Debts
Car - 27K 2.6% (was upside down and rolled high interest rate loan into car purchase)
Studen loan #1 - 1100 6.8%
Studen loan #2 - 5600 6.8%
CC - 2400 no interest until 6/14
House - 186K 3.65%
House - worth about 225K, last appraisal was in January before market upswing at 210K
401K - 58K
Budget
Mortgage/Taxes/PMI/Insurance = $1,380.00
Cell Phone = $85.00
Garbage = $18.00
HOA = $75.00
Lawn Care = $45.00
Alarm = $38.00
Internet = $55.00
Insurance = $300.00
Car Insurance = $155.00
car maint. = $80.00
med/Dent/Vis = $60.00
Home maintenance = $100.00
gifts = $25.00
Education = $15.00
Business = $20.00
Groceries = $400.00
Gas/Tolls = $280.00
dining out = $20.00
Electricity = $150.00
Water = $45.00
Baby = $250.00
Car = $427
Student loan - $47
Studen loan - $95
My budget isn't the greatest, but I am running pretty slim on most things except the loans.
Stuff that would give me pretty ROI is paying off the rest of my studen loans, but the balances aren't too high anymore. Also, paying down the house until PMI is removed. I'm kind of against this at the moment because I plan on getting a new appraisal in the near future to take advantage of the increased housing prices.
My goal is to save up for a rental at the moment, so I'm trying to find something to give me a tax benefit or good ROI in the short term.
Personally, I would focus more on paying off those student loans because the interest rate is quite high -- 6.8% -- and that is a guaranteed 6.8% savings rate.
Your vehicle expenses seem very high and good place to attack. $155 + $80 + $280 is a lot of money. I also don't see your car loan costs in the line by line breakdown, so that is $515 plus whatever your note is. If you really want to make some fast progress on your net worth, if you have an expensive car, getting rid of it can save you a TON of money. Not only will your car payment go away, you will pay less for insurance and possibly less for gas. Cars can be a huge cost once you break down how much you actually spend on it.
Your cell phone bill is high, but not outrageous if it is for two people. Buying yourself out of your AT&T/Verizon contract and going with an MVNO can save you $50/month.
For your house expenses, I would question your need for outside lawn care and an alarm service. Even assuming the prices don't go up, that will cost you $14,366 over 10 years. (http://mustachecalc.com). $150/month for electricity seems awfully high as well although I cannot comment on the cost / needs in your area.
What is the difference between "insurance" at $300 and "med/dent/vis" at $60?
Cell phone is for 4 people and the bill is usually 67 with taxes and everyone with Ting. The big cost saver is not using any data.
The car note was included, but you are right the costs are high. There are two drivers in the house and two cars. I have looked at my past driving costs and have used those numbers. Some things I am doing to reduce my cost is to work all my hours in 6 days instead of 7. I get paid overtime. Also, I am driving like a granny every I go. Also, by reducing the number of times I drive to work I will save another 15 bucks a month. I currently have Geico insurance, and if anyone has any suggestions on this I am open. I estimated 80 dollars because I will have to get two new tires this year.
I am open to getting a different car. It does seem to be a net worth killer.
I agree the electricity is high and I have been trying to reduce it. The a/c has been run way too low and I'm trying to get everyone in the house on board with operating at a higher temperature.
The lawn care is 17 bucks per cut and I have a quarter acre. If I can find more time, I certainly am open to doing it. I'm getting a masters, working 60+ hours and helping take care of a newborn.
With the alarm I need to pull the trigger and get the 10 bucks a month service with safe mart.
I pay 300 a month for health insurance and then I estimate 60 dollars more between getting glasses, paying deductibles, etc.
