Hi Regambale,
I can only second what the other posters have said. If you have only just "made changes that brought us from spending more than we bring in, to about breaking even" you have a huge problem on your hands. Spending more than you are taking in, or even just spending exactly what you bring in (living paycheck to paycheck) is dangerous for your family's future. I know you know that, I can only assume that is why you've come to this particular forum to ask for help.
Your rental income should cover your mortgage and your student loans (after the 700 expenses) with the numbers you gave. You need to be living within your means. If you just trade those assets (the rentals) for zero debt it will be very easy to find yourself in the hole overspending again, because that is where you are right now. changing your balance sheet around will not change the patterns you have in place.
I completely understand that you cannot make all of the financial decisions. I have a husband too, and one that likes to spend money and easily feels deprived. We don't always see eye to eye on the big picture. It takes a lot of open and honest non-judgmental communication and constant reevaluation for us to make it work. I wish you the best of luck moving forward with a partner that is not exactly on the same page as you.
I have one small child. I know our lives changed so much when our miniMEJG was born (almost 2 years ago) and it changed our finances a lot too. I understand the costs in money and time one child takes and I can extrapolate to three, though I know I don't truly understand nor will I till I get there.
I have a lot of sympathy for your position. It's a tough spot - but none the less something
MUST change if you want your family to be financially stable.
There are two main things to start with. One simplify and cut costs on everything you have control of. Second get your husband on board.
Cutting costs:
you've made a great start! keep it up. If you do not need (food sheather safety are needs) do not buy it. Period. Sell, or donate things that you do not use. Clothing, accessories, children's toys etc. Simplify your life down. Focus on doing more rather than spending more. Read the articles on MMM, the simple dollar and brave new life for budget tips and tricks.
Also, track your spending. Do this with excel, or a homemade budget, or Mint. I just started using Mint and it is GREAT- it will even categorize your spending via your credit cards well. Once you know exactly where every dollar is going you can see where to save.
Get your husband on board:
Here are some blog posts that helped us (plus a new one!!)
http://www.thesimpledollar.com/2007/01/31/31-days-to-fix-your-finances-a-wrapup/http://www.bravenewlife.com/02/how-to-get-your-significant-to-embrace-a-brave-new-life/http://www.mrmoneymustache.com/2011/04/25/having-the-talk-with-a-current-or-potential-mate/You know your mate best. I can get my hubby to try things for a set period of time. So saying to him, let's not watch TV for a week or month and see how it feels, or let's not buy anything processed for a month, or lets try to see to eat through the pantry etc works for us. A set period of trial time and then reevaluate.
The other thing that was HUGE for us, in fact instrumental in even getting Mr. MEJG to try things for a week or month was understanding our goals. What does our ideal life look like? how can we get there? Our ideal life does not = 60 hour work weeks and someone else raising our child, so FI is something we are working on working towards. The 31 days to fix your finances series REALLY helped my hubby a lot.
I think more frugality and a sustainable lifestyle are really what you need. Not trading two assets giving you a very reasonable rate of return to supply your current unsustainable lifestyle.
Best of Luck!!!