Young, single guy … seemed reasonable

Not really. Your vehicle isn’t “new”.

Your vehicle has comprehensive on it. That part of your insurance policy pays to repair your vehicle if it is damaged. You need that even if it is in storage. If a tornado goes through while you’re deployed, the vehicle is covered (more or less).

Then there is liability coverage. That is the part of the policy that covers you and damage you cause. Talk to your insurance agent for more details.

The gap insurance is an add-on to your policy that helps you to pay off your loan if the vehicle is totaled. Soon you won’t need to keep that.

Auto insurance covers you as a driver … any car you drive is insured if you cause damage while insured and auto insurance covers damage to your car.

You don’t need to do anything except let your insurance agent know that the vehicle is in storage. If the car is going to be in storage (garaged) in another state, they need to know, too. Vehicle insurance doesn’t usually move states.

Your other driver should own their own vehicle and have their insurance. If they cause damage while driving then their insurance covers the car.

I don’t know which deployment port you’ll be in, but all sorts of things can happen while it is in storage, especially if you’re on the gulf or east coast. Your insurance should drop because you won’t be driving it but it still needs to be covered for damage. Ask a mechanic what you have to do to store it properly if you can’t leave it with someone who can drive it occasionally.

You won’t need a vehicle when you’re on a sub but you won’t be at sea for the entire 2 years. You do get a break. You can store the vehicle. Yes, it was a stupid purchase but, if you can’t afford to sell it now, your option is to store it and pay down the loan. The upside is once you get access to it again, it’ll be really low mileage for its age.

You’re going to basic, not prison. People use their cars when they are in the service. You will get a chance to go home. Put the loan and your insurance on auto-pay. Your expenses will be low so you should be able to afford it.

I’m a huge advocate of being mortgage-free. You’re so close but not close enough. You’re executing a great plan. Keep doing what you’re doing.

Literally federal law. There are non-exempt salaried employees who qualify for overtime.

I’m wondering … have you calculated how much it costs you to work? How much does your employment contribute to the taxes you pay? If you didn’t work, would you still be in need of childcare? (I ask because, with your spouse working from home, you might have to have a quieter environment than 3 young kids will provide, especially in a small house). BTW, childcare doesn’t completely disappear once kids are in school. There are lots of days when kids aren’t in school and those breaks and summer can be very expensive.

I ask these questions because, if I were in your situation, I’d lean toward working less, not more. I wouldn’t take the OT given the bonus package. I’d lean toward straight salary plus profit sharing. That way, if you work less than 40-hours but get your job done, it doesn’t matter to your cash flow. You can take your reduced stress level and put that toward household money management and quality of life issues.

As for the house, keep in mind I’ve raised 5 kids to adulthood, your 3 bd, 1.5 ba, 1700 sq ft is fine until the kids are around age 12. Before then, I’d predict you might move to a more suitable house rather than remodel.

So, priorities:

• Emergency fund. Aim for 6 months of regular monthly expenses (including daycare).

• Debt pay-off except the mortgage. Reduce unnecessary expenses.

• Save for another used vehicle.

• Fund retirement.

• Aim to have one stay-at-home parent by the time the oldest child is 12. At that point, childcare ends and the middle school / teenagers truly need their parents around. If you can only choose one time in childhood when you don’t work, the time between 12 and 18 is the most critical.