Hi everyone,
First-time poster, long-time reader. I can't wrap my head around our financials and need outside perspective.
Income:
DH (35 y/o) - $70,000 gross, $50,000 net after 401K, health ins, taxes, etc.
Me (33 y/o) - $10,000 gross - I'm a SAHM to our 3 year old daughter, but freelance on the side.
Total: $80,000 gross, $55,000 net
Current expenses: We're still trying to work out a budget but this is our starting point.
Mortgage - $900 PITI
Student loan - $130
SUV loan - $270 DH adamantly wants to keep this vehicle for its 4 wheel drive (we live in a rural part of the Midwest). I wouldn't mind getting rid of it though, it'll just be a tough sell to get DH on board.
Electricity - $130
Propane - $150
Auto Insurance - $83
Life Insurance - $52
Security system - $44 DH works odd hours so I'd like to keep this if at all possible. We've had some threats made against us from family members no longer in our lives, so the system makes us feel more secure.
Cells - $160 under contract til June 2016 unless we can get someone to take it over
Internet - $60
Fuel - $250
Groceries - $400
Medications - $30
Entertainment - $50
Cable - $45
Daughter's gymnastics - $30
Total: $2784
Expected ER expenses: We adopted our daughter 3 years ago via private adoption. Since we were able to find a birthmom on our own (she was a friend of a friend), then the adoption only cost about $10,000. We would like to adopt again and have, so far, been unsuccessful at finding a birthmom on our own.
To adopt through an agency, we're looking at a minimum of $25,000, possibly up to $35,000 depending on specific circumstances related to the birthmom. Without going into too much detail, I am unable to have children due to health conditions. Adoption is our only option at this point to grow our family. Foster to adopt is not on our hearts at this time - it takes special people to go down that road.
Besides the adoption expenses, I'm always concerned about medical costs for treatment of my health conditions. For the past decade, we've spent anywhere from $3,000 to $10,000 OOP each year for medical - I've had several surgeries. And ironically, that's with really good insurance.
Total: $25,000 adoption plus $5,000 medical
Assets
Truck: $2,000
SUV: $18,000
Home: $180,000
401K: $25,000
Stock: $5,500
Savings: $10,000
Total: $240,500
Liabilities:
SUV: $14,000, 1.99%
Student loan: $13,000, 3.5%
Home: $148,000, 28 yrs left on 30 yr loan @ 3.625%
Total: $175,000
Specific questions:
I'm too emotionally tied to our financial situation and can't make clear decisions. We'd like advice on:
1. Making a plan to cash flow the adoption, ideally within the next 1-2 years.
2. Killing the remaining consumer debt - student loan and car - in that same amount of time.
3. Long-term, setting us up for early retirement. It seems so far off at this point, especially with the mortgage still hanging over our heads and the adoption costs.
Please ask for any clarification. And thanks so much for helping me figure this out!