It does sound like a sucky situation. I'm not sure your husband is totally wrong though. Yes, going out and buying a brand new car - and an expensive one at that - probably isn't the right thing to do. However, relying on '99 cars, even after the baby comes, well, is that a good idea? What are the chances that you will HAVE to find a place for it in your budget in a few months anyway...
I think it would be great for you to stay home and I know that's what you want, but maybe this isn't the right time? If you can't find a part time job that would pay more than daycare expenses, then maybe it is best to just keep your current job? I mean, babies do cost a lot of money. I'd be very concerned that it already looks so tight. What happens if you have unexpected expenses..
My sister and BIL were in pretty much the same spot. They were very stable financially, then she quit to raise the kiddo and got a part time that he could go to with her. They have savings for 6 months that they could live on in an emergency. They also paid off a new car before all of this. And things are VERY tight for them still.
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