We are a family of five on one salary. This is our monthly budget

Living on a single income with a family of five is not easy. Especially when costs continue to rise every year. For many Americans, making it work means being creative, being disciplined and always looking for How to Expand All Dollars. For Katie and Mark, living simply and sticking to a strict budget became a way of life.

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In a YouTube video, Katie revealed exactly how it works. With all your pay, you pay off your debts to build savings.

Katie is a mom who stays at home with her three sons. One is in high school, one is in junior high school, and the youngest in elementary school. She said, “We’re a family of five trying to pay off a lot of debt. I was mostly talking about six-figure debt, but in reality it’s under six-figure figures now.” Manage family budgets Use a zero-based approach to ensure that every dollar has a purpose.

Mark works full time and is the only provider of the household. His $6,500 salary forms the backbone of his monthly budget. At this moment, their income totaled $13,350 from Mark’s two paychecks. Katie will also budget $350 in credit card rewards she plans to use for Christmas shopping.

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The biggest of the family Fixed costs It’s their mortgage, which is $2,536 a month. Utilities and other essentials are carefully tracked, with grocery budgets of $1,250, eating out at $200, water $100, electricity $250 and gas $75.

“I’ve budgeted at $1,250 on groceries. I’m budgeting $200 for eating out,” Katie said.

It also allocates $300 for car gas, $173 for phones, $86 for internet, and $50 for garbage services. Subscriptions including streaming services total $132 per month. Debt repayment is a top priority.

Katie said, “We’re a big debt we’re working on and trying to get rewarded — hopefully this will go away by November 2025, so we’re budgeting $1,500 for that.”

In total, the family budgets $4,595 Debt payment For months including Highlander car loans and Mark’s student loans. Other $100 buffers will be reserved for unexpected costs.

Despite focusing on debt, families also prioritize savings. She explained, “I have a $500 budget for our emergency fund.” Families will also prepare for annual school expenses by increasing the school fund, ensuring that they have enough space to cover the $1,500 school contributions they will need in December.