Thanks for all the great comments and emails about my kitchen dilemma. After more research and evaluating more options we have decided to do it all (except for the bathroom)! How, you ask well compromise.. here is the plan:
Kitchen: Instead of granite I have decided on high definition laminate. To save even more $$$ we are going to have them fabricated and install ourselves. Tile the back splash ourselves too. I will purchase the tile at Floor & Decor a huge discount tile outlet in Arlington. Appliances (sink, faucet, cook top and vent hood) we will find scratch and dent deals and also check out the builders surplus. Luckily we already have the stainless fridge and microwave. We will just wait on the oven and dishwasher. Our plan is to spend about $1,500. I will be blogging about our finds and progress.
With axing the granite we save a ton of money enough leftover for other projects throughout the year. When we really weighted the granite we realized it wasn't that important anymore we would rather do more with that money. Really.... who will think less of me and my home by not having granite.... and if they do well they aren't good friends anyway, right?