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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.
In a YouTube video, Katie reveals exactly how they make it work, from paying off debt to building savings, all on one paycheck.
Family Background and Income
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.
Monthly Expenses and Debt Payoff
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.
Savings, Revolving Funds, and Kids’ Needs
Despite focusing on debt, the family also prioritizes savings. Katie budgets $500 for their emergency fund each month. 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.
Katie manages revolving funds for variable expenses, including $100 for home maintenance, $89 for car maintenance, and $50 for health and dental. She also budgets $550 for holiday gifts, $250 for car insurance, $250 for Marc’s personal spending, $200 for her own spending, $200 for the boys, and $200 for pet expenses. Then she sets aside $100 for a family fund, $89 for taxes, and $150 for house bills.
After so much budgeting done, everything came up to $12,575, leaving the family with $775. “If we don’t spend all of the money in one month, it can just roll over because some months are definitely more expensive with kids,” she said.
Budgeting Philosophy
Katie’s approach is rooted in flexibility and learning from past mistakes. She uses a detailed spreadsheet to track every dollar and regularly tweaks her system to make it more efficient. “I don’t ever want to put Christmas on a credit card — we used to do that before I started budgeting, and I don’t ever want to do that again,” she explained.
Living on one income with a family of five is not easy, but Katie and Marc show that it’s possible with careful planning, honest communication, and a willingness to adjust as needed. Their journey is proof that with proper budgeting, discipline and teamwork, families can cover their needs, pay down debt, and still enjoy life together.
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