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You make 80k, so I'd aim for about 20k as an ER fund (Three months of pay checks). I'd also try to fund the Roth IRA along the way, for both yourself and your spouse. IIRC, the rules changed where a non-working spouse can make a full contribution. Once the ER fund is established, this could help pay for the car. I go for new but I keep them until they just can't be fixed anymore. In my life I've been involved with 4 cars that have gone 100k+. The last thing I'd worry about is the house. Yes, it's nice. But until you get on a little more sound financial footing you could wind up in trouble. Biting off more than you could chew if something were to happen. Sign for the mortgage and next month lose your job.

Well 3 months for us is more like 12k. I think you were using gross income not net, in your calculation to get 20k. We were planning on having just an 8k E-fund, since I figured unemployment could make up the other 4k, to give me a 3 months living expenses total.

The thing about the house is we can buy a pretty nice one here in Indiana for a paltry 120k. Practically everyone here owns a house because they are so cheap. I want to save at least 10% for a down payment but am tempted to just put down 5%. Most people I know put down 3% or less... A house would be "barely" more expensive than renting, so its hard not to buy one. I do worry about job stability though.

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