Looks very good.

I would pay off this car before buying another.  If you finance - keep it 3 years or under.

Will you still have a 6 month emergency fund AFTER closing on the purchase of a new home?  IF not - then save for that.

Sisugal:

Looks very good.

I would pay off this car before buying another.  If you finance - keep it 3 years or under.

Will you still have a 6 month emergency fund AFTER closing on the purchase of a new home?  IF not - then save for that.

No the efund and house are a separate accounts. We going to have some extra cash because we have no plans for 2013, except for a weekend trip to New Orleans in June. (Family reunion, I forgot about that in OP)  Last year was very expensive with all the parties and travel.

Is there any other ways to fund for retirement other than our roths? We got kind of a late start on our retirement. Only two years in and I'm 31. Would you put more towards paying down student loans faster? I've never deferred or asked for lower payments. DH is lucky and has no SL.

Also, I've had the other car since 2001. We keep putting money into fixing it, and it's really not worth all that much. Should we still wait? The other car will be paid off in two years. 

Again, is there anything I'm forgetting to account for? It gets a little tricky with a budget when your monthly income is different every month. Thanks again!

I would add a line item for personal care (hair cuts etc), clothing,gifts (birthdays, anniversary, Christmas etc)  entertainment, charitable giving/donations, vacations

 Take advantage of any work related opportunities for retirement

Track your spending to the dollar and you will see if there are categories for which you have not accounted.

Hard to say about the car - are you putting more into it  than the car is worth?  Are the repairs for routine things (brakes, tires,etc or is it transmission issues etc?)  Routine items - I would keep the car.  More serious items - time to look at a replacement.  You get the best financial outcome when you buy slightly used (1-2 years old with low mileage) and then keep it for a long time.

You are doing great just by thinking about these things, having goals and making a plan to accomplish them.  A budget should be a flexible/living financial plan to adapt to changing circumstances.  "Life" happens inspite of well made plans.  

You guys are doing really well for yourselves. Do you want kids? If you do I would start considering looking for a house to raise them in. I would also consider a 529 plan. 529 plans are a good way to avoid taxes like a Roth. They do have to be used on education so if kids don't come into the picture you'll have to use it on someone else's kids or take a tax/penalty hit. That's my advice if you want kids.

If you don't want kids I would consider going on some vacations since all your travel last year was for other people. Do something for yourself. Buy that car you want.

Debt - Depending on interest rates you could get rid of the student loan and car payment. If interest rates are pretty low I would let them run out, but my guess is the interest rates are higher than your savings account so you might as well take care of them.

Do you guys have any hobbies? biking, photography, bowling, flying kites, astronomy, animals, cooking, juggling, technology, collecting stuff, brewing beer, making wine, making soap, carpentry, gaming? Consider dumping some money into a hobby to make life more interesting.

Charity - You could always give some of your money away. It'll help someone and make you feel good about yourself.

Those are just my thoughts: You guys have done very well for yourselves. You have an efund, you have the 20% DP for a house, You're saving. I would spend a little bit of money on myself if I was in that situation. You've earned it.

With that much extra income, I'd pay off the car.

And start saving more for retirement.  

DH and I work with a financial ...CPA? Sorry I can't remember her credentials. But basically she helps us put together short and long term financial plans And finds the investments that meet our needs..  There are tax considerations, as you know, and the laws are always changing.  So her services have more than paid for themselves.

Also, if you haven't done so already, sit down with dh and discuss your financial goals and priorities.  Are vacations important to you? Do you want to keep saving for a house? With interest rates so low you may not want to put down more than 20% but you may want to buy as soon as possible. In our area home prices are climbing. 

These are just some things that have worked for dh and I.

Lastly, you say your dh eats cheaply on the road. I'd be more concerned that he eats healthy. When my dh travels he eats at fine restaurants but orders unhealthy meals and dessert. It has really taken its toll on his health. At 29 it is easy to bounce back; in 10 years it won't be :-)  

Looks good to me.  There are a couple of places that I would try to make some cuts to, but that's just because I'm super cheap.  Is the Life Insurance Term or Whole?  Since you don't have kids and both work, I wouldn't think you would need a super huge policy.  Also, the renter's insurance seems high to me.  I pay about $15/mo, but maybe you have a higher policy or lower deductible.

 Since you earn enough and the 2001 vehicle is becoming less reliable, I would focus on putting as much money away as you can for the next 6 months or so and then buy a newer vehicle to replace it.  I would try to avoid financing since you are able to save a large portion of your income and there is no reason to throw money away on finance charges.  You should still get some value for your 2001 at trade as well if it is still running.

I also agree with pp about looking for additional retirement savings options other than only Roths.

polooo26:

You guys are doing really well for yourselves. Do you want kids? If you do I would start considering looking for a house to raise them in. I would also consider a 529 plan. 529 plans are a good way to avoid taxes like a Roth. They do have to be used on education so if kids don't come into the picture you'll have to use it on someone else's kids or take a tax/penalty hit. That's my advice if you want kids.

If you don't want kids I would consider going on some vacations since all your travel last year was for other people. Do something for yourself. Buy that car you want.

Debt - Depending on interest rates you could get rid of the student loan and car payment. If interest rates are pretty low I would let them run out, but my guess is the interest rates are higher than your savings account so you might as well take care of them.

Do you guys have any hobbies? biking, photography, bowling, flying kites, astronomy, animals, cooking, juggling, technology, collecting stuff, brewing beer, making wine, making soap, carpentry, gaming? Consider dumping some money into a hobby to make life more interesting.

Charity - You could always give some of your money away. It'll help someone and make you feel good about yourself.

Those are just my thoughts: You guys have done very well for yourselves. You have an efund, you have the 20% DP for a house, You're saving. I would spend a little bit of money on myself if I was in that situation. You've earned it.

We have no plans for kids right now, if ever. Even though I'm 31, I'm in good health and I figure I have a few good years left.  As for a hobby, we both do love to travel. Every time we went to a party last year we would go in a few days early and explore the city. Even though we always used hotel points and frequent flier miles, it still got pricey with going to shows and dinners. I work with several charities in the area donating my time, but maybe even handing them a few extra $$ would be a great idea. Also I like your idea of "snowballing" our car loan and SL. It would be nice to be debt free! Thanks for the advice!

SunAndRain:

With that much extra income, I'd pay off the car.

And start saving more for retirement.  

DH and I work with a financial ...CPA? Sorry I can't remember her credentials. But basically she helps us put together short and long term financial plans And finds the investments that meet our needs..  There are tax considerations, as you know, and the laws are always changing.  So her services have more than paid for themselves.

Also, if you haven't done so already, sit down with dh and discuss your financial goals and priorities.  Are vacations important to you? Do you want to keep saving for a house? With interest rates so low you may not want to put down more than 20% but you may want to buy as soon as possible. In our area home prices are climbing. 

These are just some things that have worked for dh and I.

Lastly, you say your dh eats cheaply on the road. I'd be more concerned that he eats healthy. When my dh travels he eats at fine restaurants but orders unhealthy meals and dessert. It has really taken its toll on his health. At 29 it is easy to bounce back; in 10 years it won't be :-)  

  

H is really good about eating right, working out and he's in great health. Most of the hotels have nice gyms. He gets feed on the airplane and at the hotels and there are always a lot of healthy choices. When he does go to potbelly and subway he gets salads with low cal dressing. There are not a lot of dinners because that's the time of day he's working at the events.

As for the other advice, the inventory in our area is pretty dismal in our price range. We may save up a little more and get a more expensive home. We do live in one of the more expensive cities in Michigan, and we would like to stay here if we can afford it.

H's uncle is a CPA and worked for the IRS. I really like idea of maybe sitting down with him where we can all discuss other investment and retirement options. Thanks for the advice, it's a great idea!