The Family of Five

Names: Jennifer Breitfeller, 32, Christopher Breitfeller, 32, Alex, 6, Emma, 3, and Andrew, 2 Location: Downingtown, PA Occupation: Jennifer is a stay-at-home mom; Christopher is a nurse.

Jennifer and her family live solely on Christopher's salary, so she watches every penny, cutting corners wherever possible. One way she saves: bundling the phone, cable and internet bills because it’s cheaper than paying for each service individually. “I’m also conscientious about turning off lights," she says. "And the AC is set to 78 in the summer, and the heat doesn’t go over 65 in the winter. It’s either warm or chilly in the house, but the kids don’t know the difference.” She’s also creative when it comes to entertaining the family. Instead of spending big bucks on movies, restaurants or theme parks, Jennifer takes advantage of the outdoors. “We go to all the free, local parks to run, bike and hike," she says. "And there are often festivals or parades downtown that are free too.” The family also has an annual museum membership that gives them access to multiple museums within driving distance—and they cook pizza together every Friday night. But some costs are nonnegotiable for the Breitfellers. For example, Christopher has to drive over an hour every day for work, which sucks up a lot of gas. (He hopes to get transferred to a hospital that’s closer to home.) And Jennifer insists on buying mostly organic, all-natural food for the kids—no matter how expensive. “I’d rather pay the farmer than the doctor," she quips. "I think it will help us save in the long run!” What Stephany Says: Their mortgage is high, relative to their income, especially since they live on one paycheck. Typically, I like to see this number at 28% or less. If they qualify for a refinance, today’s low rates may benefit them, allowing the couple to reduce their monthly payment. Generally speaking, spending about 50% of your take-home pay on essentials (housing, basic utilities, groceries and gas) is a good rule of thumb. But the Breitfellers are spending 48% of their budget on housing and food alone. Even though Jennifer is conscious of her family’s grocery bills, I’d encourage her to look at more ways to save, such as community-supported agriculture shares and sites like savings.com. Christopher can also look into ride-share programs or carpooling—even if he drives to the hospital one fewer day a week, it could have an impact on his budget. It is, however, reassuring that Christopher’s employer matches his retirement savings. And Jennifer’s diligence in finding free entertainment options, and keeping discretionary costs low across the board, is admirable. She’s setting a great example for her children that you don’t have to spend a fortune to keep up with the Joneses. I also love the fact that they’re able to save 4%, even though their budget is tight. Many people forgo things like savings, but the old adage of “pay yourself first” is good advice—no matter what your income.