Change Plans For Baby?

Will and his wife should stop working on their debt snowball temporarily now that they know they're pregnant.

QUESTION: Will and his wife have $11,000 in debt, they bring home $43,000 a year, and they’re renting a house.  They just found out they’re pregnant.  They’re working on their debt snowball - should they change their financial plans to prepare for the baby?

ANSWER: Don’t work the standard Baby Steps right now.  For the next nine months, stop your debt snowball and put as much as you can in your fully-funded emergency fund.  That way, if something happens and you need that money, you’ll have it.  And if something doesn’t happen, you’ll have about $11,000 saved up within 9 months and you can completely pay off your debt.