Looking for advice on how to meet our goals and if we need to get more drastic. Lurked here a while, but still pretty new to this so be kind. :)
Situation: Married, in our 30s, one young child
Goal: Semi-Fire in 2023 when husband has 20 years service in railroad. We would like to reduce work at this point to a more part time basis. We both like our careers, but the hours are brutal and we want more time as a family.
Net Income (after taxes/insurance/401ks/railroad retirement/union dues)
His: Average $3,000/month
Hers: $3,232/month
Side business: Between $1,00-1,500/month
TOTAL: $7,232
Home:
Worth approx. $215k and owe $144k (4.75% 30 year, have paid extra principal previously to shave off about 4 years so far)
Vehicles:
Car - paid for worth $5k
Truck - worth $40k owe 28k at 1.99% (truck is used for side business) - Our only debt besides house and obviously not mustachian. Intend to pay off and keep 10+ years (diesel).
Savings:
Emergency fund: $10k
His 401k: $86k (adding 10% plus a 4% match)
Her 401k: $44k (adding 8.33% plus a 4% match)
Expenses:
Mortgage/taxes: $1,500 (property and school taxes are $6k/year)
Day care: $892 (will reduce in 2018 when child starts school)
Cell/Trash/Electric/Dish/Snow plow: $350
Groceries: $450
Eating out: $75
Insurances: $250
Heat: $200
Gas: $300
Truck payment: $551
Pets: $50
Clothing fund: $30
Vehicle maintenance fund: $50
TOTAL $4,698
We easily have $2k-$2500 excess funds per month that we need to efficiently allocate. Previously we have been using this money for paying off debt, boosting our emergency fund and putting some on the mortgage.
Current short term plan:
1. Start a small 529 ($100/month)
2. Up 401k contributions to 12%. (Should we instead push closer to trying to max these out?)
3. Put excess on mortgage with goal to have it paid off by 2023 (about $1000/month would accomplish this). I know this is a hot topic of discussion.
What are we not thinking about? What should we be doing?
Paying off the truck aggressively is a topic of conversation as is starting other investment accounts (Roth IRA, etc). We also should be putting aside some funds for home repairs in the next few years, as our house is 100+ years old and needs some work.