Yearly budget review and sanity check

Conducting a yearly budget review is crucial for maintaining financial health and preparing for future expenses, especially as you plan to expand your family. Start by gathering all your income sources, which for many families may include salaries, side gigs, bonuses, and other earnings. In your case, your combined income of $69,000 from teaching and additional yearly earnings of $22,800 from side hustles provide a stable foundation. Next, analyze your expenses. A detailed look at each category (housing, vehicles, savings, etc.) will help you identify areas for potential savings. Your mortgage, car payments, and other obligations are significant; consider refinancing options for lower interest rates or consolidating debts to save money. Additionally, it is essential to maintain a solid emergency fund. With over $20,000 in the bank, you have a good start, but ensure that this buffer can cover unexpected costs, particularly with a child on the way. Thinking ahead, strategically allocate any extra income from side gigs or freelance work toward your retirement plan or paying off high-interest debt once your land is cleared. A dual pension plan may provide essential security, yet increasing contributions to a retirement account can be beneficial if your financial situation evolves. Lastly, remember to incorporate flexibility in your budget for family vacation planning, an important aspect of quality living. Saving adequately for leisure while balancing work and future family expenses will enable you to achieve financial health as you progress. Assess these strategies regularly to adapt to changing financial dynamics over time.