Paying down the rest of our debt and putting only a minimum in savings. (Dave Ramsey Baby Step 2)
Going back to paying minimums on debt while stashing away all the extra cash in savings in order to pay for an adoption that a may or may not happen in a year’s time.
We have 2 credit card debts left and if we throw all our extra income toward those debts we should be debt free by year’s end.
We will be Home Study approved by the end of January and will soon sign on with an agency. Adoption requires money in increments throughout the process PLUS the time off work (we both work and we both HAVE to work) with a new baby/child.
If we can pay off our debt by the end of the year but don’t have money in savings to cover the adoption cost and time off of work, then we can’t accept any adoption scenarios that might come our way. (However, this is wishful thinking because there is a good chance that no matches will be made until a year or longer down the road.)
If we were to take our extra cash and save it while just paying minimums on our debt, we wouldn’t be debt free for at least another year, but we would have the cash to cover adoption expenses and at least 2 months off of work for one of us.
So which is the smarter choice?
Think about it this way…if I were pregnant and had 9 months to either save cash for a baby or pay off my debt, which would be the best choice?