Family Spending Budget Q2 2020

Family Spending Plan (Budget) and Net Worth Update: 2020 Q2

High-level Summary

  • We realized our Coronavirus savings by moving the money from our checking accounts into our savings vehicles
  • Our net worth jumped a whopping 35% and we finally crossed over the 500K mark

Last quarter we pulled our kids out of daycare and we were saving major bucks. However, we hadn’t actually put the money we were saving away. It just sat in our checking accounts doing nothing (cringe). In Q2, we decided to put our money to work by beefing up our barebones budget.

Our net worth is the big story this quarter, but not really. We were finally able to pull past the 500K mark this quarter, mostly due to stock market gains. The S&P hit it’s lowest point of 2020 (so far) on March 23rd. By June 30th, the market had rallied 39%! Its not a coincidence that our net worth has increased by nearly the same amount.

I use Personal Capital to keep track of our spending. Given how many different credit cards we use to manage our household finances, I find that this is the best free online tool available to help me keep track.

Housing, Transportation, FoodTop 3 Spending Categories

Housing, transportation and food represent the bulk of the average household’s expenses. For our family, this trio represented 32% of expenses in Q2.

Groceries continue to be an area of improvement for us. Not only are we buying more than normal because we’re not getting out as much, the kids are also growing and require more intake. Im also seeing a lot more go into the trash which is very upsetting. We blew way past our stated budget of $300/mo this quarter. We decided to increase our budget to $500/mo and will be more diligent about how we shop.

The first two months of the quarter, we didn’t even touch a gas pump, which is amazing. The battery died on one of our cars and I put off repairing it as long as I could before my wife forced me to make the call. We ended up using our AAA membership so I wouldn’t have to step foot into a car care center. That probably came at a premium, but safety first. Overall, transportation was less than 1% of our spending this quarter. SWEET!

Mortgage was unchanged.


Savings accounted for 26% of what we “spent” in Q2. Rather than keep the money we were saving in our bank accounts earning nothing, we decided to shore up the barebones budget we established and put some away in other investments.


Even though we were only paying half of our normal rate for child care while we were in quarantine, it still shows up as a major expense because the rest of our expenses were also low.


We were working toward two goals, establish a home renovation fund and put money away for taxes so we’re not hit with a surprised expense during tax time.

On the home renovation front, my wife has really turned up the pressure lately. “We need to do what we said we were going to do”. So I stashed away a few extra dollars into this bucket so we can finally make some progress on the house.

Regarding taxes, our bill turned out to be better than expected. In fact, we ended up getting a refund from the state. These funds were reallocated into our barebones emergency fund.

Other Bills

The top 5 spending categories represented 75% of our spending during Q2. The remaining 25% goes toward utilities, cable / internet / phone, travel, etc.

Wait, travel? How? The thing is, we were booking flights left and right for places we were going to visit “after the rona cleared out”. Well, the rona is still here, and we are still at home. Most of the expenses we incurred under travel have been refunded or we received credits for future use.

Net Worth Update

As excited as I was to see out net worth cross over the 500K mark, it was still a dull quarter.

Our pretax investments (401K) is where most of our net worth comes from. So it shouldn’t comes as a surprise that our net worth rose in conjunction with the stock market.

Bottom Line

It was a solid quarter for our household from a financial standpoint. We adjusted our budget for the next 6 months to reflect higher spending in certain areas (like groceries) and started incorporating savings again, outside of our 401Ks.

Summer is now upon us and we did not adjust our traveling budget. In some ways, we are still in denial of the current environment we are in. We’ll be sure to bank those savings as well!

Leave a Comment