family of 4 living on $3,000 a month

I would also like to see you change their budget once both kids are in school full time and the stay at home spouse could pick up a part time job (which of course could have their entire salary directed towards savings goals!). Just trying to offer some outside the box suggestions. Ill help you estimate what expenses you can expect depending on where you live, give you some insider secrets (wink wink) regarding personal finance, and lastly try to inspire you to embrace frugality! Living Check out GOBankingRates best advice for retiring on a budget. Ive got an article to get you started (see it HERE), but there are also some other great resources online (just search side hustles for ideas). You can probably bring down the food cost though to $400 comfortably. Considering this is the one tool that I use to take and edit all the photos for my blog and business so I justified it a bitwe all do that with something right?! Kid-free date night happens with friends trading off watching kids, and/or relatives babysitting. Great post, my husband and I live outside of Seattle and I don't think we'd be able to live on one income at the moment but that would be the dream. Budget Goal #1 *assumes* they can find the cash to buy a house in the next 25 years, even though youve put that goal on hold. Retirement does not seem an option for these two adults. Car gas was about $80 a week I own a paid for Honda ;-). Take out loans later if you want to help out the kids because the grants the kids will qualify for will more than make up the interest amount. Pain in the butt sometimes, but bug savings especially if something were to go wrong with said vehicle. Lets get into the nuances, and figure out if YOU can do it! Good ol fashioned balancing the checkbook except digital version. You didnt mention whether youll be selling a house and using the proceeds for housing. For those of you who are new here, Im a mom of 3 under 5 and my husband is a resident doctor. That request for wild areas grabbed me, and my first thought was West Virginia, specifically Morgantown, a river town of 30,000 nestled in the Appalachian foothills and home to West Virginia University and about 27,000 college students. Also, check your credit cards because a lot of them have a one-year purchase protection if the product breaks (if bought with the card). 3 months in California? - California Forum Not a better investment out there, IMO. 12% goes to food (groceries and eating out). And the average monthly cost of living in the USA varies too. Ok, this is hard for me. At one point I was making an extra $100 a month minimum by getting rid of things! Wants: 3. Yes, that makes a lot more sense if Mrs. Smith is a stay-at-home mom. I own a 2002 Acura, which I bought used. Average Household Budget: How Much Does the Typical You can budget till the cows come home, but at the end of the day, its not going to save the middle class. That is a huge relief when living on a small income. But then again you did say this was an ideal budget. ETA: I looked at a couple more pay stubs, and my ratio (deductions/gross) averaged closer to 13%, though even that works out to $2755/month. But I really think it has worked great for them to share a room up until about a year ago. With proper maintenance, youve got 200,000+ miles available to you. Its hard to believe that we were living off of $2,500 to $3,000 per month when we first got married and felt like a king and queen! Candice now lives in New Orleans where she admits she spends more than she should on restaurants because the food is as good as youve heard. How to Live on $2500 Per Month Appliances can be fickle, and car parts tend to fail at exactly the WRONG time. theyre not Mr. Money Mustache and living walking distance from work or have all low costs of living) is going to have rough spots in life. Family of 4 Living Ooo Ok so they would sell the cars the already owned once they had driven them as much as practical. $3,000 a month is not considered a good salary. Ive got a 2003 Corolla that just hit 123k miles and I came to your site trying to decide if I should sell it and finance or see how much I can squeeze out of it. Average monthly expenses for a family of 5 or more: $7,400, or $88,797 annually. With $150 per month in 401k investments, and a $150 match by the company, the Smiths are putting away $300 per month. The children are small and will not remember much from this time. They go through 4 years of college, 4 years of med school, and then 3-7 years of residency making less than a 1st-year nurse. (for 20 months). Unless they anticipate a MUCH higher income later, any family making less than $50k a year should have NOTHING because all the saving will do will be to reduce the poor kids grants. 6 Big Shakeups to Social Security in 2023, 4 Social Security Shakeups from Biden That Could Hit Your Wallet by 2024, 8 Purchases Everyone Approaching Retirement Should Make, 10 Tough Conversations You Need to Have Before You Retire. They know where it goes. You are spending far too much on maintenance. A recent GOBankingRates survey found that 96% of Americans have less than $1 million saved for retirement, and more than half have less than $20,000 saved. . Average Household Budget: How Much Does the Typical most single people can live on $2,000 a month. For a family of four, living on $3,000 a month is not possible unless youre frugal. I hope you like your butt caked with poop. Small stuff makes a small impact. Congaree National Park, which preserves the largest tract of old growth bottomland hardwood forest left in the United States, is a half-hour away. Copyright 2023 MarketWatch, Inc. All rights reserved. Thanks for the suggestion, Ill update when I get a chance! It would be an idiotic waste for this family to save for college. Basically, they buy a vehicle for $4k $5k, drive it for 50k miles, and then sell it and get a 5-year-newer vehicle and repeat the cycle. Well, life has changed quite a bit since I wrote that post. ), that leaves him with a gross of 38k; which, minus 11.5% ($4,370), leaves him netting $33,630 which works out to be a few dollars over $2,800/month. But its their goal, and I wanted to honor that (and enjoy compounding returns). family of 4 This gives them $300 to work with, which is plenty to have fun with. Oh, and the best part is that you dont have to cancel your Netflix subscription! This info can be leveraged practically making frugal decisions on the three biggest things, which are Housing, transportation and food, you can live far below the numbers in the table above. We did not apply for residencies in cities like New York City or San Fransisco, and I would love to know how families do it on our income there. 401k $25,000 Emergency Fund $5,000 (in a Money Market account) College Savings $5,000 (using College Backer) Car 1 (Honda Odyssey) $5,000 Car 2 (Honda Accord) $3,000 Debts The Smiths are debt free, due to their frugal living choices. This budget definitely has some flex in it. $3,000 per month a good salary? (Living Things like notes, a box of our favorite candy, one rose instead of a dozen, and ordering pizza are enough to make it special. Their kids can own their education when the time comes. 3 months in California? - California Forum Now we live in Phoenix AZ and our bill has flip flopped $120 in the winter, $300 to $400 in the summer running the a/c. Is there a tax refund or any other other income return to them each year..if so, how much? I know a cash-only budget would save us more money, but I just love the convenience and perks of a credit card. Sounds heartless I know but that is what I would do. Average monthly housing cost: $1,050 Key monthly home costs Mortgage interest: $247 Property taxes: $196 Maintenance, repairs, and insurance: $180 The average U.S. household spends $21,409 per year, or $1,784 per month, on all things related to housing. Duh. When my wife got pregnant, I ended up with 3 jobs to make it happen for the first few years. Eggs (2 dozen/week). Lets look at our example above of New York City between Indianapolis: This means a salary in NYC of $50,000 would be equivalent to a salary of $20,999 in Indianapolis. Kathryn, you guys are ROCKING IT! Roanoke is a bigger city than Morgantown, with about 100,000 people, and has a better airport. I have also been able to find ways to save money in almost ANY budget category for our family, and for the family of those who I have coached. If they lived anywhere form the midwest to the northeast this year, there is pretty much zero chance they hit $50 a month this winter. Winter electric $300 to $400, and we used a wood burning stove and cut out own firewood for $20 a cord with a national forest permit. Perhaps this budget assumes that family lives nearby and are able to care for the kids during the day free of charge, but most are not so lucky. But that is also improbable, and the follow up budget will show them at a later date, with older kids and an update life situation. Shocks & struts every 100k or so. I doubt they can hire a babysitter for two nights and go out on two dates at $40 a pop. This is clearly a scam and the writer knows what they are doing. More Baby Boomers Are Retiring Homeless -- Could It Happen to You? Lets get into the details, and really figure out if YOU can live on $2,000 a month (and if so, where): Where Can You Live On $2,000/Month? Each account includes an unsecured line of credit designed to build credit fast. Im trying to show how much a family can do on not too much money, so I left that part out, but its definitely an option for those getting back on their feet . We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking toAmazon.comand affiliated sites. Live Somewhere Affordable Its called coveting and Im guilty of it. Between losing tons of hair down the drain after each baby has been born (ya that actually happens if you didnt know!) I wanted to show how even those on lower income have hope of working toward BIG goals. Big lots is the cheapest for bread, snacks chips and they ALways have a clearence. When our budget increases our food budget will be the first thing to go up for me haha. I agree that batteries go out, wipers need replacing, and brake pads as well. Mr. Smith is in a cubicle farm at a big Corp, slowly working his way up. We have health issues so prescriptions and dr costs come into play regularly. I havent crunched the specific numbers (to split out Federal vs. SS vs. Medicare), but say they get $1,000 back. The Smiths are doing great. We were literally headed out of our driveway to a family reunion with the kids a couple years back when our car started smoking. The Smith family will need to get a 3 bedroom within a few years unless they install a DIY murphy bed in the living room because they have a boy and a girl. It boils down to proving your worthiness and possibly signing a longer lease. Knowing our budget means sacrificing space or being willing to find housing in a place we can afford. Web5 Tips For Living Comfortably on $3,000 a Month; 1. Living On $3,000 A Month Economic Policy Institute My husband and I both run our own businesses and plan to work from 'home' while we're there, plus enjoy a better work-life balance while we escape the cold Canadian winter. The numbers above are for households, not single people. The family could search for a Vendor Finance home (we have bought 3 properties this way). Thanks for the tip, Mimi. Getting away from renting as fast as you can, is the best way. If you grocery has boneless chicken breast have them cutlett it for you you will get double the meals. Its also perfect for date night because we can count on getting our food for half price if its on Groupon. Goals Buy a house Retire by 55 Pay for kids college Priorities Family Fun They dont use reusable cloth toilet paper, hankies, napkins. Blue and Hazel site is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites, Copyright 2023 Blue and Hazel | Bamboo on Trellis Framework by Mediavine, Busy Toddlers Homeschool Preschool Review: Hands On Activities In 40 Minutes Per Day, Get a 30 day free trial for Amazon Prime here, Check out 10 healthy snack foods for kids here, Sign up to get $10 after you place your first order, If you dont have an account yet sign up here. Well done! This can get expensive, but by splitting entrees, passing on desert, using. And theres no vehicle replacement fund. Having a baby was less financially shocking since I didnt have to leave a $50K/year job. The average monthly living expenses for a single person in the USA are $3,189, which is $38,266 per year. Big stuff makes a big impact. But on two cars, I have gotten away with only $200 per year in maintenance for several years. This will impact on how close to work, they need to live. Great stuff as usual, Jacob. Snacks for kids: fruits and veggies, cottage cheese, crackers, rice reheated from dinner, smoothies, cereal, peanut butter on anything, cookies we make, and hard-boiled eggs. Vendor Finance is basically the owner of the property, providing the mortgage, instead of a bank.On one occassion , we bought a cheap property, and just made monthly installment payments at no interest. I dont know a damn thing about how much it costs to keep a car road. Meal planning totally helps me with our grocery budget, and I just tried ordering grocery delivery for the first time and being able to shop online helps me stick to my list and not impulse by. Give me all the things in those Costco freezers lol! Theres no way to predict these contingencies, and no extra money to put in the emergency bucket. I know many suggest buying over renting because the monthly mortgage payment is lower than rent and it is going towards owning something. I just cant believe how small the bills and food is in this budget. My current favorite is. We havent rented since 2010, and we were in a 2-bed 2-bath apartment for $860/month. That also includes things like toilet paper. It would be hard for us to live in certain places on $3,000 a month without going down to a studio apartment for all 5 of us or moving into a less than desirable neighborhood. I love all things budget. I generally think aiming to live on $4,000/month is more realistic for families of four. And, we use a grocery receipt app called Ibotta that gives us cash for things we are already buying. Shelter accounts for $1,050 of our monthly budget. Like I said, typical. I hope you will find the financial payoff of all your hard work with blogging, just don't give up! Come check it out, and PLEASE leave a comment with your thoughts and suggestions to create the Ideal Budget! These offers do not represent all deposit accounts available. Multiply that by 2 cars, and thats $748 a year or $62.50 a month. Cutting down on the big things like housing, transportation, food and insurance makes it possible to live in cities like Las Vegas, Orlando, Huston and Tulsa. Our sweet little family of 4 plan to live in California for 3 months, from January to the end of March. Realistically, those cars will be in the shop 1 to 2 times each annually for repairs, with something going wrong in the neighborhood of $350 to $700 per repair, Then youve got the regular routine stuff like batteries, tires, brakes, wipers, oil changes, and all the other routine fluid changes I listed above, and realistically, with a little luck, you can keep those two cars fully operational and well serviced for about $1500 each annually, $3k total. Therefore, you should try to live more frugally to have more money you can save or invest! Average Household Budget: How Much Does the Typical I would also move to free or much cheaper dates. It is also after his work auto deducts our health and dental insurance costs. You can see details of how it works in mysaving with Rakuten post. Now, if were arguing the merits of their goals, I agree, maybe they shouldnt be putting away for college until income increases. We dont buy anything we dont already have the money for, and we have never paid a cent in credit card interest because we pay it off on auto-pay each month. Cheat Lake and Copper Rock State Forest are less than half an hour east of the city, so there are plenty of outdoor opportunities. Still, I have never seen rent below $1000 which would make it a no-brainer. Prioritize Needs Vs. Hes also been a featured expert on CBS News, MSN Money, Forbes, Nasdaq, Yahoo! It means making sure one paycheck can cover rent/ mortgage, not two paychecks. How To Homeschool Preschool: Getting Started, How To Get A Picky Toddler To Eat Their Dinner And Try New Foods. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. WebSave. For clarity, the $3,000 we budget is what gets dropped into our account after money for taxes is withheld and a small portion saved for retirement. America largely does not subsidize things like health care, child care, or education as many countries do. I really enjoyed reading about your personal experiences and how you have made financial adjustments for your family to make your home functional. This has honestly been the hardest for us and the main reason for going over has been poor tracking. Get $10 by signing up and scanning your first receipt. They live 12 miles from work, though traffic is pretty poor. Average living expenses for a single person. When the kids get to kindergarten (if we make it that far) its going to feel like a giant raise. If something happened, we would suffer greatly. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. How to Live on $2500 Per Month The budgets estimate community-specific costs for 10 family types (one or two adults with zero to four children) in all counties and metro areas in the United States. There is no silver bullet, just hard work and honestly some blessing as well to get you thru. We have a $20 per month kid budget (2 kids). I am currently earning around $3000 monthly after taxes. Grab a copy of their budget HERE and bookmark this page for reference. For a family of four, living on $3,000 a month is not possible unless youre frugal. Car maintenance is VERY rare on good, reliable used cars. I know this isnt a money saving site but since we have been Prime members for about 10 years now we have saved tons on the free two day shipping (which pairs perfectly with Vipons discounted products). They never pay for anything. But that is a difficult path, I know. Im a single mom. Month These are some common monthly expenses in America and their average costs: Dont be alarmed by that number! a month His health insurance for the family is MUCH more expensive. Goals Buy a house Retire by 55 Pay for kids college Priorities Family Fun Taking a look at what can realistically be done while achieving goals is a great method to navigating your own financial health.
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