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Ask Dave

Save For Baby, Or Keep Snowballing?

Dave says keep doing the debt snowball until a baby's on the way, then stop it and pile up the cash.

QUESTION: Laura and her husband want to have another baby and are in the middle of their debt snowball. Should they keep paying off debt or save up the cash in case something goes wrong?

ANSWER: Wait until the baby is on the way. When you’re pregnant, then stop the debt snowball and pile up the cash. You could be pregnant next week or next year, but work the plan until there is something to think about. If you have a bunch of cash saved up and you have a baby and everything’s all right, you can put that money back on the debt snowball. It’s still debt snowball baby unless you needed it for the baby.