[USER]

Net monthly wage: 5,200 ( after maxing 401k and HSA)
– food expense: $500 ( for 4 people)
– Student loans: $600
– 529 plan: $600 (2 kids)

– house: $2,100 including utilities and such
– Saving in HYSA: $300 (goal is 6 months but so far only has 1 month saved)
– Roth IRA: $600

Spending: $500 —-question: is this amount ok to spend monthly— Sometimes I feel guilty haha and feel I should have up the saving??

Where do you draw the line of saving and enjoyung a bit of fun?

[Sadie]

500 a month for 4 people for food is what I need to know more about…

[Robert]

When are you looking to be fi?
What have you saved up already?

[Stacey]

Personal choice. I scrimp and save every nickel I can on every expense that isn’t the couple of things that really bring me great joy. Eating fantastic food and my boat.

[Christopher]

There aren’t any “it’s ok” police. If you’re comfortable with the consequences of that spending, and how long it will take to save for retirement, then it’s fine. If it cuts into your larger plan, maybe it isn’t.

I personally don’t like spending when savings is low, or when the spending will derail my longer term plans.

[Golden]

$500/month food for 4 is what we’re spending too. Some here are asking why so low?

I didn’t know that was low. Well kids are eating 2 meals a day in school.

We shop at Costco and Aldi and buy in bulk. We have second freezer to stock food.

Vegetable garden and chickens that lay fresh eggs. We don’t eat out too often. I guess that’s the answer.

[Rick]

Stop 529
Build emergency fund
Payoff student loans
Restart 529 but consider at 80% of current
You have your spending money

[Golden]

We set a percentage to save. After that, it’s free for all. No guilt.

[Steve]

Begin with the end in mind.
Define long term goals and determine the milestones you need to hit to achieve those goals.

Same with mid-term goals and any short-term goals that can’t be covered in one pay period.

As others have commented, make sure there’s some fun budgeted into mid and short term goals.

On payday:

1. Shoot an azimuth and if necessary, adjust allocations.
2. Pay bills and allocate to the budget.
3. Allocate to long-term goals.
4. Allocate to mid-term goals.
5. Allocate to short-term goals.

6. Blow every dime remaining on all the things your family enjoys. Experiences, things, whatever.

And dont forget to divvy some of it up for each individual family member to blow however they want.
Edit: Also…

Personally, I don’t want my kids to have student loan debt, but we’re not going to live like paupers to cover 100% of every collegiate possibility.

I max the amount needed for the maximum state tax-deduction.

I regularly talk to my kids about them having skin in the game.

They know they’ll need to get scholarships (which they are perfectly capable of doing) and they’ll have to make some hard decisions that weigh debt versus financial freedom: private versus public, out-of-state versus in-state, and whether they want to attend community college their first 2 years.

[Author]

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