Thank you for your comments, support, and advice.  I wish I could do most of the things suggested. 

@gdynpm
1. I’m thinking about it
2. I’ve given up on that effort
3. Getting a second job is a thought, but I already work 55 hours a week and don’t see my kids enough
4. As you can see, we’ve broken the budget every month, albeit my wife’s doing…or Murphy’s law.
5. I work an hour away, and need something reliable
I envy your current position, but until the real estate market bounces back…we’ll be in a pinch.  If real estate values kept a steady pace upward over the last 5 years, I’ll bet we would have $100,000 more in equity and I would have sold the investment property a while back saving us tens of thousands. 

@anon
Sound advice…getting my wife on board.  I show her this budget every month and she dismisses it as overreacting.  I’m at a loss on how to get her on board.  She feels I lecture her too much.

We could probably sell the cars and downgrade, but that will be a hard sell to the wife as well.

The interest on our credit cards has been floating around in 0% deals for a while and I intend to get this paid off this month.  After that, would you still suggest ceasing contributions to 401k and 529’s.  We’re only doing $50 per month per kid.

“no unnecessary expenses” now that is what I keep trying to get my wife to agree on, but in her eyes they are necessary.

$400 a month on groceries???  Does that include all the other household items…ie cleaning supplies, toiletries, etc. If we could get it under a $1,000, I’d be amazed.  At least I talked my wife into clipping coupons…haha, that seems like nothing in the grand scheme of things.