I don't understand how you can possibly spend that much on food. I'm not being critical but rather trying to understand how you spend that much.
Do you eat out a lot?
Is this for just your husband and you are more people?
Where do you buy your groceries?
It's okay, I don't mind. Honestly if I didn't track the expenses in Mint, I wouldn't think we spent NEARLY that much. It's just two of us and two cats. The figure includes pet food, personal care supplies, toilet paper, etc. But yeah, we eat out too much and order takeout and buy groceries and sometimes waste them. I went through a phase of eating out 3-4 lunches a week, at $10 a pop. My husband often buys breakfasts and lunches. And if we go out with friends, our share can be $80-100. I want to see this month how low we can go. Food is one of the hardest things for me, because it's easier for me to just give up something cold turkey than to try to do it in moderation.
I have tracked our finances in Mint for a few years. It's not perfect (one month it recorded all our expenses as income and they never fixed it--you get what you pay for, eh?) but I have a lot of data available to me. The hard part is changing behavior.
These are my current priorities and goals:
1) I would like $2000 in reserve, then I'd like to aggressively pay down the credit card debt.
2) After that, I'd like to save up for the sewer line. It's really hard to say how urgent it is. I have a hard time evaluating contractors, who would all like the job tomorrow. But I've had it scoped and it looked pretty bad.
3) We're stuck with the PMI for four years, I believe, so we have 4 years to accumulate a lump sum to pay down the mortgage. Rather than pre-pay the mortgage as we go, I'd like to keep this liquid so it can double as an emergency fund while we're saving it up.
4) But I think simultaneously I'd like to work on establishing a true emergency fund, on the order of $20,000.
Oh, and meanwhile we'd like to have kids. :/