We’re a Family of 5 Living on One Salary: Here’s Our Monthly Budget

Tobi Opeyemi Amure

Sat, Jul 5, 2025, 8:01 AM 4 min read

Living on a single income with a family of five is not easy, especially when expenses keep rising every year. For many Americans, making it work means getting creative, staying disciplined and always looking for ways to stretch every dollar. For Katie and Marc, living simply and sticking to a strict budget has become a way of life.

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In a YouTube video, Katie revealed exactly how they make it work, from paying off debt to building savings, all on one paycheck.

Katie is a stay-at-home mom to three sons: one in high school, one in middle school and the youngest in elementary school. She said, “We are a family of five who are trying to pay off a bunch of debt. I almost said six-figure debt, but we are actually under six figures now.” Katie manages the family’s budget and uses a zero-based approach, ensuring every dollar has a purpose.

Marc works full-time and is the sole provider for the household. His $6,500 paychecks form the backbone of their monthly budget. In this instant, their income totaled $13,350 from Marc’s two paychecks. Katie also budgets $350 in credit card rewards, which she plans to use for Christmas shopping.

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The family’s largest fixed expense is their mortgage, which is $2,536 per month. Utilities and other essentials are carefully tracked, with $1,250 budgeted for groceries, $200 for eating out, $100 for water, $250 for electricity and $75 for gas.

Katie explained, “For groceries, I’m budgeting $1,250. For eating out, we’re budgeting $200.”

They also allocate $300 for car gas, $173 for phones, $86 for internet and $50 for trash service. Subscriptions, including streaming services, total $132 monthly. Debt repayment is a top priority.

Katie said, “Our big debt that we’re trying to work on and pay off — hopefully in November, we want this gone by November 2025, so I’m budgeting $1,500 for that.”

In total, the family is budgeting $4,595 toward debt payments for the month, including their Highlander car loan and Marc’s student loan. A miscellaneous buffer of $100 is set aside for unexpected expenses.

Despite focusing on debt, the family also prioritizes savings. She explained, “For our emergency fund, I’m budgeting $500.” The family also prepares for annual school expenses by increasing their school fund, setting aside enough to cover a required $1,500 school donation in December.