One Month into MMM, How I'm doing? How can I improve?

[Lowerbills]

First post here, I apologize in advance for the length.  I found this blog and it has motivated me to get my shit together!  Quick summary, used to be fairly mustachian prior to having a kiddo.  Also, used to make more money, have a high savings rate and invest!  Fast forward a couple years, income is down, expenses are up, and savings is basically 5%.  I needed a good gut check.  Glad I found this blog...

Since stumbling across MMM, I've done the following:

Downloaded and installed MINT.  What a great tool for tracking expenses. 
AMEX Blue Cash Preferred - setup and have started using this CC for all expenses.  Gas and Groceries rebates are hard to beat.  No brainer.

Energy Use / Utilities
(Already a no cable, no TV house).
Found and smashed 7 incandescent light bulbs, replaced with CFLs for the time being, one LED.
Reprogrammed Thermostat
Started using different cycles on Dishwasher (light wash, no drying) and washing machine (shorter, cold water)

**Just got my electric bill yesterday and, whoa!! granted, my previous month was very unmustachian, but I literally cut my kWh and water usage in half with just the recent changes I made!

Investing -
Wife and I currently have Roth IRAs as well as taxable investment accounts.  Put a little cash to work last week when the market looked a little ugly.  Longer term goal is basically VTI, VXUS, BND, BNDX, about 70/30 stocks/bonds.  ROTH Accounts are Vanguard ETFs, but taxable accounts still own individual stocks.. Gradually moving towards all accounts being invested in Vanguard ETFs.

529(b) - probably going to set one up for kiddo.

Own one SFR, and goal is to add one a year...  Only been a landlord for a year, but already seeing the benefits of it.

Insurance
Own one SFR
Primary Residence
Two cars (dropping to just liability on one of them ASAP)
Ballon Policy

**Big category where I think there is some money to be saved.  Hard to compare apples to apples the way having multiple policies qualifies you for discounts, but this is high on the list of what to do next.

Car & Bike -
Still a two car family for now, though I'm making every effort to ONLY drive to work.  I love biking, and bike frequently, but my commute just isn't really feasible on a bike... I know, wussypants.  However, I already had a bike trailer for kiddo, and have since used trailer for two trips to the grocery store and it's a piece of cake.  Also, using bike for as many errands as possible that are under ~ 3 miles from my house (including another one today).

What to do next? Looking for some good ideas of what to do next, here's some of what I'm considering.

DIY insulation is at the top of the list, as I know my 1960s house could use some, and possibly some duct work.   Paid for this service at previous home, but stood there and watched the whole process and pretty confident I can do it in a weekend...

Refinance my primary residence?  I'm in a 30 yr fixed at 4.25%... After studying the amortization tables of a 30 yr vs. a 15 yr at 3.0% (mortgage broker friend of mine told me I might be able to get 2.875%), it's pretty ridiculous the interest savings... I'm considering paying down some principle AND refinancing into a 15 yr.  Thoughts on this? 

Lighting - room for more improvement here.  Tackled the easy ones, but now have some research to do on the fancy kitchen and living room lights.  Also, anyone know a good energy savings replacement for Type T10 40W 120V Bathroom lights?  I have two bathrooms, that each have two of these bulbs in identical fixtures, and didn't see a good replacement on first trip to Home Depot.

Solar - Current house I plan on staying in for a long time... I know plans change, but this could be a really really long term one for me, where panels might make sense.. I'm in Texas, and current backside of house / roof gets plenty of all day sun.  Need more research on rebates / upfront costs...  Anyone recommend a site or thread for this?

Groceries - cook at home and generally eat out only about 1x per month.  Since using MINT and actually paying attention, I managed to drop my grocery bill by about 20% in one month.  Have a family member with a Costco membership and planning a trip next month to stock up on shit.  Making a list of household items and drilling down on prices in advance.

Craigslist / Ebay - sold stuff in the past, but know I easily have more stuff I'm not using I could sell.

Cell Phone - Ideas?  Wife and I pay $100 combined.  Feel like there is room for improvement here, though she's pretty hooked on a fancy pants phone.

HSA Contribution?  Medical expenses pre-kiddo were basically zero, but now should I be maxing out, or at least putting some pre-tax money into my HSA?  Think my max is $6k per year.  Anyone max this?  Put some in?

Also, wife and I both attempted the 7 day Challenge twice now and failed miserably, haha.  Harder than it seems.  Will restart again this week.  Only spending allowed is groceries.

Thanks for reading!  Glad I found the blog and forum, it's already helped me get my finances together!

[BPA]

Welcome!  I grinned at the image of you smashing incandescent light bulbs. 

I don't know how close you are to FIRE, but moving so that you either walk to work or cycle safely and get rid of a car would be my suggestion.  However, I understand that Texas heat can be brutal.  I save a lot of money by living close enough to work.  I am wussy about cycling in the winter (Canadian, eh?), but I can walk then. 

Sounds like you are making some pretty great changes though.  Just don't step on the broken light bulbs.

[Lkxe]

Did you run the numbers for the mortgage with closing costs? Could you just prepay the 30 year? Could you invest the prepayment and then when the accounts balance pay off the mortgage? Which way is more cost effective?  Truth be told I have a hard time with payments (even automated) so I send the extra off to Vanguard but even out the mortgage to nice round numbers every month. Love those zeros. I dislike fees more than I dislike interest.

Woot my bristles post!

[Lowerbills]

BPA - I'm all for getting rid of one of the cars... Could happen soon.  Rather than move, there's a good chance that about half of my work will be a short bike ride beginning in a couple months.  Should help.

Lkxe -

The difference (monthly) between the 15 yr @ 3.0% and 30 yr @ 4.25 is $397 per month.  (15 yr is $397 more)

If I paid no additional principal on the 15 yr, mortgage free in October 2029 and cumulative interest paid is $60,762. 

If I keep the 30 yr @ 4.25, and pay the difference (an additional $397 per month to principal), mortgage free in September 2031 and cumulative interest paid $100,884.

I've worked with this mortgage broker previously, and I know from shopping GFEs previously the expenses should be pretty low.  Can probably get it done for $2k.

I also asked last week, the day Treasuries shot up (Monday morning?), look at a chart of TLT or BND... That's when I was quoted 2.875%. 

Thoughts on refi into the 15 yr?  Pretty big difference that 1.25% makes over 15 years...

Investing the prepayment instead is probably better, but carries some risk.  It's all in assuming future returns.  I know have a post-tax return of 4.25% on additional principal paid.  I have some cash, and funds in taxable accounts that are invested in bond funds, and they aren't yielding > 4.25% post tax...

[Lkxe]

Lkxe -

The difference (monthly) between the 15 yr @ 3.0% and 30 yr @ 4.25 is $397 per month.  (15 yr is $397 more)

If I paid no additional principal on the 15 yr, mortgage free in October 2029 and cumulative interest paid is $60,762. 

If I keep the 30 yr @ 4.25, and pay the difference (an additional $397 per month to principal), mortgage free in September 2031 and cumulative interest paid $100,884.

I've worked with this mortgage broker previously, and I know from shopping GFEs previously the expenses should be pretty low.  Can probably get it done for $2k.

I also asked last week, the day Treasuries shot up (Monday morning?), look at a chart of TLT or BND... That's when I was quoted 2.875%. 

Thoughts on refi into the 15 yr?  Pretty big difference that 1.25% makes over 15 years...

Investing the prepayment instead is probably better, but carries some risk.  It's all in assuming future returns.  I know have a post-tax return of 4.25% on additional principal paid.  I have some cash, and funds in taxable accounts that are invested in bond funds, and they aren't yielding > 4.25% post tax...

See you didn't need answers after all. So a 200000ish mortgage, with 2000 in fees is about what I got playing with the calculator. Every time I consider refinancing I dump the fees on the principal ( a little game I play with myself) I run a little conservative in regards to cash flow- I would work out the needed payment for the same length or same interest total and do that, because something terrible might befall me. That said I don't carry any bonds and very little cash (enough to cover my non monthly payments and the deductibles ) so not chicken shit about all risks just hit the fan risk.  Given your numbers ( and ignoring my own propensities) I can't complain nor have I any right too.

[Lowerbills]

Gotcha.  Didn't want the whole thread to be about refi into 15yr vs keep the 30.  Did a search and found some older threads about that topic.

One thing I like about this blog/forum, is the range of topics covered to reach financial independence. Some cost $0 and are effort based (ride a bike to work), get a rewards card, etc... Some are lifestyle changes, don't watch cable, don't drive a clown car etc...  Others are one time investments that have a high ROI - ex. Insulation, lightbulbs, solar., and the recent post about aquaponics... (I grow a crapload of lettuces from seed in a regular garden and have often drooled at the ROI on a package of seeds...)

Just looking for what's next, could be any of the three after the initial changes I've made... Effort based, high ROI stuff (seems most applicable to energy consumption), or lifestyle changes.

Big ones I'm considering are 1.) improving current mortgage, 2.) achieving greater energy efficiency (more ideas welcomed) 3.) decreasing insurance costs.... Open to any additional ideas big or small, but particularly like the one timers with high ROI. 

[Wile E. Coyote]

BPA - I'm all for getting rid of one of the cars... Could happen soon.  Rather than move, there's a good chance that about half of my work will be a short bike ride beginning in a couple months.  Should help.

Lkxe -

The difference (monthly) between the 15 yr @ 3.0% and 30 yr @ 4.25 is $397 per month.  (15 yr is $397 more)

If I paid no additional principal on the 15 yr, mortgage free in October 2029 and cumulative interest paid is $60,762. 

If I keep the 30 yr @ 4.25, and pay the difference (an additional $397 per month to principal), mortgage free in September 2031 and cumulative interest paid $100,884.

I've worked with this mortgage broker previously, and I know from shopping GFEs previously the expenses should be pretty low.  Can probably get it done for $2k.

I also asked last week, the day Treasuries shot up (Monday morning?), look at a chart of TLT or BND... That's when I was quoted 2.875%. 

Thoughts on refi into the 15 yr?  Pretty big difference that 1.25% makes over 15 years...

Investing the prepayment instead is probably better, but carries some risk.  It's all in assuming future returns.  I know have a post-tax return of 4.25% on additional principal paid.  I have some cash, and funds in taxable accounts that are invested in bond funds, and they aren't yielding > 4.25% post tax...

I would refinance, but I wouldn't pay down any principal (that money could likely be invested in something that would return better than 3% a year).  If the principal paydown is required to get the lower rate, then you should probably consider run your analysis looking at the rate that you could get without the principal paydown.

[Lkxe]

Cheap and easy- Per our energy audit, climb in the the attic and caulk all penetrations( can lights,wiring), including the base of framing for the attic hatch. Overlay the attic hatch with batts ( I bought a tent http://www.amazon.com/Attic-Tent-AT-2-Insulator-Opening/dp/B000I6MX2Y/ref=sr_1_1?ie=UTF8&qid=1414068504&sr=8-1&keywords=attic+hatch+tent)

Strange but true- caulk the gap between ducts and flooring or drywall and between electrical boxes and drywall. Use those foam outlet covers (http://www.amazon.com/Frost-King-RS6H-Rectangular-Sealers/dp/B002T45UEQ/ref=sr_1_3?ie=UTF8&qid=1414068686&sr=8-3&keywords=outlet+insulation) and use the baby safety plugs in all unused outlets. http://www.amazon.com/Mommys-Helper-Outlet-Plugs-Pack/dp/B00081J3N6/ref=sr_1_1?ie=UTF8&qid=1414068738&sr=8-1&keywords=outlet+baby

 Don't over insulate the attic- too much is just money spent find the appropriate level for your area. Wrap accessible piping and blanket the hot water heater 

HSA- pretax money sounds great and if you can avoid actually using it it can cover the expected medical payments of 225000 in your old age.

That's it all I got

[Cheddar Stacker]

A few things really jump out at me:

1) You are holding Bonds in your taxable investments. Don't do that. They serve you better in tax sheltered vehicles because the income from them is taxed at ordinary rates. Read this: http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement

2) I didn't hear any mention of a 401k. You are also using Roth IRA's rather than Traditional IRA's. Investing in a 401k will reduce your tax burden, but it will also take away capital you might have otherwise used for your next SFR, so there's a tradeoff. Read this: http://www.madfientist.com/retire-even-earlier/

3) I'm a serial refinancer, and I don't mind debt at all. I'm personally in a 15 yr 2.875% mortgage. In hindsight, I would be better served in the 3.625% 30 year mortgage that was available at the time I refinanced. The increased payment with the 15 year mortgage is the issue at hand. Reducing the interest rate that much is a huge win, but having that extra $400/month available for 401k/T.IRA/R.IRA/SFR/taxable investments is the counter argument you need to consider. Do you really want a new SFR every year, because that might be hard to do if you're about to decrease your monthly cash flow by $400. Maybe not, but I think this is your biggest decision based on everything you laid out.

Welcome to the forum.

[Lowerbills]

Thanks for the reply Cheddar!  I read the madfientist link, good stuff.

Ok, so what if my job doesn't offer a 401k?  We're setup as an LLC and receive a K-1, so we're not employees, and 401k is not available.  But I'm also not "self-employed"...

I'll max the HSA contribution, pre-tax and tax-free on any gains is bueno, even though there are some bullshit fees associated with the funds available through our provider.

Right now my priority is: ROTH (max contribution myself and wife) and HSA Max contribution.  Considering adding 529(b) to this top tier due to tax efficiency.

Then my plan is 50/50 acquiring additional rental properties and investing in taxable accounts via Vanguard ETFs (I'll be sure to put my stock ETFs in my taxable account and bond allocation in ROTH for now.)  ex.  let's say I had $50k left to invest after maxing ROTH and HSA, $25k to Vanguard and $25k towards the purchase of another rental.  At least that's the plan... Thoughts?

Guess I need to look further into contributing to a traditional IRA vs Roth and converting at a later date...

So where does the extra $400 a month in mortgage payment from refinancing to 15yr fit into this scenario? 

The above scenario isn't that uncommon.. Say you have a two income family, and make $120k per year.  If you could live on $50k, which I assume many people on this forum can, that leaves $70k to invest.

$11k to Roth
$5k to HSA
$25k Vanguard funds
$25k Real Estate
$5k  Additional principal for 15 yr.

Do you see anything wrong with this plan?

Thanks

[Cheddar Stacker]

There's nothing wrong with your plan, it just might not be the most optimal (or it might, who knows).

So LLC with K-1, but it's not SE Income? That sounds like carried interest from a hedge fund. Am I close? If so, they say don't hate the player, hate the game, so I won't rag on you, but I'm not fond of your lobby. If it's something else, please explain how it's not SE income. Do you earn any wages, or are you paid with owner draws??

If you have wages, or the profits from the LLC are taxed as SE income (which they should be in many cases if you're actively involved in the operations of the business) then you can setup a solo 401K, SEP IRA, or other avenues to get your tax deferral on.

So, if you make $120k/year you are likely in the 25% bracket or higher. I'm right there with you, and there are some shitty tax rules for that range of taxable income. You will lose the child tax credit, lose out on student loan interest, and a couple other things. This is why it becomes very important to use Traditional IRA's/401k's. Since you don't have 401k's at work, you can fully deduct any T.IRA contributions. I would suggest you switch them for 2014 (re-characterize if you've already made them) and do traditional from now on.

It sounds like you will have plenty of capital for RE investing, so go ahead and refi to 15 year if you think it's best. But read this first: http://forum.mrmoneymustache.com/investor-alley/paying-off-mortgage-early-how-bad-is-it-for-your-fi-date/. Technically you wouldn't be paying off early, but going to a 15 year mortgage has the same effect.

You're doing fine, these are just ideas for optimizing.

[Lowerbills]

Cheddar - it's not considered carried interest, but yep, you got it.  We are structured as a hedge fund, though that's a fairly broad paint brush. 

I'm honestly not sure why we don't have to pay SE taxes, or social security for that matter, but the accountants say we don't.  Don't pay in to SS, but don't have any waiting for me later in life... One downside.

No wages paid.  Everything hits the K-1 as distributions and capital gains -mostly short term :(

Lxke - have some of those foam Frost King outlet sealers on the way from Amazon.  Used those at an older house I lived in once, where you could feel the cold draft by the outlets...

The thread on paying off early and how it affects FI date should be a sticky.  It's good to see the math.  I know I am inclined to lean more towards the psychology of having a home PAID for, and the sense of security that comes with it.... But as several have posted, I see how it's sub-optimal.  Going to a 15yr instead of a 30yr, is kinda like a half step to paying off early.  Yes you are investing more into your house, rather than equities/bonds/REITs/RE via the higher monthly payment.  But the tradeoff is a significantly lower interest rate.  There's probably a point where it makes sense... In my case, I'm looking at a 1.25%-1.375% lower interest rate if I go the 15yr.  Probably sit tight for now and keep my mortgage broker ready to pounce if they dip another 1/8 or so...

[Cheddar Stacker]

Cheddar - it's not considered carried interest, but yep, you got it.  We are structured as a hedge fund, though that's a fairly broad paint brush. 

I'm honestly not sure why we don't have to pay SE taxes, or social security for that matter, but the accountants say we don't.  Don't pay in to SS, but don't have any waiting for me later in life... One downside.

No wages paid.  Everything hits the K-1 as distributions and capital gains -mostly short term :(

I would take that deal in a second. I doubt I will ever get out of SS what I pay into it after factoring in the time value of money. It's just a strange industry that's convinced (that should be read as "paid") congress to look the other way and not call it earned income. You don't pay SE tax or FICA tax if it's not earned income. The justification for it not being earned income is beyond my comprehension as you certainly work a lot of hours, and your efforts produce profits for your company and income for you. Consider yourself lucky while it lasts. Yours is a targeted industry among anyone in the government looking for more tax revenues.

Plenty of other conversations on the mortgage question on this forum. My general view is if you plan to stay in the house less than 15 years, you will come out ahead with a 15 year mortgage vs. a 30 year.

[Dyk]

Great  progress!  Keep it up!

Car - I heartily recommend getting down to one if you can, and that one only warranting the basic (lowest required) insurance.  The savings in doing this are incredible.  Go for it!
Lights - Try (or similar) - http://www.amazon.com/GE-Lighting-45145-40-Watt-Tubular/dp/B00006IBET/ref=pd_sxp_grid_pt_0_0
DIY insulation in attic:  Yes, I just did mine for $400 after rebates.  I am hopeful payback is 1.5 years, I will post over time as I find the results.
Cell phones:  http://www.mrmoneymustache.com/2013/05/30/republic-wireless-19-for-an-unlimited-everything-smartphone-plan/ - My wife just want's a flip phone, so we bought a rugged one for $40 and she is now on the Aiirvoice wireless $10/month plan.  (My phone is covered at work).
Energy/Utilities - Low flow (1.5gpm) shower heads, and 1.0gpm aerators in faucets
Energy/Utilities - This one was a strange one for me, but I was wrong to be afraid.  Wear your clothes more than once.  (You can figure out the # of times, and the fact that socks/underwear probably aren't the best choice for this.)  MMM is not the only one to recommend this!  http://www.businessinsider.com/levis-ceo-dont-wash-your-jeans-2014-7 

[Bob W]

Welcome!  I am so super impressed!

Energy -  Have a whole house energy audit by a certified Hers rater.  Many utilities subsidize these.  They will identify leaks with a blow door test.  They will also present you with a nice spread sheet showing pay backs on various items.   They usually cost around $250.  So if you have to pay for it all and end up saving 2 bucks a month it is well worth it.

Also, set your water heater to low and wrap it in old blankets.   

I wouldn't do the refi.  In my opinion if you are borrowing money at 4.5% over 30 years and the market is paying 9% you will literally be millions ahead.   I would consider an interest only 30 year fixed though.

Grocerys -   Shoot for 2 dollars per day per person --- fail and end up at 3 dollars per day.

Solar -   Nope, rarely pencils out and what they don't tell you is the cells diminish and need replacing.   You're better focusing on minimizing use.   If you're handy  you can set up a solar water heater that will pretty much eliminate your hot water bill.  Use some junk parts and free glass.  Google it.

Also,  try a killawatts tester (borrow one?) to check all your electrical users.

Also,  towels only require washing every 10 or more uses.

Also,  for showers -- rinse, shut off water,  lather,  rinse.  Should use about 3 gallons of water for a very clean shower.

Monitor everything starting with the bigger expenses first.   

Use a log for the cars with categories like work commute,  leisure,  mandatory, etc.   
Most all trips could be done on the way to or from work.

Consider commuting with a car pool?  Consider moving closer to one persons work?

Lastly,  check the post on side gigs -- you and your spouse could easily be earning $500 extra per month.    The power of additional money when your expenses are decreasing is incredible!   

Would love to see more case study information with detailed income and expenses.  We could really pick that apart for you.   You mentioned no debts other than mortgage?  That would make you nicely strange?

[Lowerbills]

Thanks for the responses Dyk and Bob... haha...

Energy - This one is kinda fun for me, it's like a game to see how efficient I can get the house.  Metal roof, one-story, so I think I've got a good start.  Attic could use some insulation, I've been told 18'' would get me to R-50... Well, right now there is about 5''.  Going to get this done in the next month or so.  If I go through a provider, there are substantial rebates, and I would spend about $250 more, than if I did it myself.  Need to check, as I'm not sure the rebates are available if I do it myself.  But it's basically just blowing insulation and weather stripping a couple doors, sealing ducts...  Last month was pretty fun getting the utility bill in the mail, and I'm pretty sure my next one will be even better!  Granted, getting a little help from cooler weather and almost not having to run the A/C at all (turned it on yesterday for the first time in about 10 days)!

Refi - Interesting suggestion about the interest only.  I will look into it, even though my gut reaction is it's counter-intuitive to my "wanting" to pay the house off quicker and be mortgage free.  If I could get say 3%, that would save me about $500/ month.  I'd pay less interest, but no principal reduction, so I need to look at the numbers.  Of course, if the savings is invested and earning > 3%, you come out "ahead"...

Groceries - Yeah, I fail here, and I cook just about every meal at home, including lots of multiple servings, one pot meals.  I'm a little heavy on the meat and seafood.  I just started using Mint to track, but I'll finish October just shy of $800... I know, a ton, and there are only 3 of us.  This does include household items, dog food... I'm planning a trip to Costco where I can hopefully load up on some essentials in bulk and save a little.

Solar - This seems to be the general sentiment... Sounds great in theory, but will hold off for now.  Looking for lower hanging fruit right now, not something where my break even is in 7-10 years...

Water - good call Dyk, my kitchen faucet could definitely use an aerator, as well as both bathrooms.

Car - This is a biggie, and using Mint really helps visually drive home the expense of running two cars.  I really want to get down to one car, wife is resistant to the idea, but still could happen.  My round trip is ~ 22 miles.  Wife's work is ~ 10 miles round trip.  I've made a real effort to combine any other trips I can't do on my bike on my way home from work, and I know it's helping... Probably won't reflect until next month, but I bet we've already reduced our gas expense by 10%-20%..  It's a start.  Also dropped insurance to just liability on the older car yesterday.  Felt good...  Will save $23/month going forward.  More shopping around to be done... I loathe the insurance industry.  Pay for some shit in case it happens, but 9x out of 10, they don't pay for the shit when it does happen, or jack your rate after.. Go figure.

Cell Phone - just started researching Republic Wireless... We're on a plan with another family member, which helps a little, but we're paying $95 for the two of us for fancy pants service.  We could probably get this to $60/month based on what I've read and still be able to use phone for work a little (which we both do).

Yeah, no debt other than mortgage on current house (residence) 30 yr @ 4.25%, and mortgage on one rental property (my first house).  That one is at 2.49% with an ARM that is set to adjust in 2017.  Goal is to slowly acquire more rental properties, but may end up selling this one.  Want to take advantage of having lived there 2 of the last 5 years (no capital gains tax), and sell before ARM adjusts and cash flow drops.  Alternative would be to make some repairs, refinance it, and hold it long-term, but the numbers on it aren't great. 

I thought about posting this in the Real Estate section, but here goes...  I'm guessing with two more months to go in 2014, income will be about 2.5%-3%.  Principal paydown will be about the same, and appreciation will be about 5%? I have some good equity and appreciation in the property, but since it was previously my residence, what number do I use for Cash on Cash return, or my ROI?  Based on the equity via appreciation and the years I lived in it (principal paydown from paying my mortgage), the return from renting it is pretty paltry.  But based on my actual cash put into it (down payment and rehab costs), it's not so bad...  Thoughts?

Bob - as far as "side gigs", I completely agree.  I'm almost done with completing the courses to get a real estate license.  Something I'd like to get into, whether it's just for buying or selling investment properties of my own, or just a full on side job... I think the return on a license has to be ridiculously high.  Mine is probably going to cost $600 and three months of my time, studying when kiddo is napping or after goes to bed.  If you buy or sell one $200k property, that's $6,000 at 3% split (before any broker splits or fees)... Anyway, I think it will help, and am looking forward to it.

Thanks for all the thoughtful responses!

[Bob W]

Seriously consider the HERS home energy evaluation.   (I think R50 may be overkill in the south?)

Since the energy is a game this will give you tons of facts and you won't be shooting from the hip.    Believe it or not most heat and ac loss is threw leaks in the home.  The door blow test will quickly identify these leaks.   Leaks occur around windows,  sockets,  holes for plumbing/wiring/vents,  door frames etc.   20 little leaks can basically add up to a 1 square foot hole in your house.

Regarding the real estate license -  that is one of two licenses I think every MMM reader should have.  (the other an auto dealer).   Even if you only ever use it to sell and buy your own home.    Be warned that once you get into it you'll have the urge to move into a home closer to your primary job!  lol

(I wouldn't be to overly optimistic about a 3% return on listings as you will have considerable overhead and all your listings will not sell.  1% may be more realistic for a newbie)

[Hummer]

More insulation is never a bad thing. Insulation also keeps your home cool in the summer. It's not just for keeping warm in winter. I live in Canada but I noticed that with the extra insulation in our attic, our house was 3 deg F lower in the summer than usual. It was great. That's with no A/C, it is Canada... :)

[skunkfunk]

Tell us more about these cars. Makes, model, year, miles, MPG, etc. BTW 11 miles and 5 miles each way is a fairly easy bike commute. My brother and I both commute and his is closer to 11 miles than mine and in (Oklahoma which is similar to Texas I guess?) with the only real problems being weather. Getting to the hop of a big hill and then having the wind in my face so I have to pedal all the way down to the stop sign at the bottom ... whatever.

Give us the stuff on those cars.

[Lowerbills]

Hyundai Sonata 2007 with ~ 130k miles.  Been on a quite a few roadtrips.  Gets approx 24-27 mpg based on our driving.

Toyota Highlander 2012 with ~ 20k miles.  Approx 23-26 mpg based on our driving.  This was the "we're about to have a kid, let's get a comfy safe car purchase".  Replaced a 1999 Jeep Cherokee.  Plan on owning this car a LONG time.

My commute isn't great for biking mostly because of the roads I have to travel on, not because of the distance.  Went on a pretty fun ~ 20 mile trail ride yesterday at lunch, and it was a little chilly.. Love riding my bike, just doesn't make sense for my particular commute.

Checked into public transportation options, and it would take me 1 hour and 5 minutes each way, and that doesn't include biking to the rail stop on each end.  Wife's commute is much more doable.  We weren't able to complete the "car free weekend challenge" last weekend, but she's up for it this weekend, and has to work a few hours on Saturday.  It's only about 3 miles from the house, but she's planning on biking it!

I think we can move towards being a one car family, just not quite there yet.  In the meantime, I've been tracking miles and making every effort to limit our driving as much as possible. 

[EDSMedS]

It will be important for you to define a purpose for yourself.  Mustachianism allows us to step out of the paradigm that insists success=more.  Mustachian success = badassity + clarity.  It can be a burden to define your own purpose, which is why so many choose to obey work/life standards until 65 then struggle to figure out anything to do with their time and money.  Their purpose-muscle has atrophied. 

Try waking up a few days without any plans or money.  What makes an hour fly by more than any other activity?  If I pick up an instrument, weights, or a notebook, an hour is a blink.

Start researching the cost/benefits of the purchases that support your priorities.  Slow down every purchase until you realize you have options.  Did you know there are free pianos on craigslist?  Frequently.  Sure, they will have problems.  Luckily, I enjoy solving problems.  I am a strong believer in the virtues of tinkering.  Dive a bit deeper into things that are compelling.  Experience the grace of temperance and slow joy!  Cheers.

[Lowerbills]

EDSMedS - Very insightful post...  Making progress towards clarifying that "purpose" is the goal.