Living Well Within Our Means

I’ve been budgeting more carefully this year, not because we’re in trouble, but because I want clarity. The kids are getting older, the expense column seems to grow each year, and I want to make sure we’re staying diligent about savings and long-term goals.

I once heard a rule of thumb that your mortgage should be no more than 25% of your income. In Northern Virginia, where housing prices are steep, that isn’t easy. But back in 2010, before kids, we bought our townhome conservatively. It’s smaller than many of the homes nearby, but over time we’ve shaped it into a place that feels just right for us.

We built a large patio where we can gather around the fire pit and make s’mores, added a deck off the kitchen for grilling and dining al fresco, and even converted one side of the garage into a batting cage. I carved out the basement as a listening den and office (I wrote more about that here). When the kids were younger, we loved being able to sit on the patio while they played at the neighborhood playground we can see from our yard. We never put up a fence, unlike most of the townhomes around us, which gave the space an open feel, almost like a big backyard that I never had to mow. Cozy? Yes. Enough? Absolutely.

When COVID hit, we renovated our master bathroom. That project made my wife happy, and it was paid for in cash. No home equity loans, no new debt. We simply waited until our “home renovation” bucket had enough, and then we moved forward. That patient, cash-first approach has become our rhythm.

In fact, that’s the way we handle most of life’s big bills. Our credit union allows us to keep multiple accounts with no minimum balance, so every paycheck we spread our money across different buckets: property taxes, car maintenance, doctors, home renovations, Christmas, and vacations. It’s not “if” those expenses will come, it’s “when.” And when they come, we’re ready.

Looking at our numbers this year, 57% of our income goes to spending, 27% to savings, and 16% to debt (mainly the mortgage, since we own our vehicles outright). I’m proud of that balance. It’s proof that we can live well within our means while still planning for tomorrow.

One of the biggest buckets for us is vacation. We set aside money every check because we want to show our kids America, the National Parks, the small towns, the places that shaped me when I was young. These aren’t just trips; they’re investments in memories and perspective.

Someone once told me, “Spend money on experiences, not stuff.” That’s become a guiding principle in our house. Experiences are a yes. Things are a no.

It keeps our choices simple, our budget aligned, and our home, small as it might look on paper, big enough for the life we want to live.