'Year 3 Of following this budget, did not always get it right, but we are closer to staying within budget then we have in the past 10 yrs.': I struggle to stick to a budget. How can I improve my financial discipline and stay on track?

Hey Money Minder,

So, here’s the breakdown of our expenses with 2 kids and 2 pets living at home. It’s been 3 years of budgeting, and we’re doing better at sticking to it (after some past struggles with debt and car repos). I work in tech and usually get a nice big bonus, around 13-18% of my salary, plus a Christmas bonus equal to a paycheck. I use part of the big bonus to pay off debts and add some to our emergency fund, then the rest goes into family savings for random expenses and small emergencies.

Total Debt – $48,000

Car Loan – $17,000

401K Loan – $18,000 (scheduled to pay off by 08/2026)

Student Loans – $13,000

Some other financial info:

401K – $186,000

HighYieldSavings Account – $2,150 (Emergency Fund)

Roth IRA – ~$8,000 (ETF Div & Stocks)

1 House – $295,000 (with $20,000 in CDs)

We know our bills are high, including insurance. Any feedback or advice would be appreciated.

Thanks for any insight,

Response from THE MONEY MINDER:

Hello There,

It’s commendable that you’ve been actively working on improving your financial situation and sticking to a budget for three years now. With two kids, two pets, and various debts, it’s crucial to continue on this path to financial stability. It’s great that you receive bonuses that can be used strategically to pay off debt and contribute to your emergency fund.

Given your total debt of $48,000, it would be advisable to prioritize paying off high-interest debts like the credit card debt. Make use of your bonuses and any additional funds to reduce this debt as much as possible. The car loan, 401k loan, and student loans can be handled systematically based on their interest rates and payoff schedules.

Looking at your financial assets, it’s important to have a robust emergency fund, which you’ve started building with your HighYieldSavings Account. It’s also wise to continue investing in your retirement accounts like the 401k and Roth IRA. As for the house you stand to inherit, it’s a valuable asset that can contribute to your long-term financial security.

Given the high bills and insurance costs you mentioned, it might be beneficial to review your expenses carefully and see if there are areas where you can cut back. It’s always helpful to track your spending, identify any unnecessary expenses, and look for potential ways to save money.

Overall, it seems like you are on the right track towards financial stability, and with some strategic planning and budget adjustments, you can continue to improve your financial situation. Keep up the good work and stay focused on your goals.

Farewell from THE MONEY MINDER.