Mustachians (I wanted to say fellow Mustachians, but after reviewing my 2013 finances, I can't do it). I found MMM about 6 months ago. I considered my wife and I relatively frugal. No car payments, rarely take vacations (sans the 5 year anniversary trip to NYC we took this year...where we used hotel points to stay for free), etc. But I feel like we're treading water. As background on us, we're 29 and 28, a 2.5 year old daughter, and another baby due in February. I'd love to FIRE by 40-45, but just don't see it happening. My wife is a stay at home mom and we love that and is important to both of us (until the kids are in school, then I suspect she'll go back to doing something. She was/is a teacher).
My question in this case study is really simple. Where can I trim (I know a lot of the answers, but I need somebody to punch me in the face so it hurts)? What are my hopes for FIRE?
Income: $61k annual (gross) ($47k net or thereabouts). Or, more relevant to the conversation net pay of $3925/month.
I'll give a pretty detailed breakdown of expenses. All numbers are actual numbers based on the first 11 months of this year and numbers are per month averages.
Charity: $140
Food:
Groceries: $598 (I know! We're shocked. We generally work hard to buy cheaply, buy real food, etc...we did just buy a half a hog for $450)
Restaurants: $139 (slightly inflated by treating all of my moving help to food when we moved in August...also ate out more before and after move while boxed up)
Coffee: $83 (no excuses. This is shocking to me. Somebody give me a punch hard enough to knock me out).
Party food (food we buy to throw dinner parties): $15
Housing
Mortgage: $984 (includes PMI)
Electricity: $130 (running about $110 in the house we're in now)
Water: $36
Phone: $72 (this is for both wife and I, unlimited talk, text, and data)
House Maint. & Repair: $56 (repainted house when renter's moved out and we moved back in)
Cable & Internet: $69 (cable is going after the Olympics in February)
HOA Dues: $16
Netflix: $8
Personal
Medical: $30
Gifts (bday and wedding): $30
Misc: $306 (this is the catch all...household items, random expenses that don't fit a category, fees, etc...and I know...it's high)
Clothing: $25
Haircuts: $22
Pets: $101 (is there such a thing as a cheap pet?)
Daughter's "stuff" (clothes, diapers, wipes, etc): $26
Fitness: $68 (this is basically zero now...I built a garage gym in our home for $750...now two guys are paying me $20/month to use it...my costs are about $10/month here)
Books: $5
Travel (mainly to weddings): $45
Coaching $75 (I'm working toward becoming a personal trainer as my side hustle...I've hired someone to work with me on my fitness and to walk through the process of getting that side hustle going)
Recreation
Discretionary for him/her: $41
Entertainment/dates: $24
Automotive
Gas: $233
Insurance $103 (switched during year...now $59.53)
Repairs & Maint: $36
License & Fees: $29
Other
Vacation: $111 (we took a 5-year anniversary trip to NYC)
Student Loans: $156
Assets:
Liquid/Cash: ~$7,500
403(b): $12,200
401(k): $1,800 (vested)/$2,300 (including employer match)
NOTE: Currently deferring 9% of my gross + getting 3% company match.
Vanguard Roth IRA: $3,400
Teacher Retirement System Contributions (that I need to roll over to 401(k)): $4,500
College 529: $5,600
House: $160k-ish
Cars: 1996 Nissan Maxima ($1k), 2009 Hyundai Sonata ($8k)
Liabilities
Student Loans: $10,900 @ 2.75%
Mortgage: $149,500 @ 4.00%
Questions: Where should I cut? There are obvious areas (coffee anyone?????), but where else should I be trimming? We're committed to 2014 being the year where we try to take our savings rate to 30% or higher (I'd love to get 40-50%, but not sure it will happen). With a job at $61k, with likely steady raises (engineering, stable job, etc), what are my chances of FIREing by age 45?
Thanks in advance for all the input!
Cheers,
Matt