Age: 33 this month
Stay at home wife (29) with 2 year old and one expecting in March
Florida (No state tax)
Income: Gross income - $30,600
Adjunct pay for 4 courses a year: $1800 each = $7200
Total income: $37,800
Net income: $32000?
Current monthly expenses:
Car insurance (2 cars - Hyundai Elantra and Honda Fit) 70
Health Insurance 276
Car Registration 6
Gas 75
Car maintenance 100
HOA 44
Home insurance 109
Home tax 109
Utilities 235
internet 43
groceries 400
Haircuts 20
Dry cleaning 5
Misc 300
Medical $50
Total: $1842
Expected ER expenses: None?
Assets:
Monthly pay: $2666
House - Paid off mortgage in slightly over 2 years. House bought for $118,000 as foreclosure. Zillow says its worth $168,000 now, but I doubt it's that high. Maybe $130,000?
VA disability: $133 a month
TSP - $5000
Work 401b - $22,000 Fidelity (98%ish in stocks) - My employer contributes 7% of my income toward retirement (currently $2142).
Vanguard Roth IRA - $10,900 VTSAX (100%)
07 Honda Fit Sport Manual - paid off
09 Hyundai Elantra Automatic - paid off
WIC and Medicaid for children
Liabilities: Credit card bills that I pay off every month (All rewards cards)
No debt
Specific Question(s): I don't make a lot of money, but I've always been frugal and my wife is frugal. My wife would like to go back to work, but this probably won't happen for another 5 years. However, I'm hoping to contribute at least $5,500 into my Roth IRA. I just started adjuncting at my school last fall, but I think I should be able to teach 4 classes a year. I will also start my PhD this May, but my school will be basically paying all of the tuition. I just need to pay for the expenses for my annual visit to the UK to meet with my supervisor. If I can get a college teaching position one day, I wouldn't mind working until I suddenly die while lecturing ;p. The leadership at my school likes me and several (even the provost) said they'd like to see me teach here one day. But even if not and I stay in my current position, I wouldn't mind doing this for another 20 years. However, I'd like to have the security of financial independence by the time I'm 65 (earlier the better of course). If I contribute $5500 every year and my stocks grow 7% every year, I should be close to a million by the time I'm 68. This is also not taking into account my wife going back to work one day. Do you guys think we're doing well? One thing we will not give up is two cars. However, I'm hoping that we can hit at least 200,000 miles on both cars, which means our cars should last about 20 years total.
Once my wife goes back to work, I'd like her to maximize her annual Roth IRA contribution as well. We'd also like to send our kids to private school. We are willing to make that sacrifice. Where we are in Florida, we do not want our kids to go to public school and I wouldn't mind retiring later to give my kids a better educational option. My family are immigrants, so I've personally seen and benefited from my parents' own sacrifice for me and my brother.
What do you guys think? Am I doing well? How else can I improve? When my wife goes back to work one day, what should I do to improve my savings? Let's say that my wife gets a job that pays $20,000 a year in 5 years (very conservative estimate. She has a bachelor's degree in English and she'll get a free master's at my school in human services - only one that fits her personality). Do you think we'd be able to achieve FIRE status earlier than 65? If so, how early?
Also, I'd like to be able to eat out a little more regularly once my wife starts working. Right now, we probably eat out once every month or two. When we do, we probably don't go over $25. I know it may be an unnecessary luxury, but with working full time, teaching adjunct (which I can use up my current work time to devote toward teaching so I'm not losing a lot of time), trying to be a good dad, and starting a PhD, going out to eat would be a mental and emotional luxury that I think would be helpful for me.
I would love to hear from you guys, even if it's just an encouragement. Thank you.