It's Sunday night. The kids are asleep. I'm staring at a spreadsheet and a $4,200 monthly nut that used to be $3,800.
That's the reality of budgeting for a family of four in Denver right now. Our expenses have gone up across the board — groceries, utilities, gas, insurance, you name it. And like most families, our income hasn't kept pace.
I'm a certified financial counselor. I teach people how to budget for a living. And honestly? Even I'm struggling to keep up. So if you're feeling behind, you're not alone. Let me show you exactly how my family budgets in a 4.2% inflation environment, with real numbers.
Our Monthly Expenses: The Hard Numbers
Before I share the numbers, a quick disclaimer: every family is different. We have two kids (Olivia, 10, and Ethan, 8). We own our home in the Virginia Vale neighborhood (bought in 2019, thank God). We have one car payment. We have a Labrador who eats more than a teenager.
Here's our actual average monthly budget for the first half of 2026:
- Mortgage (principal, interest, taxes, insurance): $2,100 (bought before prices went insane)
- Groceries: $1,150 (up from $850 in 2024)
- Utilities (electric, gas, water, trash, internet): $380
- Two car payments: $620 (one paid off, one still financing)
- Car insurance: $180 (up from $150 last year)
- Gas: $250 (Rachel commutes to Aurora; I work from home)
- Health insurance (family plan through Rachel's job): $620
- Childcare (after-school care): $480
- Phones, streaming, subscriptions: $180
- Kids' activities (dance, soccer): $200
- Dining out: $120 (we've cut this way back)
- Home maintenance: $150
- Medical copays and prescriptions: $100
- Clothing: $140 (up from $100)
- Gifts and entertainment: $100
- Miscellaneous (school supplies, pet supplies, etc.): $150
Total monthly expenses: around $6,920. That's not including savings, investments, or debt payments beyond the mortgage and car loan.
Our after-tax household income is about $7,400 a month. So we're saving about $480 a month. That's not a lot. One emergency could wipe that out.
I'm sharing this because I want you to see that even a financial counselor isn't flush with cash. We're comfortable, but we're not rich. And every month, we have to make trade‑offs.
Where We've Cut Back (And Where We Haven't)
Over the past two years, we've had to make some painful cuts. Here's what changed:
- Dining out: We used to eat out twice a week ($300/month). Now it's once a week, usually something cheap like Chipotle or a local pizza joint ($120/month).
- Streaming services: We had four. Now we have two. We rotate them. That saves about $30 a month.
- Vacation: We used to take a week-long trip to the mountains every summer. Last year, we did three long weekends instead. This year, we're doing one long weekend. That saves about $1,500 a year.
- Groceries: We switched to store brands, started meal planning around sales, and cut back on expensive cuts of meat. We're still spending $1,150, but without those changes, it would be $1,400.
Where haven't we cut? Healthcare. Childcare. The mortgage. Those are fixed. We can't reduce them without major life changes (selling the house, changing jobs).
The Emotional Side of Budgeting Under Inflation
Honestly? The hardest part isn't the math. It's the feeling that you're losing ground no matter how hard you try.
I remember looking at our grocery bill in January 2025 and seeing $1,000 for the first time. I literally said, "What the hell did we buy?" Rachel just looked at me. We'd bought the same stuff we always bought. It just cost more.
That feeling of helplessness — that's what eats at you. You start questioning every purchase. You feel guilty for buying organic milk for the kids. You skip a haircut for yourself so you can afford a birthday gift for a friend.
I've had clients break down in tears in my office over this. They're not bad with money. They're just getting crushed by forces outside their control.
If that's you, I want you to hear this: it's not your fault. Inflation isn't your fault. High rent isn't your fault. You're not lazy or irresponsible. You're surviving in an economy that's stacked against you.
But survival isn't enough. We also need hope. So let me tell you what's working for us.
Three Strategies That Are Actually Working
Strategy 1: The zero‑based budget. Every dollar has a job. We don't track every penny (that's too much), but we do assign every dollar of income to a category before the month starts. If we overspend in one category, we have to underspend in another. There's no "extra" money floating around. This has cut our impulse spending by at least $100 a month.
Strategy 2: The 30‑day rule for non‑essentials. If we want something that's not a necessity — new clothes for us, a gadget, a fancy dinner out — we wait 30 days. Most of the time, we forget about it. The things we still want after 30 days, we budget for intentionally.
Strategy 3: The sinking fund system. We save small amounts each month for irregular but predictable expenses: car repairs ($75/month), home maintenance ($150/month), holiday gifts ($50/month), back‑to‑school clothes ($40/month). When those expenses hit, we don't panic. The money is already there.
What We Don't Do (And Why)
I'm often asked: "Marcus, why don't you do a no‑spend month? Why don't you give up coffee? Why don't you cut your own hair?"
Here's my answer: because I've learned that extreme deprivation doesn't work. It leads to burnout, resentment, and then a spending binge. Small, sustainable changes are better than big, painful ones.
We still get coffee. We still order pizza on Friday nights. We still take the kids to the movies sometimes. We just do it less often and more intentionally.
Budgeting isn't about being perfect. It's about being consistent over time.
If You're Struggling, Here's My Best Advice
If your expenses have gone up faster than your income, you have two levers: increase income or decrease expenses. Most people focus on decreasing expenses because it feels more controllable. But at a certain point, you can't cut any more.
If that's you, focus on the income lever. Could you ask for a raise? Switch jobs? Pick up a side hustle? Rachel started teaching an online course for nursing students last year. It brings in an extra $300 a month. That's not nothing.
We also started renting out a storage space in our garage on Neighbor.com. That's another $100 a month. Small wins add up.
I will keep posting updates on this. Check back soon.
P.S. Cooper ate a hole in our couch last month. That was a $400 unexpected expense. Thank God we had a sinking fund for home maintenance. That's why you plan.
This article is for informational purposes. Your expenses may vary. Build a budget that works for your family.
Marcus Thompson
