Hello, first time poster, mid-term lurker. I'm seeking to embrace the low expense lifestyle and hopefully shoot for an FI early retirement. I've attached a copy of the cash flow worksheet to this posting so you can get a sense of our vitals. Would greatly appreciate your advice and wisdom regarding our financial situation and a couple questions. First, some basics (all monthly):
Life Situation: MFJ; wife and I are 31, we have a one year old son; live and work in northern Virginia (suburban Washington, DC); I am an engineer with the federal government and have been working full-time for about 5 years straight out of school; my wife doesn't work outside the home.
Gross Salary/Wages: $8929
Pre-tax deductions: $555 total --- health insurance ($356), vision/dental ($116); healthcare FSA ($83)
Other Ordinary Income: None
Adjusted Gross Income: $8374
Taxes: $1948 total -- FICA ($519); Federal ($880); State ($428); Medicare ($121)
Current expenses: $3929 total
[Roth TSP: $446 (employer match @5% = an additional $446 in traditional TSP)]
529 plan (Utah): $100
Rent (one bedroom apartment): $1551
Utilities (water, trash, electricity), Internet: $200
Cell (AT&T, 2 lines): $125
Insurance (Renters, Life, Health, Dental, Vision): $570
Car maintenance, gas, registration: $104
Groceries, dining, household, beauty, pets: $1047
Healthcare: $100
Misc (travel, computer, entertainment, gifts, clothing): $125
Assets: $208,000 total -- $108,000 in the bank; a couple paid for cars worth about $20,000; $80,000 in federal gov TSP (Lifecycle 2050 fund; about even split between roth and traditional)
https://www.tsp.gov/InvestmentFunds/FundOptions/fundPerformance_L2050.htmlLiabilities: None.
Specific Questions:
1. To me, it feels like our taxes and expenses are bloated. Is that accurate in your view, and if so, what are some of the more obvious things we can cut back on?
2. Are we saving a decent amount of my income? What should our goal be?
3. Real estate in our area is kind of ridiculously expensive. Should we be saving for a down payment or just planning on renting at least until retirement?
4. Related to #3 above, you'll notice our rent is high and will only get higher with inflation and as our family grows. Is our best bet for FIRE to get out of the area and work somewhere else? Where is a good low cost of living area with a thriving biomedical engineering/research/care industry?
5. If you were in my position, what else would you want to know?
Thank you very much for your time and attention! ~ Bryan