<human>: After two years as a stay-at-home mom, my wife is heading back to work.  After taking into account the additional expenses of her new job (daycare, gas, clothes, etc) I estimate that she'll be bringing home around $2,000 per month after taxes.  For the past two years, we have lived comfortably (though not extravagantly) off of my $4,000 take home per month.

This is my current plan...let me know if I'm missing something.

Step one:  Build our emergency savings back up to 10k.  We currently only have about 4k in savings (plus around 2k in checking).

Step two: Pay off $4000 tax error debt that we're currently making payments on.  I don't know the exact interest on this, but it's definitely the highest out of all of our debt, including our house.

Step three:  Pay off $1000 credit card debt from a new washer/dryer set we recently purchased.  This is "same as cash" for the first year, and we'll have it paid off before that ends.  After this, our only debt will be our house, which is 3.85% fixed.

Step four:  Put $500 per month towards luxuries (vacations, new furniture, etc.)  Put the remaining $1500 towards either building up our savings further, retirement, or paying off our house faster.  I'm not sure which is the smarter play at this stage.

Thanks for any feedback you can provide!

Could you distill the essence of the text into 1-3 sentences?
<bot>: Lived off of my salary for two years. Now my wife is going back to work. What do we do with new income?