Been lurking for awhile and want some advice on how I can be FI in less than 12 years or if I'm currently on track. Don't necessarily want to stop working but I would like to know I have the option and that myself and family are financially secure.
Life Situation: me 38 wife 39 with 2 kids (1 and 5) - Med/High COL area in the southeast
Gross Salary: ~$150-160K Combined (I'm at $85k wife at $70K or so my wife's income varies a bit but that's about average)
Net Salary: ~$90K ($7,500/mo) Deductions: Medical, FSA, Dependent care, taxes, 403, 457, fsa
Including employer matches about $40K goes into retirement accounts (403,457, cash pension)
Other Income: Basically n/a
Current Expenses:
$1,875 housing (mortgage, taxes, insurance, HOA) - $1,300 P&I roughtly
$500 utilities (gas, electric, internet, tv, phones)
$800 groceries
$800 auto ($200 and $300 loans, gas, tolls, insurance)
$150 restaurants
$500 shopping (gifts, clothes, hobbies, etc.)
$250 home maintenance
Total ~$5K/month
We've also been doing some updating to our house (bought a foreclosure a few years ago) that's not included in the above numbers. I would expect will spend about $10K per year for the next 1-2 years fixing issues and updating.
The difference of $2.5K - $410 college savings, $200 vacations, the rest goes into savings to cover unexpected expenses, home improvement, or fund a Roth
Assets:
Home: $470K
Retirement Accounts: $270K ($40K of this is in Roth)
Cash $60K
Cars $15K
Total $815K
Liabilities:
Mortgage: $269K (4%)
Car1: $5.5K (2%)
Car2: $10K (2.5%)
Total: $284.5K
Net Worth: $530K
Looking to be financially independent by the time we are 50 or sooner (wife would like to stay home with kids asap). I'm not necessarily looking to quit working until mid-late 50s but I do want to know that we are financially set by the time we are 50 in case something happens with our jobs, health, etc. By my calculations I would need $1.5-2M in today's dollars depending how much cushion and how much travel, hobbies we would want to have.
If I left something out let me know. Thanks.