Topic Title: Downpayment or pay off car
Life Situation: MFJ I am 26, and my wife is 25 we have 2 children a almost 4 year old and a 5month old. Live in Southeast MO. Been reading a year or so but just now starting to implement some things not looking to go full out but would like to start doing a little better.
Gross Salary/Wages: Hard to determine it fluctuates depending on Bonuses received. My base hourly is 14.18$ we normally end up with between 150%to 200% more than that every week depending on how much we run. (i work in a steel mill) Nucor steel is the company i work for. my first full year there i made 80k and last year i made 102K. this year i am on track for between 90 and 100K. Every 4 weeks i get a 36 hour check then the next 4 i get 48 hr check, and i never have the same check twice its all dependent on our weekly bonus which is dependent on how much we run.
Individual amounts of each Pre-tax deductions: 96$ a week for health care, I currently max my 401k i just did that for the first time last year. No IRA or HSA, FSA or anything like that.
Rental Income, Actual Expenses, and Depreciation: I have a rent house from when i was stationed in NC. it generates 13,200$ income and actual expenses are around 15-18k. Have never had to pay taxes, no major repairs, and has never been vacant in 4 years with three different renters.
Adjusted Gross Income: Again hard to determine since my paycheck is different every week. every 4 weeks i go from getting a 36 hour check to a 48 hour check.
Current expenses:
Currently Rent:650 a month
Car payment 351 5.99% interest rate(i know)
groceries 300$
gas 180$
electric 150$ sometimes it not this much but never over this amount
water 70$
netflix, itunes 20$
cell phones 150$(i know working on this too)
gym memberships 80$
car and renters insurance 128$
internet 80$
so around 2200$ a month, usually save whats leftover( this is fairly new thing before we were just spending what was left as we saw fit). saving around 1000 to 2000$ every month depending on how the paychecks fall every week.
Expected ER expenses: havent quite figured this out would like to think i could keep current rate or lower.
Assets: Amount & description - old TSP from my time in the service 10k, have around 72K in current employer 401k. and 17K saved in cash. also have a savings account just for the rental house with 10k in it. My 401k and tsp our 90% stocks and 10% bonds.
Liabilities: Nissan Rouge currently owe 15, 586$. payment 351$. 5.99%
Specific Question(s): Currently me and my wife are really wanting a place of our own instead of renting which we have been doing for last 3.5 years or so. We originally had the intention of using the 17k for a down payment but have been toying the idea of getting rid of the Car payment this is my main point in posting this is to get some advice from everyone. I know i should be saving in a IRA for both me and my wife, i just haven't done it yet. Like i said i just now a few months ago started implementing some cost reduction and savings plan. please feel free to beat me up as much as you want looking forward to it. Thank you very much for any replies in advance.