To me, these are the obvious ones (some you've called out):
- Clothing
- 50/month internet
- 150/month in entertainment after subscribing to many subscription services (and not including social dining out)
- 85/month on sports
- Umbrella Insurance - what does it cover that your other insurance is not covering?
It wasn't clear to me if this budget was just for you, or for both you and your BF. Either way, there is a lot of fat in every category which can be cut.
Clothing I've worked in software for the last 10 years. Unless I was consulting, no one care what I wore. Of course, I'm a guy, so I can where t-shirt, jeans, and an optional hoodie without being questioned. While my wife was a teacher (her work required professional dress) our combined clothing spending for the year was typically around $600 year. With a new toddler in the house, that only went up to $622 for the three of us.
Internet Call your cable company and get the $30-$40 unadvertised rate. It will be 3Mb/s and will work great for just about everything you need - including YouTube streaming (but not HD streaming). TiVo supports a lot of offline viewing, so you can get HD content that way (or through RedBox). That's $120-$240/year in your pocket.
Entertainment $1800/year in miscellaneous entertainment is really high considering you also have a thousand dollars in sports (which is not entertainment, but I would consider liesure activity). As a rough estimate, you are spending $8 a day to entertain yourself and your friends. And that's not including vacation. You shouldn't need a constant stream of distractions to fill fulfilled. If it's peer related spending (activities with friends), continue to go out with your peers, but opt for cheaper options when possible. A night at home with a book or movie from the library costs $0 and provides as much entertainment value as acquiring that same book or movie from a paid source (though might not be as timely).
Sports Being part of sports clubs isn't bad, but as mentioned above, it sounds like you are over paying for your liesure activities. I think this falls more into personal choice than an area to definitely cut back on, but you can spend a lot less to stay active. Even gym memberships are cheaper than your 2012 expenses for Sport #1 and #2.
Umbrella Insurance If you don't know what it covers, why have it? As far as I'm aware, my employer has always provided fairly comprehensive insurance in addition to the medical policies. In my case I get 2x salary life insurance policy with no out of pocket expenses, and my medical policy covers short and long term disability. Between that and your renter's insurance, what coverage does your umbrella policy give you that you can't afford out of pocket if necessary? If it doesn't cover anything additional or significant and the statistical likelihood of you filing a claim is low, then you are just gambling.
If you haven't already, look at
MMM's 2012 spending. Not only is a good baseline, but it's actually not that hard to beat. We have a similar family size (2 adults, 1 kid), and our total last year without mortgage was about $5,000 less than MMMs budget (which included living in a more expensive city and $4,000 of student loan repayment). I consider our lifestyle fairly lavish (two nice cars, iPhones, organic food, gym membership, dine out twice a week (in addition to lunches out), new clothes whenever we find something we like (at a price we like), etc.).
I think the big thing is reducing across the board. You can probably cut 10-20% of your non-housing related spending and still live lavishly. That also means 10-20% less that you have to make to sustain FI and 10-20% more you can contribute to your goal.