Ours is just a squeak under 50% of take-home pay. Managing this gets tough. I watch our grocery spending very carefully, buy all resale clothes for our kids, inexpensive shoes for the oldest that get handed down to the youngest, toys from resales and garage sales, etc. I choose our books very carefully and review them from the library first if I can get them (we are fortunate to have a large suburban library system with a great internet setup to draw from), then I look to see if I can save a significant amount by buying them used (these are not curriculum materials with resale restricted); if I have to buy them new, I make darn sure I find the lowest price and I almost never pay for shipping. I'm also careful with our household energy consumption, especially with the heat and AC. Every winter I'm finding ways to make our house leak less heat. We only eat out on very rare occasions, and so far we don't use babysitters because that would become a big expense. Almost the only vacations we take are to visit DH's parents and they help us cover the cost. I hardly ever buy clothes for myself - I wait until someone gives me a gift card to LL Bean and then order what I can use the most. We drive our cars for at least ten years. Right now we have a car payment we are 1.5 years into and I will be so happy when it's done. Our house is very nice but oh I fantasize about selling it when the market comes back and fitting snugly into a much smaller and more efficient home, perhaps in a lower COL area, and maybe having an evening job when our kids are a little older and having extra money to put away.