Nothing Can Make You Happier…Or Scare You More

Dear Dave,

My wife and I recently learned she’s pregnant. She’s about to begin her second trimester, and we’re both really excited. There is a bit of concern, though. During a detailed ultrasound, the doctor found an issue that might mean our baby could need minor surgery soon after delivery. Financially, we’re in Baby Step 2 of your plan. With the extra bills after the baby’s born, should we save money in a sinking fund for the added expenses while we continue paying off debt?

Jared

Dear Jared,

Congratulations on the new baby! I know you’re both probably on an emotional rollercoaster right now, what with the pregnancy and the possibility of surgery for your little one. Make sure you pray and hug on each other a lot in the days ahead, okay? Doctors can do all kinds of incredible things, but including God in any equation is a good idea.

Now, should you start a sinking fund for the delivery and any extra expenses while you’re trying to pay off debt? No. When a baby’s on the way, I always recommend folks press pause—not stop—on the Baby Steps and start piling up as much cash as possible. Then, when mom and the baby come home, we pay the bills, push play on the Baby Steps and get back to work on the debt snowball.

Concentrate on building the biggest pile of cash you can over the next several months. And don’t worry about how big that pile of cash gets. There’s no such thing as too big in this case, because after you pay everything insurance doesn’t cover, you’ll put anything that’s left over right back into paying off debt.

You’re learning something early on about being a parent, Jared. There’s nothing in the world that can make you happier—or scare you more—than a baby. I’m praying for you and your family. And I hope that little one is born happy, and healthy and perfect.

Dave