House: $3535
$3300 Mortgage + taxes
Once we got the mortgage, that cost is set. The property taxes are up to the county to determine, but it is possible to appeal them. I will certainly do that at the first opportunity.
$195 HOA fee
This covers the pool fees, yard maintenance, and certain home insurance. We are at the will of the HOA for this.
$40 Insurance
This was a category that we just reduced. We had too much coverage and were paying $90 a month, but we recently got clarity of what the HOA covers and were able to reduce our coverage and save a bunch.
$170 Gas/Electric/Water/Sewage/Trash
Keeping the AC to a minimum helps reduce this.
$43 Internet
I recently checked and I think that I could probably get this down to $30 a month. With internet there are tons of promotional offers, so you have to be careful. I checked with my provider, AT&T, and they told me after a year my rate will jump to $70 a month. Also, I have to wait until April to cancel in order to avoid early cancellation fees.
Entertainment: $41
Audible $8
I got suckered into this one which isn’t surprising since it’s an Amazon company. They were offering half off for 3 months. I listen to audiobooks and thought it would be great to get some credits for a discount. However, I later realized that most of the audiobooks that I want are available from the library. I will be cancelling this soon.
Hulu: $8
We have the commercial free plan which is $12, but due to an Amex offer we get $4 off. I intend to keep this until I finish Seinfeld.
Spotify $15
The family account is the way to go if you have more than just you. You could also get it for free if you don’t mind commercials. However, I use it at work for lots of hours, so I prefer to pay.
Magazines $8
We recently subscribed to The Week. It keeps us up with the news.
Other
Cell phone service $52
Sprint costs $49 and my line is $3.
Blog $13
Hosting, domain, and privacy fees are the the price I pay to provide you content.
Life insurances $100
This is a nice to have. My wife and I work and have no children, so we’d likely be fine. However, if we choose to have kids it makes sense to have and rates go up as you get older, so we just decided to start now. I have a whole life and my wife a term. I’d go for the term as it is much cheaper.
Auto insurance $85
Our cars aren’t very expensive and we haven’t been in accidents or had tickets so our rates are pretty low.
AAA $10
Our cars are also old and likely to breakdown as our new one did the other day. It is cheaper to keep this on hand than to call a tow truck, battery, or other repairman.
This is an absolute steal. Each of our employers pays for our healthcare coverage and subsides the other. This will increase over time, but I’m very happy with these benefits since everything in healthcare is so expensive.
What we don’t have
Food delivery
There are many services that will give you food to cook. We have tried the cheap intro offers from Blue Apron, Hello Fresh, and Every Plate. However, it is quite expensive, so I’d recommend shopping yourself. Fortunately my wife is a great chef.
Car payments
Our recent car we paid cash for as it was from a private party. If the interest rate was less than our mortgage than I would have taken a loan, but that it very unlikely.
Gym membership
I splurged on a rowing machine that I have been using.
Student loans
College was mostly paid by our parents, but the loans we did have ~$20k have been paid off.
Children
Having children would add a host of costs. Child care, school supplies, and more.
Conclusion
The quest is to reduce monthly expenditures to just essentials so you have more to save or enjoy. $3,880 a month comes out to $46,500 a year, but 91% of that is housing related so I’m pretty happy about that. Every year or more frequently take a look at your recurring charges. I’ve heard many stories of people getting clothes delivered monthly or a subscription because they were too lazy to cancel it. Take the few minutes to save yourself some money. Maybe GEICO has it right after all.