Off the top
-Lower your grocery bill to $500 for starters
-Lower your blow money
-If the satisfaction you get from charity > time to FI, then you are totally justified.
My advice is
1. yes its depressing to count the number of years, count it once, accept it, and then decide to live your life.
2. Dont upgrade anything (home included) and calculate how long it will take you to FIRE. Then do the math with the upgrade.
3. The journey is also important since this is a long time horizon, put your savings on auto-pilot, and go do fun things, learn, try not to obsess.
4. Revisit your non-negotiables - weddings, gifts, groceries, birthdays every damn thing you thought was previously non-negotiable.
5. Try out "projects" with your family - camping, "no eat out week", "no shopping month", "no trash week", keep it interesting
6. Keep increasing your 401k contribution by 1% every 2-3 months and see how your family does with the change
I guess it may not even be that I want to retire. I think it's just that I want to do something where I'm more in control. I'm just too much of a fraidy cat to do it.
If you don't want to sacrifice in order to achieve financial independence, that's fine. Plenty of smart, happy people live every day without pursuing FI. Generally on this forum it's a high priority, but you need to decide where it sits in your list of stuff you want to do.
Oh, I want financial independence. I just don't want to retire early (in the everyday sense of retirement). I realize FIRE to most people doesn't mean stopping working, it means doing what you want. And that's what I care most about. Just don't know exactly what I want to do.
In that case, the obvious things to cut (or at least categorize more specifically for further review) are:
-$800 groceries (multiple kids...plus we like to eat very well)
-$400 blow money ($200 each and includes eating out as a family)
-$500 charity (non-negotiable)
-$150 miscellaneous (diapers, oil changes, toiletries, etc)
-(plus we usually have things like weddings or unexpected expenses of a hundred or two)
-$25,000 car 1
-$160/month lease payment on car 2 (won't count this in net worth, but it's kind of a liability)
Remember to look at these things long term. For monthly expenses, multiply by ~173 for value over 10 years compounded at 7%.
If we list the cost of each of these expenses per decade, it may be easier to see the value in cutting them back.
-$138,400 groceries (multiple kids...plus we like to eat very well)
-$69,200 blow money ($200 each and includes eating out as a family)
-$86,500 charity (non-negotiable)
-$25,950 miscellaneous (diapers, oil changes, toiletries, etc)
-$34,600 (assuming $200/month)(plus we usually have things like weddings or unexpected expenses of a hundred or two)
Grand Total: $354,650
If you cut each of those things in half, that's an extra
$177,325 after tax dollars you will have in 10 years. At your current savings rate, that's 3-4 years of savings.
-Cars I didn't do this calculation with, since it's a more complicated equation. I'd consider downgrading the $25,000 car though.
Food for thought.