Surprise baby--late to the game. HELP!!!

[Mexitali]

Hi!
Me (36) and my husband (33) have been married for 6 years and have a 2 yr old daughter, a 14 yr old old lab mix, and 3 cats. We have never saved any money and lived in total denial thinking we had tome and would "one day" get ahead. Yeah, Anyway.... Here's our situation:

Income:
me:$18,000 yr
husband:$55800 year, after 401K take home: $3375

Ave take home income:$4600

Ave expenses: $3900

We "own" our home but still owe $126,000.00 (mortgage currently 2% but going up to 3%, 4%, then 4.625%) thinking about refi in the 3%range)

I am a hairstylist in a salon I own with my mom and brother. I only work 2.5days/wk (actually about 60hrs/month) I was a corporate trainer and traveled 3-4days/week overnight but since the birth of my daughter I gave up that job for a *very part time position at our Salon and spending the days with my daughter)

My husband is a Live Sound Engineering --currently working at a Casino 1.25hrs away out in the middle of nowhere (on a Reservation) This is THE ONLY guaranteed permanent weekly job/gig in his industry (also offering medical and 401K benefits) unless we moved far away from our family. No desire for that... Not to mention we can't afford (not do I want) daycare. Our families help out when I work

Goals:
To be real mustachians and get to FI before 55 and have the house paid off by or before that time. To afford vacations/travel, and to save for daughter's education. here's our financials:

____________

$785  Mortgage & escrow(will go up as high as $955 in 2017)

$95  (ave)SMUD (electric only house)
$20 county utilities
$30 water
$20 garbage

$480  Car Payment    
$200  gas   (remember my husband drives 3 hrs roundtrip 4 days/wk)
$280  Insurance (2 cars, home owners & 2 life insurance plans through StateFarm)
$400  groceries
$30    CSA (fresh veggies every month)

$65   Internet
$87   ATT (2 iphones)    
$50   dish (TV)

$100  pets (3 cats + 1 old dog)

$30    health / prescription (husband has severe psoriasis and needs meds)

$30    child expenses 
$50    Household misc purchases    
$120   husband spending   (drives me crazy but he refuses to cut this)
$50   date / family eating out   
_________________________________
$2902 expenses

DEBT:  $3000 on 2 credit cards we have been transferring this back and forth onto 0%APR / 0%bal transfer fees so that we can use the extra to save up an emergency fund and NEVER USE CREDIT AGAIN (except for credit card "cash back" rewards cards that are paid off every month)
______________
Savings:

$1000 total     savings account. (we're adding to this every month)

$50/mo    Daughter 529 College Fund    (will increase to $100 when debt is gone)
$80/mo    5year vacation fund
$50/mo    annual vacation fund
$100/mo  buffer/emergency fund

_____________________________
outside/long-term savings:

$1500       Betterment IRA balance:
$4600       401-K  ($280/mo out of check)   6% currently (the total includes a company match of 4%) **need to increase this to 15%

[jdoolin]

You also shouldn't be paying that much for phones.  Read the articles here on MMM about reducing your cell phone bill by using MVNO companies like StraightTalk, Republic Wireless, Ting, RedPocket and others.  No way you should be paying that much, especially if yours isn't necessary.

I also agree that $500 for groceries is a bit steep for a family of your size.  You can reduce that by not letting anything go to waste, plan your meals ahead of time, shop according to what you already have that needs used.  Buy less meat, avoid things like pre-packaged meals, soda pop, potato chips and junk food, overpriced luxury foods and learn how to love bean dishes.  They are so cheap and so delicious.

Is there any reason you need full coverage on both vehicles?  My wife and I pay $85/mo for insurance for two vehicles of comparable age.

Of course dish is a waste of money and time, so keep fighting the good fight there.  Maybe compromise with Netflix and an antenna for local broadcast.

Ahh....pets.  I don't like telling people to get rid of pets, so I won't.  But 3 cats and a dog is a lot.  So I'll just suggest to not.. .ahem... "replace" them when the time comes.  In the meantime, look at cheaper cat litter solutions and buying food in bulk.

Your energy bills look kinda high.  Not ridiculous, but higher than they probably need to be.  Read MMM's articles on "I'll Show you My Electric Bill if You Show me Yours", "Understand and Destroy your Home Heating Bill" and "How Not to use your Air Conditioner".  Also check out http://www.michaelbluejay.com and learn all about how to reduce energy use.

That 1.25 hour commute is a killer right now.   I'd suggest a more drastic move (NOT LA), but I don't know enough about your situation.  Is there anything else your husband can do for work?

When you have the credit debt taken care of, eliminate that car loan and never get one again, of course.  :-)  After that it's kind of up to you.  If you want a cash cushion, save that.  You can also pay off the house if the interest rate isn't low.  If it *is* low (say 3.5% or so), you can technically do more with the money by saving and investing and getting a higher rate of return.

But basically, once you have crap paid off and expenses reduced enough to free up some real cash, start saving and investing.  But never stop trying to reduce expenses more.  It's a lifelong project.