$27k a year total is very impressive for a family of 4. Especially with what you spend on food, gas, cell, misc/fun. $1,200 a year total on fun for a family of 4 would mean basically almost no travel, almost never eating at a restaurant, no hotels, no plane flights, no skiing, no theme parks, no purchasing of recreational equipment, etc... Do you spend anything on clothes? Do you have auto insurance I didn't see that listed? Health insurance for 3 people? Dental costs for 3 people? Repairs or upgrades to townhouse? Do you have to buy furniture? Tools? Etc...
I eat at home and eat very simply (a lot of rice, fresh veg, fresh fruit, etc...) and I have to work hard as one person to keep it under $225/mo (don't grow anything myself). I do like to eat healthy so I buy a lot of fresh veg/fruit....could be cheaper if I did less of that.
Congrats and amazing to live on $27k a year with a family of 4.
This is my month to month spend, and you're right it doesn't include health insurance or state income tax. I guess when things come directly out of my paycheck I don't considered them the same type of expense as the ones that I pay for and have more control over. Health and dental insurance is cheap for us-- $90 twice a month and the cost is offset by our employers giving us $2,750 a year in HRAs and a soon to start HSA.
We do have random expenses that pop up. I guess you could throw home repairs in that category. Most repairs fit into the misc budget or can wait until they fit into the budget. Major upgrades are covered by extra paychecks. We also have a lot of random income that pops up too that isn't accounted for in the numbers above. Business travel where we were given per diem but kept our meals super cheap, mileage reimbursement, health bonuses, random prize winnings, etc.
In the past, vacations were usually covered by extra paychecks as well. Extra paychecks also went to "let's have some more fun!" However, since we discovered travel hacking, vacations are becoming ridiculously cheap. They weren't extravagant beforehand, mostly camping at the national parks and covered under the fun category. With all of the retirement withholdings, our net paychecks are quite small now. The sum total of all our extra paychecks per year is $1500.
As for the other things you mentioned...I hate snow, so no skiing. My husband gets sick at theme parks, but we have a connection and are able to get into a local theme park for $5 a piece. Recreational equipment?? We hike if that's what you mean. Restaurants are expensive, and the food is generally unhealthy and underwhelming. We have lots of fun. It just doesn't cost a lot.
Furniture- We have a table, couch, beds, and dressers. What else does one need? If any of them break, we can find super cheap ones used or even free.
Tools - I have tools and if I don't have what I need, I have family members that probably have it.
Clothes- We are fortunate enough to get too many hand-me-downs for my daughter. My sister is always throwing clothes at me, and my work gives me at least 2 new dress shirts a year. Department stores give me coupons for $10 off a $10 purchase all the time, and you bet I find something for $10 or $10.50 every time. I also buy super cheap things on clearance. You bet I grabbed those $2 sneakers that I know my son will need not need for another year.
Auto insurance is part of revolving savings and accounted for in the numbers above.
Food-I think we eat very healthy and balanced. My husband is crazy about things being whole grain, lots of fiber and protein, and healthy fats. I buy very little canned and boxed stuff. If I see a good deal, I stock up. Boneless skinless chicken thighs were on sale for 50 cents a pound last year, and I bought 40 pounds worth and stashed them in the freezer. Very little goes to waste. If it doesn't get eaten, it goes in the freezer. Veggie scraps and bones are used to make broth.
Will this budget work forever? No, I have kids that will eventually become teenagers, and then the food budget will need some serious bulking up at that point. Does the $27,000 cover every possible expense that could come up in a year? Probably not, but neither did the $60,000 budget. This is part of the reason why we are planning to FIRE with a higher yearly income (other reasons are inflation and the desire to travel more and have more discretionary income to help our kids/grandkids). Am I pleased with my progress? You betcha!
