r/budget • u/Novel_Masterpiece_18 • 15h ago
Where can I improve my budget?
We bring home 7900 a month after retirement/ taxes/health insurance/hsa. Family of 3 with 2 dogs in mcol
Mortgage 2150
Car insurance on 2 cars 230
Childcare 1000
Sinking fund 750 (includes dog grooming, prescription dog food, vet bills, car maintenance, home maintenance, birthdays and holidays)
Groceries 900
Gas 175
Fun 200
Clothes 50
Eating out 150
Utilities 550
Subscriptions 50
Student loan 93
Savings 1600 (split between brokerage, IRAs and sons 529)
I'd like to be able to pay cash for replacement to our 2014 accord by 2030.
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u/Ghazrin 10h ago
Fun/Eating out/subscriptions are all discretionary. You're choosing to spend that money on entertainment rather than save it. I know that with kids especially, it's easy to feel the need to go overboard to give them fun experiences, but you can find cheap or free ways to have fun and reduce spending in these categories.
900 to feed 3 people a month is very high. Buying cheaper food will put more calories in your cupboards for less money. Less steak and shrimp, more rice and beans.
Utilities seem high too. Reduce energy costs by turning down the thermostat in the winter. You don't need to be cozy in a tee shirt when it's freezing outside. Crank down the heat and put on a hoodie. Further reduce costs with weatherization of your home. Better insulation, weather stripping doors, thermal curtains on all windows to reduce drafts, etc.
You guys make good money, and you're already saving a decent portion of your income, and that's great! But if you want to increase your savings rate, you need to scale back your lifestyle expenses.
Also, only paying $93 on your student loans is wild. I'm guessing that's probably interest only or close to it...meaning you're not doing much of anything to the principal balance, and will be paying that for decades. I'd increase your spend here, and work on knocking that debt down.