I've been reading MMM for a year now, and I'd love more investment/savings information in regards to our current situation.
I (age 32) work full-time and my husband (age 34) stays at home with our children (ages 5, and almost 2), he also bar tends 2 shifts a week.
The details are as follows:
Income:
Myself: 3,000 take home
Husband: $800 take home (varies)
Total: $3,800
Current monthly expenses:
House mortgage (includes taxes/insurance): $1500
Utilities (gas/elec/water): $150
Phone: $55 (for two, just switched to Ting from Sprint)
Netflix: $7
Internet: $50
Car insurance: $250 (paid in full every 6 months)- paid with extra bi-weekly pay, not included in income.
Heating: $1500 (for 2014 winter on old furnace, which we will change at some point in future to gas furnace)- paid with extra bi-weekly pay, not included in income.
Variable:
Groceries: $500 (includes organic veg/meat, and alcohol) --this will decrease in summer due to garden. We have an herb/tomato/salad garden at home and a free plot in a community garden in town, where we grow our larger veg). Working on canning more this year.
Gas: $200 (2 cars; I just started biking to work, this should decrease a bit)
Misc: $200 (includes medication, riding/barn fee, etc.)
We put all expenses (that we are able) on a CC and pay off fully each month. Rewards go to help pay for Christmas/gift expenses. I create many gifts, to hold down costs.
Total: $2662
Savings: $1138
Assets:
401k: $35,000 (currently contributing 6% with 3% match)
1999 Range Rover: fully paid. Worth: 6,000
2000 Saab 9-3: fully paid. Worth: 4,000
House: value: 310,000 (purchased for 289k, with 58k down)
Savings: 10,000 (should I move some of this automatically to invest?)
Investing: 10,000 in VFINX-- is this the right place to be?
Bonds: 4,000 in EE bonds, at various maturation rates from 2018-2023. Earning 4% flat. Move these? Where to?
Liabilities:
Mortgage on house: 225,000 (30 year 3.2%, 29 years left)
My question is: Where should we best allocate savings? We do have some home improvement projects (insulation, flooring, conversion to gas furnace, etc.) that we'd like to do in the next 1-10 years, but nothing is a huge rush (insulation excepted), and we DIY what we are able to keep costs down. We currently have a 10k emergency/liquid fund. Should I start an auto-invest with our monthly savings? Is the Vanguard index fund a good one to put in and forget about?
Now to throw a (great) wrench in the works, what would you do differently if a 100k gift came into play? This will happen, the timing is the variable. I'd say it's within the next 10 years. Would you invest? Throw on mortgage?
*I'm not specifically looking to RE, but would like the option and so have been working to optimize our income/spending/investments. Our income might increase when both kids are in school with my husband working more, and my position will definitely increase in the next 3-5 years. I feel like we're doing okay with spending, but am open to all suggestions.
**Sidenote: Our mortgage may seem large, but is actually a very inexpensive housing situation in our HCOL area (avg house price 500k). We decided to pay more up front (and bought a lovely house ("needing" only superficial renovations) in order to be very close to work/family/friends. This is the one thing that won't change, for now.
Thanks in advance for any/all advice and suggestions!