Life Situation:
Married
1 kid (2) and hoping for another soon
Husband in a PhD program 2 years in 3 to go
Gross Salary/Wages: $34,000 (stipend)
I pick up odd jobs - last year I earned $11,000. This year I'm on track for about $12,000. They are not stable and I can't count on them.
Pre-tax deductions: None last year
Other Ordinary Income: None
Adjusted Gross Income: $45,000
Taxes: We paid just under $3,000 since I had to pay self-employment taxes
Current expenses:
Rent: $1,560
Utilities: $88
Life insurance: $32 (for both)
Car insurance: $120
Renters: $6
Church tithe: $350 (Not optional in our book)
Monthly subscriptions: $18
Food: $400 a month
Gas: $130
Assets: 10 year old car
$2,500 in a Roth
$9,000 in saving account
Liabilities: None
Short term goals: 2 more kids(5 years) and a house (5-7 years)
Specific Question(s): We were not planning on saving any money during graduate school. We started 2 years ago with $11,000 in debt and we were hoping just to break even. I have been able to keep pretty steady employment though and we have been doing much better than we expected. Our health insurance is free through the university by the way, if anyone is wondering. My questions are...
1) Should we just leave money in a saving account since we are hoping to buy a house or have another kid in the next 5 years?
2) Should our main focus be saving for retirement or a home?
Any other advice is welcomed too.