The budget has been right there to pick apart for tens of thread entries. I'm all eyes.
I don't normally participate in case studies, but you've intrigued me with your charming demeanor and dashing good looks.
I took the liberty of extracting the running averages for your budget categories from your spreasheet, just to make it easier to comment on.
$2,407.56 Home
$942.57 Kids
$984.67 Bills & Utilities
$1,294.00 Food & Dining
$592.46 Auto & Transport
$268.62 Shopping
$759.37 Business Services
$67.26 Uncategorized
$497.45 Financial
$30.55 Education
$81.00 Health & Fitness
$140.42 Entertainment
$49.50 Fees & Charges
$92.27 Gifts & Donations
$13.69 Personal Car
$0.81 Pets
$280.10 Taxes
$335.11 Travel
My family W-2 income is very similar to yours. I also have three kids, though mine area few years older. Relative to your budget...
We spend about the same on our primary mortgage (plus repairs and maintenance and upgrades), for a four bedroom house in a HCOL area, in the best local school district. On a 15 year fixed.
"Kids" is kind of a generic budget category. Is that for Montessori and daycare? If so, that's not a permanent expense you need to account for past about four years from now. I'd add up the total amount you expect to pay for those services, subtract it off of your net worth, and remove it from your expense report. It's a short term expense, not something you need to support from your investment portfolio.
Utilities for five people in my 20 year old 4 bedroom house in the PNW are about $175/month (averaged out over the year), including water and power and gas and garbage and sewer. It might be 80 higher if we didn't have solar panels. How are you spending over five times as much as I am? Does Texas require constant AC for six months of the year, and then constant heat for the other six months? Utility bills are mostly a function of climate, but yours are REALLY high.
You spend $1294/month on food, and we spend approximately half that. But we do family dinner together most nights and save dining out for special occasions like birthdays and report cards and family visits and nights when we're short on time, which works out to about once per week.
You spend $592/mo on auto. We spend more like $350, mostly gas for our enormous late model American made SUV.
Those first four categories alone look like you are wasting about $30,000 per year that my family is not, and my family already wastes a ton of money on stupid stuff.
Continuing down the list, you're spending another $4000 per year on "shopping and uncategorized" expenses. That looks like pure waste to me, but maybe you feel like some of that is vital? At the very least, I'd recommend reclassifying all of those expenses into the budget category they actually belong in (personal care maybe?) so you can figure out where you're leaking dollars.
Is the $497 for "Financial" like IRA contributions or something? If so, that's savings and not an expense and I wouldn't list it here when trying to figure your expenses, because you will discontinue it when you retire and start living off of your assets.
$50/month for Fees and Charge sucks. Are you bouncing checks to incur that kind of penalty? About every six months I accidentally get a $2.50 ATM fee and it fucking pisses me off every time. I would tear some shit up if I was paying $50 bucks a month for no good reason.
What's included in your $759/month for Business Services? If that's expenses related to running your RE empire, then those should come out of your RE profits and be figured as a cost of doing business, not a personal expense. If it's stuff like your gardener and your maid, well, then you need to decide how many more years you're willing to work to avoid mowing your own lawn and mopping your own floors.
The rest of that stuff looks pretty decent. I wouldn't pay $81 for a gym membership, but maybe you have a really great trainer who has you in the best shape of your life and is totally worth $81/month? Because if not, then for less than one year of gym fees you can assemble a totally kick-ass system of free weights for your home, allowing you to lift whenever you want.
I think that the $5700/year you're spending on travel and entertainment is a totally reasonable amount for someone in your (our) tax bracket to spend. Yes it's wasteful, but the added utility of investing the extra few grand you could get by cutting back on these expenses probably isn't worth the lifestyle modifications for someone who is already saving and investing so much. The above-mentioned $30k/year, on the other hand, feels like a more significant figure that is providing you with less value.