Having a more complete breakdown of the 3k monthly budget would be nice. I'm guessing you guys could get that down a bit, even with the extra principle payment.
With your income jump next year you guys should easily be able to save 6 figures. Get your expenses down to around 20k and you can be probably be FIRE'd in 5 years.
Here is a more complete budget breakdown:
Mortgage: 690.00 with 300.00 Extra principle
990.00
Me and My Wife Each Take a personal allowance of 100.00 per week. This is a way for us to simplify our budget without itemizing a ton of small categories. This covers: gas; eating out; clothing; hair cuts; etc..
800.00
Utilities: 300.00
Groceries: 600.00
Pet Food: 100.00
Phones: 130.00
Internet and Streaming Subscriptions: 60.00
Also, various expenses such as Trugreen, Termite bond, and Car maintenance: annually apprx. 1200.00
Also, likely to add about 9k for not budgeted expenses, such as vacations, Holidays, etc....
If you really don't want to write all your expenditures down, the allowance isn't a bad alternative, but breaking things down into more specific categories does more than just give you a history to look at later. The real benefit I get from writing down every expense comes from the mental exercise of just doing it. I thought I knew where my money was going as I've always been frugal and paid attention but after I started accounting for every little thing, my spending habits changed without even trying.
To comment on utilities we probably need them broken out. Is that mostly electricity? Do you have gas? What kind of HVAC system? etc.
Grocery spend is high for a couple, especially if you're in a LCOL area. We spend $250/month for 2 people and we're in a MCOL area, although with the type of groceries we buy prices probably don't vary as much by location. Lots of good resources on here already so I won't go into detail but I'm guessing at $600 just switching to some generic products will probably make a big difference. Oh, and do you include alcohol as groceries? Highly recommend breaking that out into it's own category if you drink.
$100 for pet food seems high but again, need more info. How many, what kind, special diets, are you including all pet costs or just food.
Phones, for two people that seems high. Again, plenty of discussion on this topic and I'm no expert but I've researched options that would work for me if my current family plan situation ends. $20/month without data and $40/month with data shouldn't be hard to find.
Some people pay $60 for internet alone due to lack of options so that doesn't sound too bad. I wouldn't worry about canceling streaming services unless you want to cut back on TV watching or if the baby forces you to do so.
Is Trugreen a lawn service?