Well first off we have a lot of free tax deductions including the 401(k) and flexible spending account for childcare. We spend about $1400 a month on the mortgage, about $500 a month on utilities including phones and Internet, $800 a month on daycare / after school care (2 young kids), $400 a month on car insurance and about $1200 a month on food. We are blessed to live in north Florida - with a very low cost of living.

So there’s even more wiggle room. I guess we could save a lot more, but when you have two young kids it’s really easy to blow a lot of money. I think the smartest things that we have done are to pay off all the debts other than the house, and avoid taking on any additional debt. Having no debt payments really gives you freedom to do just about anything you want.