Life situation
Filing status: married filing jointly
1 dependent, age 2.
28/25 years old respectively.
We live in Texas.
Gross salary/wages
Me: ~$5417/mo ($4875 per month plus $1,000 bonus per quarter plus ~$2,500 commission per year)
Wife: ~$2,430/mo
Pre-tax deductions
My 401k: ~$213/mo ($195 per month plus $40 per quarter plus ~$100 per year)
Dental insurance: $98/mo
Life insurance: $6/mo
Adjusted gross income
$7,530/mo
Federal tax withholding
$500/mo
FICA witholding
$365/mo
Take-home pay
$6,485/mo
Taxes
Federal taxes: $8,800 in 2015
Local taxes: Additional 8.25% on most purchases (included below)
Current expenses
Mortgage, P&I: $691
Mortgage, T&I: $581
Home improvement: $112
Auto lease 1: $317
Auto lease 2: $255
Insurance: $157
Fuel: $102
Tolls: $80
Groceries: $570 (higher than usual because we stocked up for freezer meals)
Restaurants: $46
Fast Food: $34
Coffee shops: $17
Alcohol: $16*
Electricity: $151
Phone 1 (wife's business phone): $57
Phone 2: $27
Internet: $52
Gas: $36
Business equipment: $460*
Business phone payment: $35
Business svcs/subscriptions/software: $15
Health insurance: $509
Gym: $10
Student loan: $333
Shopping misc: $143 (some of this is groceries and baby supplies)
Baby supplies: $143
Clothing: $17
Entertainment: $104
*one-time purchase(s)
Assets
Checking: $2,700
Savings account/emergency fund: $3,600
Wife 401k: $3,830
My 401k: $5,984
Home equity: $35k on a home est at $160k.
Liabilities
Home loan: $122k owed. 3.25%. Currently paying $691 toward P&I (this is the minimum payment).
Student loan: $15k owed. Approx 6% rate. Currently paying $333/mo; minimum payment $250/mo
Phone: $350 owed. 0%. Currently paying $35/mo.
Auto lease 1: $317/mo, ends this August (4 payments left).
Auto lease 2: $255/mo, ends in October 2017 (14 payments left).
So we have about $1,775 left over per month to put to work. Here are the things we could use it for:
My 401k: I currently put in 4% of salary to reap the company's 50% match.
Wife's 401k: Of the $1,775 we currently put in $400. This is very high-yield since every dollar we contribute reduces our tax bill by 15 cents.
Student loan: We owe $15k @ ~6%. Of the $1,775 we're currently putting in $333 rather than the minimum $250. I'm waffling on this one; I hate to carry the debt but strictly speaking the 401k is a better investment.
Saving for next auto: Our car lease is up in August (yes, please line up for the face punches). This will free up $317/mo so long as we have enough to buy the next car outright. Of the $1,775 we're currently putting away $1,025/mo for this. Aiming for a $4k Civic or Scion xD.
Saving for next next auto (yes it's that bad): Once we're done saving for a replacement for our current car we'll have another lease expire in October 2017. In my defense we bumbled into the lease after putting all we had down on a reasonably-priced used car that was totaled a few days later.
0% APR cell phone debt: My wife got an iPhone when her old one gave out via a carrier phone loan thing. We pay $35/mo extra for her phone bill and owe about $300 on it. The phone and depreciation are business expenses.
Other things not listed: I'd be hard-pressed to think of an investment that would pay off better than those above, but if you've got a suggestion I'm all ears.
How would you allocate your money given the above? Thank you.