About us
I have been following the blog for a year now. I’ve made a lot of improvements to cut cost and pay off debt. My wife and I are 37yrs old. I work from home and my wife is a stay at home mom with our 3 kids (1,3,4). My wife plans to go back to work part/full-time in 1 year. Our plan is to semi-retire in 10 years.
Income - Monthly $6,100
After 401k contribution, Taxes, Healthcare, dental, vision
Expenses
Mortgage $854
Escrow Tax $224
Mortgage Insurance $96
car insurance $36
Student loan $220
Internet $35
TV $27
HOA Monthly $150
Escrow - Breakdown below $1,100
Mobile $147
Electricity $111
Heat/Oil/Gas $30
Water/Sewer $50
Groceries $1,170
Meals Out $114
Beer & Wine $34
Car Gas $75
Coffee Shops $22
Household products - cleaning, baby items $80
YMCA $75
Total Expenses $4,650
Savings - Monthly $1,450
Escrow - Variable Expenses
Home Warranty Appliances $375
Extra Mortgage Payment $900
HOA Yearly $850
Garbage $180
Investing Subscription $600
Homeowners Insurance $319
Auto - Oil Change $128
Auto - Repair Emergency $500
Car Tax $130
Insurance - Life $1,010
Insurance - Disability $1,042
Medical Expenses - Health Savings Account $2,400
Vision - Contacts $178
Haircuts - Wife $154
Haircuts - Husband $60
Tax Preparation $230
Golf $500
Clothing - Family $900
Shoes - Family $210
House Maintenance $1,066
Gifts - Family, kids, bday parties $1,000
Children Activities $500
Total Escrow - Year $13,232
Monthly Escrow $1,103
Assets
401k - Company Sponsored $36,000
IRA $58,000
Taxed Investing account $6,500
Savings $12,000
Liabilities
Student Loan - 5.25% $6,500
House - 30yr 4.35% $168,000
Job
My job is not too stable lately. I’m worried about getting laid off. I want to make sure I have enough reserve savings to live off for 3-6 months if I need to look for another job.
Home
We purchased a 2 bedroom townhome 1,200 sq ft, last year for $180k, 4.35%. It’s a great neighbor, good schools but HOA fees are high ($150/monthly + $850/yearly).
Insurance
Life - $1million policy on myself, $250k on my wife
Disability - $2k a month if disabled
Spending
We’ve made a significant cost cutting and are now saving. We have a lot of healthcare cost this year just from normal visits and new baby.
Car
We have a 2004 caravan, which I bought this year in cash.
Retirement funds:
401k – I’m putting 15% of my salary
IRA – not contributing but its invested in ETF’s
Taxable investing account – invested in ETF’s
Questions for readers:
1. How can I cut more expenses? We probably can cut the grocery and meals out. My wife cooks a lot but we need to eat out once in awhile to give her a break.
2. How much should I have in savings reserve?
3. Should I pay off student loan with savings or taxable investing account?
4. Mortgage – we plan on making an extra mortgage payment per year. But we also need to pay down around $15k on the mortgage to get rid of the mortgage insurance payment.
5. Retirement – If I want to be FI in 10 years, should I max out 401k, then contribute the rest to taxable investing account? Or should I also max IRA out? I can also max out HSA and invest that.
6. Credit Card – We want to do some travel. Is it worth getting a travel points card and use this for all expenses to earn points?
7. Should I increase Life and Disability insurance?
Thank you for your responses!