My wife and I relocated from Hawaii to Colorado to be closer to her family. I took a pay-cut from $75,000 to $52,000. My wife was a substitute teacher and made $7,000/year. My wife is not currently working, so our total family income went down by $30,000. We have a 2 year old and my wife currently does not work. We have been in Colorado since August 15th. We currently rent, but we are scheduled to close on a house in two weeks.
My wife would try to get a "fun job" working 15-20 hours week (nights and weekends). I work mostly M-Th (7:30-3:30). Based on $12/hr. she would make around $10K to 12K/year. Minimum wage in Colorado is $12/hr. starting Jan 1, 2020.
I feel like we can live on our current income, but my wife wants more spending money. I teach college and get the summers off. If we were ever in financial distress, I could get a 2nd job. However, I do not want to get a 2nd job so my wife can buy more clothes. If my wife wants to get a job so she can buy more clothes, I do not have any objections.
Current Income:
W-2 Income: $3,000/month (after taxes, insurance & 403B contribution)
Cash flow from 3 rental properties: $1,500 (after vacancy & repairs)
total monthly income: $4,500
Current Expenses:
Primary Home: Mortgage/Utilities/Maintenance: $1,700
All Food (Groceries & Restaurants): $900
Transportation (Gas & Insurance): $500 (2 cars & RV)
Fun Money (Clothes, Snowboarding, Golf): $350
Travel: $250 (RV camping and plane tickets)
Student Loan: $200
Kid (Diapers, Clothes, Activities): $200
Health Bills (Doctor Visits & Prescriptions): $100
Giving (Church & Birthday Parties): $100
Total Expenses: $4,300/month
Total Savings $200/month
Based on our current budget, we would only be saving about $200/month which would realistically go toward the purchase of a future car. However, I have a mandatory 19.15% contribution to my 403B, which is currently 10K/year. Across our 3 rental properties and primary home, we are paying down the principle by $1650/month, which is around 20K/year.
Current Net Worth: 710K
Liabilities
30K in student loan debt
Assets
600K (real estate equity)
90K retirement accounts
50K cash
I currently have 50K in cash as a real estate emergency fund, just in case. I have been a landlord for 12 years. I realize that 50K might be too much cash, but it helps me sleep at night. The rentals are not stressful. I love doing it.
If my wife got a part-time job, I think it would be an extra $650-$800/month after taxes. Can we survive on our current budget or should my wife get a 2nd job to have a bigger cash flow buffer and give her more spending money?