Background: I am 30, married with 2 kids.
Income: $72,000 plus $7,200 bonus Gross
Current annual expenses:
Charity -$8,760
Mortgage (PIT) -$11,748
Extra Mortgage Payments -$16,000
401k Contributions -$11,208
Total taxes (state, fed) -$5,700
Car Repairs/ Tires -$600
Car Registration -$104
Petrol -$2,160
Oil Changes -$270
Food -$3,640
Kids College Savings -$1,200
Utilities -$3,120
Monthly utility breakdown: ($52 Gas, $67.53 Electricity, $30 Water, $40 Sewer, $17 Trash, $54 Internet)
Car, House Insurance -$1,530
Clothes -$240
Christmas -$600
Other Gifts -$500
Household -$1,220
Cell Phones -$432
Annual Camping trip -$1,100
Annual family vacation -$1,200
Dates -$600
Life Insurance -$349
Hair Cuts -$80
Current annual expenses total: $72,361
Current annual expenses less extra mortgage payments and 401k contributions: $45,153
I figure with the extra mortgage payments and 401K saving my saving rate is currently 37%.
When the mortgage is paid off (see below) my savings rate will be 49%.
Expected ER expenses:
Same as above less mortgage related expenses and add $550 for medical insurance (best price quote from ehealthinsurence website).
Based on the above; annual ER need of $29,505, requiring $737,637 in capital.
Assets:
House worth: $135,000
Savings account: $20,000
401k balance: $89,000
Liabilities:
Mortgage: $57,600.00 @ 3.625%, 15 year fixed
Specific Question(s):
My first goal is to pay off the mortgage: I am putting $1000 a month extra here, along with my bonus (after taxes is $4000), and I plan on paying off the remaining balance when it is 10k with my savings. I should be mortgage free in May of 2016, i.e. 2 years.
After mortgage payoff I will be in savings mode. Should be able to sock away $3,040 a month or $36,480 per year. I calculated my 401k will have a balance of around $123,000 at that point. From the mortgage pay off date, I would be about 10 years from ER or 12 years from today.
Any ideas on how to do this faster? Do my calculations and assumptions look correct?
Any other face punching required?