We've made great progress this past year thanks in large part to the great folks and advice here at MMM - we live on a budget (!), sold off gas guzzlers and lots of random crap, paid off all of our cc debt ($18k), and set DH up with a steady, well paying job that includes health insurance (!) and a pension (!). It is a job that he enjoys doing, is good at, and is willing to stick out for 20 years in order to get the pension (assuming, of course, that it is still there for him at that time). The idea of this pension is huge because we have zero retirement savings right now. (It might be time for us to also consider the 403(b) that is available to him, or our own Roth IRA.)
Here's the problem: The job is in "the city" and the house that we own and live in is in"the country" where he used to work, and the commute, without traffic, is an hour each way. I can't convince him to move to "the city". We have 3 kids under 8, and he likes that we are up here. I would gladly move and consider it an adventure (we both lived and worked in "the city" before the kids came along), but he is dead-set against it.
If moving to "the city" is off the table, in an effort to simplify at least part of our life and reduce the time that the kids and I spend in the car, I would really like to relocate to an area in "the country" that is more walkable and less rural, and is closer to the kids' activities. I'd also love to get a smaller, more energy efficient home. We live in a lovely but drafty old house that costs a small fortune to heat during our long winters. It is around 1600 square feet, 3 br, 1 ba. Our mortgage each month (30 years fixed a 3.85) is 1036, including property taxes. We paid $165k and owe approx $112k. Realistically, if we were to put it on the market today, we could get around $185k for it. Dad's annual salary is $70k, and should go up every year. We are both in our early 40s.
Other than living in our current house, we don't do anything in our town (except go to the library) and are always in the car - to go food shopping, the library, playground, classes and activities (we homeschool), and I'd love to situate ourselves in a location where at least the kids and I have the option to walk or bike to our usual destinations, and where our activities/destinations are within a 10-minute car ride at most. DH's commute from said walkable town would be about the same.
Our remaining debts are student loans: $9000 @ 6.8 (fixed) and 57000 @ 3.5 (fixed). We have $1000 cash for emergencies. Our plan is to get rid of the 9k loan, and we're not sure yet what our plan is regarding the $57k (i.e., whether we will pay it off quickly, or pay it off more slowly in order to invest/save some).
Unfortunately because of our pre-MMM stupidity, ER isn't a realistic option for us, but our goals/priorities include keeping things simple, living a healthy, active lifestyle, minimizing stress, building adequate savings and investments, living below our means, reducing the time that we spend in the car, and maintaining a safe, loving environment for our kids. (I stay at home with them, and that is also our priority.)
So, wise MMM folk, what should our next "move" be, if anything? What would you do if you were in our situation? (Brutal honesty is greatly appreciated.) Stay put and pay down the debt? Sell the house and move to said walkable town and find my 2 br 1 ba "dream house"? Beg DH to suck it up and move to "the city"?
Looking forward to your thoughts. Thanks in advance for your help.