BBP REAL LIFE BUDGET | Stay-At-Home Mom + Single-Income Family

It's time for another Real Life Budget. We asked my readers to submit their REAL information. Real spending, real debt, and real savings goals.

I am taking those real-life numbers and showing you how I would organize and budget that information using my Budget By Paycheck® Method.

In this video, we are going over Elizabeth and her family's financial situation. Elizabeth is a stay-at-home mom to 2 boys, and her husband is a maintenance manager. Elizabeth and her husband have done a great job at cutting out unnecessary expenses and not having any credit card debt, however, it would be beneficial for them to focus on raising their income to be able to save for holidays, their kids' events, and put extra payments to their debt.

CHAPTERS:
00:00 Introduction
02:12 Their Story & WHY
03:40 Income
04:27 Fixed Expenses
05:27 Red Light/Green Light Test
06:24 Variable Expenses
06:37 Debt
08:45 Savings
11:06 Budget by Paycheck Method
15:24 Conclusion & Recommendations

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[loveandjoy]

Sadly this is the textbook definition of house poor. No one wanted to tell them that they couldn’t afford this home. Currently they are spending 55% of their take home pay on housing ( mortgage + land) To be in the safe range, they should have stuck to 30% or less for housing. That would make their monthly mortgage payment + home owners insurance, lights and water etc $1, 389. That’s whole housing ball of wax. This is why it’s important to run your numbers and have people who give you realistic information. It’s a shame that they didn’t have someone to help them realize that their dream home will quickly become a nightmare.

[vanessadallas]

i wouldn’t recommend selling the truck for the motorcycle as their sole vehicle but perhaps a cheaper car. the motorcycle would not be practical for driving in inclement weather, grocery shopping etc.

[emc]

I like watching these videos but the expenses are not realistic. I find it more beneficial to look at the last 6 months of spending to see what you actually spent to get an idea of what your budget really needs to look like. The variable expenses had no clothing, miscellany, just food and gas. What about a haircut? Cold medicine when someone gets sick? Birthday expense, go out for dinner once a month? This one was really underestimated and they will be in debt with any minor expense. Interest rates were insane too.

[Nikki-kswi]

That mortgage is crazy high for their income to me

[evanscouponmommy]

For that income that mortgage is not justifiable. They need to bring in more income if that want to keep that property and not be constantly house poor. I think the wife needs to work at least part time b/c it doesn’t seem they have any significant frivolous spending.

[sanctifiedne]

Sorry, really not trying to be rude but they shouldn’t have bought that mobile home in the first place, they paid way too much for it. At first, I was thinking well maybe that’s for a large acreage of land and the home. NOPE. If they want to keep it, the wife NEEDS to work!! Plain and simple. Otherwise, they will never make it. It’s unrealistic to think they could without any income from her. The truck also needs to go and be replaced with a practical family car.

[MsGechi]

Selling a truck they can't afford to drive is a good idea. Your nail polish is so pretty.

[mara]

Great video! Mom can be a substitute teacher, same schedule with her kids, and she can work 2 or 3 days per week.

[BEKord]

Definitely agree they need to up the income. Kids are older and she should contribute to get them in a better spot. Also, with a child 14 they’ll be graduating soon and what’s the plans for the child? College? They’ll be driving soon etc (doesn’t mean they have to provide a car, I didn’t for my son, but need to be ready for all those graduation expenses as well). The land and home costs for a mobile trailer (which has its own worries for storms etc), far exceeds what they can afford. I’m surprise a bank approved them to be honest with debt to income ratio. I’d also agree to sell the truck and get a small family car so she has transportation (not buy the friends motorcycle, that doesn’t work for a family of four unless they have another paid off car). Also that Allstate insurance is very high- I would price compare!

[deniselittle]

They have to sell the truck, pay it all to the loan and pay the remainder as quickly as possible. Having a $560 monthly payment for years for a truck they aren't even using just to build their credit score is definitely a waste of their resources. That truck is losing value every month, ye they are paying all kinds of interest on it. There are much easier ways to build a credit score. That $560 could build their emergency fund in 4 years time. Even if she doesn't earn any income they could put even half that money to their emergency fund and the other half so they have some available funds for those things not appearing in their budget now. ie: things like Miko mentioned: kids activities and other expenses that come up regarding school, clothes, birthdays, medical expenses.... you name it as the list can go on and on.

[Lesh]

This breaks my heart. Someone should’ve stepped in and been responsible for admitting this was horrible. How were they able to even get these loans? People a dream becomes a nightmare in this case. No way can you live your dream when you can’t even accommodate for inflation, emergencies, or basic upkeep.

Unfortunately she needs a job. Work nights somewhere. Then she can leave for work after her husband is home. He can put kids to bed. Then she can get back home before kids go off to school. Sleep during the day while they’re at school. They also need to sell that truck. And buy a vehicle cash. Try to get a profit or even break even on the truck. Ask to borrow a car until you save up a couple thousand from her job.
I’ve known people who had to work like this in order to get somewhere.
Honestly they should also be looking into finding somewhere else to park that mobile home. Maybe a family member’s property? Sell the land and pay off the mobile home. It will only decrease. And by the time it’s falling apart they will still be struggling if they keep going the way they’re going.

Stay within your means. So you can succeed and not be stressed. I feel so much for them!

[kozykeia]

Seems like expenses are missing. Household items, back to school shopping, birthdays, Christmas. How is that car not being driven? Do her is and the kids stay in the house all day everyday in the summer? What about grocery shopping or doctors appointments? How are they only spending money on food and gas outside of bills?

[lindsayjackson]

I enjoy the single income videos. I always gain new insight. I am a newly single mom so this really helps me plan in moving forward with my 2 boys. I also get paid biweekly, which means the checks never fall on the same date (in comparison with bills). Your color code system has really helped me. Thank you!

[mariacastillo]

Hi Miko. I see that they use Allstate for their insurance. Although everything’s high at this time I’d shop around for a cheaper insurance. That should alleviate about $75 out of pocket. What worries me is what about the extras such as medicine, doctors’ visits, Christmas, etc.? Also I totally agree that $5, 000 is a bit much for someone who purchased some land without having at least $1, 000 in an envelope in case of an emergency. 🤷‍♀️Looking for a part time job once school starts sounds like a great option.

[natashafreeman]

The cost to live in their house is crazy considering it’s a mobile home. For $2, 000 a month I’d want to own the land. Also the interest rate on the truck is very high.

[msdh]

This is my life too. I’ve been waiting on a video of being a stay at home mom such as myself depending on hubbys income

[kallistoindrani]

It becomes so clear how little they actually have when she breaks it down by week. All the money they spend is really mostly bills and food and that's it. Which means that anything unexpected pops up, they are in the red. What if they need a doctor? A dentest or just new clothes? How do they do that?
Maybe the house is just too expensive for them? I wonder how they even got the loan of the bank.

[rachelgilbert]

These are pretty much favorite videos on YouTube! I wish they could occur twice per month, I love the problem solving aspect to budgeting, it’s like a puzzle! 💚💙💜

[morganwhite]

Georgia has very mild winters in general. It only snowed one weekend the two years I lived in Athens, GA. It typically shuts everything down the rare occasion it does snow. Nobody can drive in it. 😅

Thanks for the video!

[lisadearing]

We were in this exact same situation about 10 years ago. I was working part time for a doctor. I decided to find a second part time job, which I did pretty quick. We were thrilled to have extra money! That lasted for a hot minute! A month after I started my second job, the doctor announced she was retiring and closing the office in 6 months! 🙈

Luckily I was hired full time at my new job when the other job ended.