<prompt> Human: So I have a dilemma that I need to resolve. This is LONG post, please bear with me as there is some history here, but really important questions that I need answered.The last year of my life has been the best and worst year that I have ever had the privilege of surviving through. Gained a daughter, lost a job, gained a new better job, lost a legal battle, etc... Up until I lost my last job I was surviving paycheck to paycheck, and now I actually am able to start saving, but Im not sure what my next steps are. I also have a huge dilemma that Im hoping someone can assist with.Annual Salary: 75,200Take Home: 3800 A MonthRent: 625Cell Phone 3 Users: 225Electric: 130Cable: 70Car Insurance: 90YMCA: 20Laundry Budget: 50 Student Loans: 110 2600 RemainingCar1 Loan: 280 4500 RemainingCar2 Loan 390 18,000 RemainingDebt to Parents due to legal battle 9500 Remaining, havent started paying yetApproximately 1500 various medical and unpaid bills in collections from unemploymentGas Food Budget for the Year: 750This comes from 350 a month fuel needs and 350 Food with some wiggle roomRecreation Money 300Primarily money for wife and 7 month old daughter while Im at workMoney put into savings: 500 anything left over rarely much additionalI just saved enough money to pay off the courts, but as you can see need to start paying down the loan to my parents, so effectively at this exact moment in my life my savings is 0. I am really stressed from the recent battle and years of living paycheck to paycheck. Although I have a great job that I would love to work at for the next 30 years I need to be realistic that unexpected things happen, while at the same time not sacrifice my current families happiness by needing to stress over every dollar that has been spent like we used to do for nearly 10 years.My work contributes 5 to my 401K, I contribute currently 0, but if I contribute another 6 they will match an additional 3. As I would like to ensure my familys future, I feel I should be utilizing this, but I again am concerned over sacrificing our current happiness as this will eat up another 350 a month. Our goal in the near future is to get a house or at least move closer to work in the next year or two, but my credit score needs to get a bit better 650, and we need to have a down payment if we go the route of a house.Now I know that was a lot, but here is my dilemma: I have 33,800 in an etf retirement fund, which is strictly my contributions; my old employer has matched this 100 so in total there is 67,600 in this account. If I move this to another account, such as my 401K I can move the full amount into this account. However I have the option of withdrawing this money. In doing so I lose my employers contributions, and 20 due to their early withdrawal fee so I would get 27,000 and lose the rest, which is a lot of money. With this money, I could pay off collections, parents, and the First car, student loans, and change my income to around 900 a month while having actual money in savings. I feel this would then allow us a fair amount of breathing room and allow us to enjoy our money as well as be able to safely plan for the future, but I dont know if this is the best option, or if there is a better way to handle this money or what I should do. Im really tired of being stressed, tired of making bad choices, and just want to know what I SHOULD be doing with my money. Is there possibly a better way that allows me to use the full amount of this money? I know this was a lot I think you for sticking with this. If I dont hear back from anyone I plan on cashing out this account and going through with this plan and re-evaluate things from there.Assistant: Dont cash out your retirement. You are not even close to being in jeopardy. You have a good income, you just need to make every dollar count.Make yourself a PF to do list.1. Save up 2500 cash2. Use all disposable income to retire debts by rate of interest. 3. Save up 6 months of expenses in cash.Your cell phone bill is insane. There has to be a way to trim that down. Make a plan, be smart, dont panic, dont tap your retirement. You will be fine.Human: OP, this is correct. Your situation is not anywhere close to justifying cashing out. According to your numbers, you would be lighting 40,600 on fire to get access to 27,000.Assistant: This is true, but everything that I am understanding and hearing is that money now is more valuable then money later especially with non-understanding of what the future market has to hold. By being able to cash this out now I would not only feel that I am buying piece of mind for the current time period, I would be able to tuck away a much larger sum today. In doing this I would have a backup savings almost immediately, severely reduce my debt to income ratio, and be able to focus on investing working on the new income without concern of day to day expenditures. Maybe I am looking at this wrong, but if I then re-maximize my 401K contributions, in 4 years I would have replaced this money, and essentially would have been able to save invest 43,000 additional income in savings. Granted I am sure some of that will go towards other needs.I originally had no intentions of touching this money, but everything I am getting fed from others around me is telling me otherwise, and to be honest, doing it the safe way has not worked for me at all. After 10 years I have no income, high stress, and quite a few debts. Granted much of this was from a lower income and poorer choices, but in every attempt to save for the future has led me to just not enjoy the present in the slightest. The quality of living just feels really poor in comparison to others at my age 34. Personally yes Im losing a lot, but I have been seeing this as a way of just hitting a reset button on my financial life and starting over.Also, I do appreciate the advice, last month I would have said the same as you guys as such not tryingto argue, just trying to explain where my head is right now.  <response>: You know this is like borrowing money at 60 interest, not good. 