What To Do Financially to Prepare For Baby?
Should Will and his wife alter their budget plans to make way for their baby?
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.