<prompt> Human: Hi PF,So this morning, our CFO notified the company of some highly positive changes to the 401k.Currently, we get 5037; match up to 637; of our income I contribute 637; company contributes 337;. I am currently contributing to get the full match.Under the new changes, after 637;, the company contributes 2537; on up to 1037;. This means that if I contribute 1037;, they would match 437;. In order for me to take advantage of the full match, Id have to contribute another 437; of my income to get an extra 137; of match.My initial thought was hell yeah more free money, but thinking about it further, my budget is going to be somewhat tight the next 6 months while my wife and I get used to paying for daycare for our newborn and cleaning up some debt. Should I increase the contribution in September when these changes take effect? Or wait until 2019 when our debt is more cleared?Since youre going to ask- My wife and I currently bring about 110,000 per year before taxes401KHSA contributions. She also gets a 5037; match on 637;, so were already doing that. Current take home is 6000 monthly once she returns to work in 2 weeks. This is also when the following budget will kick in-Mortgage- 1000 monthly could reduce this if need be, we pay 200 extra each monthDaycare- 210weekFood household goods- 400 monthly- includes some formula for the little one we buy at CostcoPets- 30monthEntertainment- 50monthRestaurantsTakeout- 75monthAuto repair- 50month into a sinking fundGas- 250month. We both have significant commutesProperty tax sinking fund not part of escrow on mortgage- 400monthBirthdaysHolidays sinking fund- 100month goal is to have 500 in the sinking fund to cover all the holiday shopping529- 100month. Considering temporarily stopping this to help with debt.Travel- 100month sinking fund. Wife and I visit family in CA 1-2x per year.Car payment- 100month. will be cleared up in next 8-10 monthsCredit cards- 1100 per month for the next 6 months will completely clear the 1 CC weve racked up. Everything else is paid in full each month.Student Loans- 830 month. Working to clear this quickly.Im leaning toward upping my 401K contribution in January of 2019. Thats only 4 months given the effective date of 91 for the changes. Or do I have enough room to take the increase now?EDIT: After reviewing all of your suggestions as well as looking at our budget, I am leaning toward waiting until at least the CC debt is 10037; cleared. We have July and August to adjust to our new budget once my wife goes back to work and we start paying for daycare. By September which is when the changes take effect I think well have an idea of how much wiggle room well have, and well be able to plan accordingly for the rest of this year.Assistant: If Im you, this is what Id do. Im making sure I first have an emergency fund of at least 1k. I contribute 037; to retirement until the debt is paid to zero. Once the debt is at zero and Im debt free, I build up my emergency fund to 3-6 months expenses. THEN I invest at a rate of 1537; gross incomeHuman: Sounds like rDaveRamsey. I regularly contribute to that community and understand the Baby Steps quite well. The only part of the Baby Steps I adamantly dont agree with is not contributing to 401ks up to the match while on Baby Step 2.  <response>: Yeah, thats because arguing not to contribute to get at least the match is really awful advice. Paying debt at things like 20 interest or less is throwing away free money when you can get a 25, 50, or even 100 match contribution with that money. 