Sounds like you have a great start . There will always be a balance between luxuries now and retiring earlier or more comfortably . Question 1 mortgage interest is so low right now , you are better off putting your money in the market . I would start by maxing 401 ksIRAs . Read The Intelligent Investor by Warren Buffett and use a basic index fund strategy . Question 2 Use retirement calculators PersonalCapital is great . Adjust your spending rate , savings rate , etc . See what a change in your budget will cost you . Maybe you have to work another year in your 50 s to pay for additional luxuries today . Maybe you were planning on working until 65 anyway and will have to give up 500 mo at retirement for 200 mo today . Learn the longterm effects of your budget changes today , and make an informed decision about whether or not it ' s worth it . Fortunately , you ' re in a great financial position , so whatever way you go will probably end up alright