When I look at our total spending I feel like it's a crazy high number, yet when I drill down into each individual expense it all makes sense and I can't figure out where we're being wasteful. Any help from a second pair of eyes would be appreciated!
Family: 2 adults, 2 kids (age 1 and 3)
Gross Income: highly variable as we own our own business but generally > $500k
Average Monthly Expenses for Past 3 Months (from Mint)
- Mortgage / Rent: $0 (We own our home outright)
Home Maintenance: $1,100
Childcare: $3,100 (Nanny and preschool)
Food & Groceries: $1800 (About $1000 of this is groceries and $800 is eating out)
Health: $1400 ($750 is for health insurance and rest is for out of pocket expenses)
Utilities & Subscriptions: $580 (electricity, water, internet, mobile phone)
Car & Transport: $100 (We own our car outright so this is just gas, parking, and Uber)
Uncategorized: $250 (Cash spending and a few miscellaneous items like presents for other people)
The things on this budget that cannot be changed are: childcare, health, and utilities. I think the areas where we can be less wasteful are food, travel, and shopping.
Home Maintenance: We did a lot of necessary repairs that had piled up in the last few months. Moving forward, I project this to go down to less than $200 per month.
Travel: really expensive because in the past 3 months, we took two weekend trips with the grandparents (one with each set) and we paid for everyone. During the rest of the year, we'll probably take another 2-3 trips.
Health: We pay $750 per month for health insurance (reimbursable by our company), but our health insurance doesn't cover a lot of preventative things like dental cleaning or vaccines for the baby so we pay those out of pocket. I had some health issues in the past few months so there were quite a few expenses here. This also includes gym membership.
Here's the thing that gets me — I don't feel like we are big spenders, yet when I look at how much we spend it seems like a crazy high number. For example: in the past 3 months, the only things we've bought are toys and clothes for the kids, a bunch of tennis equipment for my husband as he's an avid tennis player, some books, and $26 worth of makeup for me. It's not like I'm going on high-end shopping sprees every week. We don't have cable TV (or any TV for that matter, as we have a no screentime rule in the house). We shop for groceries at Costco. We don't drink alcohol or smoke, both of which are expensive.
So what do you think: am I wildly overspending, or just need to readjust my expectations as to what things cost?