What To Do With The Extra?

We plan on putting my old condo on the market soon. A couple of friends are staying there right now and we’re $50/month cashflow positive on it, but I’m really not interested in being a landlord. Once it is sold, we should walk away with about $50k.
NOW, what to do with the money? Or to be more exact, how to divide up the money?

The four categories it can fall into are college fund, retirement, savings, and spend.

I backed the numbers out today, assuming we would need about $200k for college (for the first child). By putting away $36k into some solid mutual funds and leaving it we can accomplish that.
This leaves us ~$14k. With that, we can fully fund both of our 2007 Roth IRAs ($5k each) and have about $4k leftover.

What to do with this remaining $4k is the big question. While it would be nice to have $20k sitting in an emergency fund, we have around $13k and are both pretty comfortable with it.  Also, there is about $8k coming in from some side projects I’ve been working on, and hopefully about $1k extra recurring income as my business builds.

If everything goes according to plan, we should be able to use the $4k to pay our house down Sound like a plan?

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