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BIG changes are on the horizon for DH and I, and I'm hoping the folks here can help me put some of my financial house in better order.

We finally got all of our credit cards paid off in December! The day after I sent the final payment we learned that I'm pregnant! *gulp*

Basic financial picture:

Credit Card debt: $0!
DH Student loan #1 - ~$42,000 @ 2.75%
DH Student loan #2 - $2,700 @ ~9%
Legal fees from DH's divorce - $500/mo. until Oct. '07 ($3,500 remaining) @ 0%
"Property Settlement" from DH's divorce - $1,000/mo. until Jan 2010 @ 0%

Currently $3,500, growing at a minimum of $1500/mo.
My retirement - ~$70,000 combined, all 100% vested later this year
DH's retirement - $9,000 (judge made him give his entire retirement to his ex., and this is all he's been able to build up so far. don't get divorced in Iowa, kids)

Upcoming expenses:
home repair - $1,000 (will be paid in cash)
"new" car - budgeting $10,000, would like to pay in cash
"baby stuff" - no idea what we even need, so this is TBD

I'm pretty freaked out by things right now, as we're planning on me quitting my job after the baby is born (well, after my paid maternity leave). Living off of DH's salary isn't that big of a deal, except when you factor in the $1,000/mo being paid to his ex (it isn't even alimony or spousal support, so we don't even get tax breaks for paying it).

Car - right now, we have a 2001 VW TDI Golf we use as a primary car and a 1997 Chevy S-10 Truck. The Golf gets stellar milage (50mpg) so we're keeping it as DH's commuter car (not possible for him to take public transit to work), but neither one of us feels good about having an infant in a 2-seater truck. We'd like to sell it (probably can get $3500 for it) and get something else instead (haven't settled on what, just that we're looking to spend $10,000). Tenative date for vehicle purchase is August or so.

Savings - we're trying to put $2,000+ away a month, but my clothing and eating issues have put something of a hamper on that goal. Things have settled a bit, so we're hoping to make the $2k/mo starting this month. Over time, the amount going into savings should grow beyond that.

Part of our overall plan is to slowly trim our budget down to what it will be when I quit working. We've made some good progress so far, but still have a ways to go. It's a process.

So, to the point - where do you Fools think we should be focusing our money? At 0% interest, I see no point in paying off the legal fees early, but should we pay off the 9% student loans? Or, should we just throw everything into savings and see where we are in July? I'm feeling a bit paniced about the whole thing right now, and would really appreicate any input you might have!
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