Difficult choices; splurge or save

<br><br> In Toronto, a couple we'll call Tim and Kathleen are busy with their careers. Tim, 35, is a manager for a large company. Kathleen, 33, is on maternity leave until early 2011 when she will return to her job as a health-care professional. Their first child is nearly one year old. As new parents with a $286,000 mortgage on their $400,000 house, a wish to upgrade to a better house and an idea that they would like to retire in comfort in 30 years, they want to balance their goals and figure out a way to pay for all of them on an income of $7,450 per month. <br><br>