Family of 3 (husband/wife/newborn) in mid-size city: what should our budget be?

[BrownsFan2021]

I'm trying to set a good budget for our family throughout my residency (4 years). I want to live frugally but not go overboard. Is it possible to live comfortably on a $6,000/month budget between the three of us?

Also, if anybody has any good budgeting apps, that would be great!

[artemis]

Most American families get by on less than $6,000/month, so of course it's possible for your family to do so.

As for budgeting apps/programs, I've not used it but I have heard good things about You Need A Budget.

[jhwkr542]

I used Mint in residency. You should be able to live comfortably on that amount. It's much easier to do if you keep the big things to reasonable levels (rent, car, babysitter).

[Nysoz]

A general rule of thumb is 50/30/20 rule. 50% of income goes towards needs, 30% goes to wants, 20% goes to savings.

Reasonable rent, cook in bulk/meal prep will help a lot to limit dining out expenses. If there's a Costco by you consider a membership as their rotisserie chickens are a cheap source of protein and most things in bulk are cheaper. Just don't get suckered into buying everything like I do.

[CordMcNally]

If you're not on the coast and not in a city like Chicago or Austin then your budget should probably be less unless your spouse works and makes pretty good money. Have you broken down your projected budget?

[Lordosis]

Does your spouse work? Daycare? We had a baby in residency and that was by far our largest expense. But we still lived on less than 6 k a month. Probably between 4-5 but I honestly did not track back then.

[8arclay]

Ive been a YNAB user for 9 or so years now. Im well passed the point of needing to budget, but the habits are well engrained at this point. Its essentially the envelope method wrapped in a nice app. I highly recommend.

[Turf Doc]

i like the idea of YNAB but found it really confusing and not intuitive. It also doesnt work well when youre living on loans but i guess that changes as a resident

[Random1]

we never had a budget , just spend less than you make.

Make good decisions on the big items if you can

1. rent
2. car
3. child care
4. school loans

dont nickel and dime, find ways to entertain yourself and wife inexpensively

[Lordosis]

Also you should make an effort to not live beyond your means these next few years but the biggest impact is what happens after residency. What you do those first few years will decide your financial future.

[pysibal]

Ultimately more information would be helpful. A mid-sized city does not mean anything about the price to live there. I live in small city/town in a rural place but with an average COL (per Spurling's Best Places).

Also don't know your income, assets, debt, age, professional plans, level of family support / need for childcare, projected job stability, retirement savings, transportation needs / cars, etc.

Overall, though, you're talking about budgeting an after-tax income of $72k yearly, which puts you in the top half (possibly third) of USA earners. You wouldn't even have to live like a resident.

[bovie]

If you really want to keep it simple, your budget should be whatever is left after saving 10-15% for retirement.

Obviously that savings percentage should increase after residency when you're making real money.

[bovie]

I suppose that would make your budgeting app a calculator. But that's probably not the answer you were looking for.

[childay]

If you really want to keep it simple, your budget should be whatever is left after saving 10-15% for retirement.

Obviously that savings percentage should increase after residency when you're making real money.

Max out roths, spend the rest cautiously

[VentAlarm]

I’m an attending with 3 kids in a mid-sized city and live off well under 10k/mo including a large mortgage payment. You can find a way to scrape by on 6k unless your in a crazy expensive city.