Taxes seem high at 33% for base line withholding on a one earner family of three. Self-employed doubles the FICA withholding, but you should be writing off lots more.
Rent doesn’t seem bad, however, as a couple with one child, can you rent a 2/2 cheaper in an area with the schools you need? Do you need to spend $2000 on rent? If you rent differently is it possible to save on rent and gas?
Groceries, that’s roughly $200/week for three people. Does this include eating lunches out? That’s seems a little high for three people, one a little growing child.
Loans. $600/month on $15,000. Can that be refinanced? Or are you tracking to pay it off in just over two years?
Tithe. $500/month. That’s a personal choice that only you know is right or not.
Here’s the thing, I didn’t see your retirement plan. Nor extra savings for the future house down payment and closing costs. I also noted that the wife has student loans but is taking care of the child. Is this a permenant plan or a temporary plan? Or semi-perm until the children are into elementary school? If it’s temporary, is it possible to scale back the tithe until you return to normal income?
If you are paying $2000/month in rent, you can buy a place around $300,000. Rent until something in the $300,000 range is comparable to what you are renting.
Also, with a family of three income of $90,000, you may qualify for First Time Home Buyer Mortgage Tax Credits. See San Diego Housing Commission . In SoCal, many programs go to the 80/90/100K point of income based on City/County.
