer? (if not part of rent)
Pets expenses?
Hair cuts?

Some of these may not apply, but others might. Many of us don't buy clothes EVERY month, and we can even go many months without purchases. But at some point, we have to get new shoes, and the kids outgrow their winter coats. Those are still expenses and have to be considered, even if they don't come frequently.

I know people are curious about how two adults can live on $150 of groceries a month. Does this really 90 meals? Do tell more details about what you're eating, where you're shopping, etc.


I don't think people are "outraged" so much as simply not really believing you. Either you are working some serious magic with the money, or you are not really accounting for what you are spending. It just defies logic that you are feeding yourself, your baby, and your DH (even part-time) on $40/week. We want to know what you are eating -- what foods you buy and how you make that last for 7 days worth of meals. Heck, just buying toilet paper, shampoo and paper towels - plus a head of lettuce and a tomato - could take up your entire $40 for the week. How do you fit in household items, like cleaners and paper products? Are you growing some of your own food? Almonds these days cost $10/pound, so even making your own almond milk is $$$$. Seriously, how are you doing it?
Anonymous
To the pps with the large target bills[list], you might want to try amazon subscribe and save for those items. While I don't know how much the direct saving is on each product, the benefits are: predictable monthly cost, and no splurge spending at target (ie on the nonessentials)
Anonymous
Our bare bones budget would also just be around 5000, and our mortgage is about 2100.
Car payment of 340, but that will go away in a year
Anonymous
Anonymous wrote:
Anonymous wrote:I think your outrage is making you blind. I've said already that DH travels for work so his expenses (including food) are paid by the company so 3 to 4 days a week we only have one adult eating in the house.

We're not calves so we don't drink gallons of milk. We occasionally drink rice milk and I cook using almond milk that I make myself as needed.

If you're interested in tips for saving on groceries there are several helpful websites with free information all over the Internet.

On the furniture - we've been living in furnished rentals for a while and in our previous home (3 years ago) we did have to buy furniture but it was 3 years ago! Who buys furniture every year?

Anyway, why are you all so angry? Just because people are spending money differently than you? That's such a weird reason to be angry... wow!

Anonymous wrote:
Anonymous wrote:BTW, we don't have cable and DH's company pays our Internet and cellphone, just in case you're wondering.

DC's PT are fully covered by our insurance so again it doesn't cost us a thing. Anythig else about MY bills you can think of?

Anonymous wrote:
Anonymous wrote:You quoted me.

Last year, our only medical expense aside health insurance was $15 co-pay fir my first OB visit and $250 for my emergency C-section.
This is our first real Christmas with a child so I'm not sure if we'll buy gifts or not. For my taste DC has enough. We don't have family in the coutry and don't exchange gifts with friends. Clear now?

I go to the grocery store once a week and spend on average $40. Just came back, BTW and spent $39 this trip. I'm not an extreme couponer but I do stock up when I see a good sale and clip coupons for things that we actually buy. I cook from scratch and our diet is different from most people we know (DH is vegetarian, DC is gluten/lactose intolerant and I'm gluten intolerant with food allergies). We eat a lot of fresh produce and rarely use substitutes.

We don't buy clothes every month and don't service our car every month so I just listed what we spend every month. Gas is around $100...
Anonymous wrote:
Anonymous wrote: Hm let me see...

$1300 - rent
$400 - car payment
$90 - utilities
$300 - health insurance
$150 - groceries

That's all for us. Family of 3 with #2 on the way.

We visit my country every other year, DH's country every other year and we take vacation in the US every year. The US vacations are usually very cheap because DH travels for work so among nights free in hotels, rental car points and flying miles we spend almost nothing.


So you don't by clothes, or anything other than food? No Christmas presents? No...anything? I thought OP was talking about what she actually spends each month, and everyone else is leaving out all of this shit, as though they never have car break down, have a sick pet, get a hair cut, buy a baby shower gift, etc.


Yes, we're clear. You did not factor in all of your monthly expenses. Got it.


Life insurance?
Travel expenses averaged out by month?
Car repairs/gasoline average out by month?
Clothing expenses (purchases and cleaning) averaged out by month?
Entertainment/movies?
Furniture purchases?
Water/sewer? (if not part of rent)
Pets expenses?
Hair cuts?

Some of these may not apply, but others might. Many of us don't buy clothes EVERY month, and we can even go many months without purchases. But at some point, we have to get new shoes, and the kids outgrow their winter coats. Those are still expenses and have to be considered, even if they don't come frequently.

I know people are curious about how two adults can live on $150 of groceries a month. Does this really 90 meals? Do tell more details about what you're eating, where you're shopping, etc.


I don't think people are "outraged" so much as simply not really believing you. Either you are working some serious magic with the money, or you are not really accounting for what you are spending. It just defies logic that you are feeding yourself, your baby, and your DH (even part-time) on $40/week. We want to know what you are eating -- what foods you buy and how you make that last for 7 days worth of meals. Heck, just buying toilet paper, shampoo and paper towels - plus a head of lettuce and a tomato - could take up your entire $40 for the week. How do you fit in household items, like cleaners and paper products? Are you growing some of your own food? Almonds these days cost $10/pound, so even making your own almond milk is $$$$. Seriously, how are you doing it?


I agree PP: honey, vanilla, and almonds (ingredients for almond milk) are all expensive... I try not to spend more than $40 on food a DAY and I often don't succeed! If this woman is for real, I would really like to know her tricks because I could learn something from her!
Anonymous
To be completely honest, DH is the one who does the budgeting but I'm the one handing the money to the cashier at the grocery store so I know how much I spend.

Since our utilities are based on sqft I mostly use cloth (cleaning rags, diapers, napkins) for cleaning supplies, etc we go to Costco with a friend 3 or 4 times a year, I buy produce locally, we use freecycle and craigslist a lot... I clean with water and vinegar and we don't use fabric softener. TMI here: I BF and didn't have a period still got pregnan with #2 so it's been almost 33 months since I had to wear pads. I planed the pregnancies around the same time so I won't have to buy maternity clothes since I'm pregnant during the exact same seasons and fingers crossed to have same gender so we will save money there too

On the menu... today for Bfast we had fresh fruit and omelet. Lunch was rice patties and beet root casserole, dinner was pizza. Nothing abnormal I guess.

Anonymous wrote:
Anonymous wrote:I think your outrage is making you blind. I've said already that DH travels for work so his expenses (including food) are paid by the company so 3 to 4 days a week we only have one adult eating in the house.

We're not calves so we don't drink gallons of milk. We occasionally drink rice milk and I cook using almond milk that I make myself as needed.

If you're interested in tips for saving on groceries there are several helpful websites with free information all over the Internet.

On the furniture - we've been living in furnished rentals for a while and in our previous home (3 years ago) we did have to buy furniture but it was 3 years ago! Who buys furniture every year?

Anyway, why are you all so angry? Just because people are spending money differently than you? That's such a weird reason to be angry... wow!

Anonymous wrote:
Anonymous wrote:BTW, we don't have cable and DH's company pays our Internet and cellphone, just in case you're wondering.

DC's PT are fully covered by our insurance so again it doesn't cost us a thing. Anythig else about MY bills you can think of?

Anonymous wrote:
Anonymous wrote:You quoted me.

Last year, our only medical expense aside health insurance was $15 co-pay fir my first OB visit and $250 for my emergency C-section.
This is our first real Christmas with a child so I'm not sure if we'll buy gifts or not. For my taste DC has enough. We don't have family in the coutry and don't exchange gifts with friends. Clear now?

I go to the grocery store once a week and spend on average $40. Just came back, BTW and spent $39 this trip. I'm not an extreme couponer but I do stock up when I see a good sale and clip coupons for things that we actually buy. I cook from scratch and our diet is different from most people we know (DH is vegetarian, DC is gluten/lactose intolerant and I'm gluten intolerant with food allergies). We eat a lot of fresh produce and rarely use substitutes.

We don't buy clothes every month and don't service our car every month so I just listed what we spend every month. Gas is around $100...
Anonymous wrote:
Anonymous wrote: Hm let me see...

$1300 - rent
$400 - car payment
$90 - utilities
$300 - health insurance
$150 - groceries

That's all for us. Family of 3 with #2 on the way.

We visit my country every other year, DH's country every other year and we take vacation in the US every year. The US vacations are usually very cheap because DH travels for work so among nights free in hotels, rental car points and flying miles we spend almost nothing.


So you don't by clothes, or anything other than food? No Christmas presents? No...anything? I thought OP was talking about what she actually spends each month, and everyone else is leaving out all of this shit, as though they never have car break down, have a sick pet, get a hair cut, buy a baby shower gift, etc.


Yes, we're clear. You did not factor in all of your monthly expenses. Got it.


Life insurance?
Travel expenses averaged out by month?
Car repairs/gasoline average out by month?
Clothing expenses (purchases and cleaning) averaged out by month?
Entertainment/movies?
Furniture purchases?
Water/sewer? (if not part of rent)
Pets expenses?
Hair cuts?

Some of these may not apply, but others might. Many of us don't buy clothes EVERY month, and we can even go many months without purchases. But at some point, we have to get new shoes, and the kids outgrow their winter coats. Those are still expenses and have to be considered, even if they don't come frequently.

I know people are curious about how two adults can live on $150 of groceries a month. Does this really 90 meals? Do tell more details about what you're eating, where you're shopping, etc.


I don't think people are "outraged" so much as simply not really believing you. Either you are working some serious magic with the money, or you are not really accounting for what you are spending. It just defies logic that you are feeding yourself, your baby, and your DH (even part-time) on $40/week. We want to know what you are eating -- what foods you buy and how you make that last for 7 days worth of meals. Heck, just buying toilet paper, shampoo and paper towels - plus a head of lettuce and a tomato - could take up your entire $40 for the week. How do you fit in household items, like cleaners and paper products? Are you growing some of your own food? Almonds these days cost $10/pound, so even making your own almond milk is $$$$. Seriously, how are you doing it?
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