Budget & Reaching our goals

[vmars]

Net Income - $5,240
Mortgage/Taxes/Ins - $1,942
Auto Ins - $207
Gas - $200
Car Maintenance - $85
Cellphones/Internet/TV/All Utilities - $400
Groceries - $400
Home Supplies - $250
Misc Spending - $400 (incl. going out to eat, entertainment, dr visits, etc.)
Savings - $1,300

DH has a mandatory 6.5% pension contribution. I recently upped by contribution to 10% to my 401(k) with a 7% employer match.

We have no debt besides our mortgage. We bought our house in June and put down 20%. We have $15k in a money market, $34k in savings bonds, & I have $4k in my 401(k).

Other variables -- I will get a Christmas bonus most years equal to 1 week's salary. DH's parents will sometimes gift us $ - amounts vary between $5k and sometimes $10k. Not guaranteed.

Not sure if I should be putting more $ towards my 401(k) or if DH should start a deferred comp plan available at work.

We are both 27 years old. DH just got his first job after law school in January - he works at a courthouse - so not going to be making crazy attorney money, but a good salary & good benefits. I've been working full time for 4 years for a law firm.

Our goals are to have a child -- possibly start TTC as soon as February 2013. We'd like to go to Hawaii one more time before kids. We live in a HCOL area and a good daycare can run upwards of $1k per month.

Should we put more towards retirement or savings? Not sure what we can cut - we try and be mindful of our budget, but tend to go a little over most months.

[Deleted]

Your budget looks okay and you have adequate cash savings IMO so I would contribute the max for Roth IRAs for both of you ($416.66 x 2) per month from the $1300 savings amount.

[Deleted]

See, if you are thinking about TTC, I would probably start a small "baby fund" with some of the extra $ each month to go towards daycare, start up costs, etc. And then the remainder I would probably stock into retirement as well.

[SJ]

Instead of adding more to a 401K I would open a Roth IRA and try to max them out ($5K each per year). You have other savings that can serve as emergency/baby fund. You don't have to work all $800+/month for the Roth's into your budget but can maybe do half and then catch up with bonuses or extra money. It just has to be in there by April 15th of the next tax year.