How are we doing?

[wikiwiki]

Looking for some advice on where we are and what we can improve on...

DH 41y, $110k/year
$5k/month net take home (after HSA, tax, 401k)
$114k in 401k, contribute 12%, plus $30k in overseas retirement
$13k in Roth (contribute $450/mo)

I get ~$1k/month for my part time income
$8k in a Roth, $450/month when I can

$5k in EF

We just opened 529s for our 3 kids (11,9,6) and are contributing $300 total per month to those.

$1300/mo for mortgage
$700 utilities-bills per month
$1k food/month
~$500 on misc items

No car payment at the moment, but we need to replace a car soon so that will be $300/mo

We seem to run out of money every month so we do need to reduce spending. Should we be putting more towards retirement, or 529, or the EE?

[DaveInPgh]

The first thing you should do is build up that EF. It is way too low.

[bjl584]

without over-thinking too much, I may be inclined to boost savings and retirement and cut back on the college savings.

The old saying goes, "there are loans for college, but there are no loans for retirement."

In your early 40's you two should have more saved/invested by now. This is why I suggested what I did.

[LivingAlmostLarge]

Save for retirement and borrow for college. Or figure something else out for college. You need to save more for retirement.

[sv2007]

We seem to run out of money every month so we do need to reduce spending. Should we be putting more towards retirement, or 529, or the EE?

If you are running out of money each month, then there's no way to save... why worry about where to put that non-existent money?

[GoodSteward]

It sounds like there may be a budgeting issue. If you are running out but you can make room for something else then you need to budget, or re-evaluate it if you are trying to. Do you plan for monthly expenses? It's one thing to write it all down, but it's another to live it out for the month.

What I am worried about here is you saying you are low on monthly funds, but you are preparing to make a 300$ a month payment. I find it amazing how so many people tell me they can't save anything for a car, but amazingly find money for a payment when they want a new car. I am not saying this is you, but I do recommend saving as much as you can and avoid a long-term payment if you are struggling with your cash flow. It sounds to me like you are going to find yourself in a lot of debt soon if you are not careful.

Funding your kids college is a great thing to do, but you have to be careful you are not spreading yourself too thin trying to do everything you are told is good to do all at once. The first thing to prepare for is that car replacement, then retirement, then kids funds. If you think it is bad now, wait until you pull another 300$ a month from the cash flow.

[disneysteve]

$700 utilities-bills per month

~$500 on misc items

No car payment at the moment, but we need to replace a car soon so that will be $300/mo

You need to itemize these two categories "bills" and "misc". That's $1,200/month or 20% of your income. If there are cuts to be made, this is probably where you will find them.

If you anticipate needing a car in the near future, you should already be saving for it - not just planning to have a new $300/month car payment. Think of it this way. If you are going to pay a $300/month payment, start putting that money aside now. That will reduce the amount you will need to borrow and lower the payment you'll have to make.

I totally agree that retirement savings needs to come before college savings.