<prompt> Human: Ive finally saved up enough where I can pay off my car note in full, and it will leave me with around 2000 as emergency funds, but will pretty much liquidate all else as a result. I currently pay around 500 a month on my car, so that will become savings as soon as it is hypothetically paid off. I have a fully vested position in municipal government and feel very confident I can keep this job as long as I would like, so income security is pretty a non-factor for the short-mid term. Based on my current budget, I will save about 1000 per month. If it matters, the car is a 2008 and has about 6500 on the note.Upcoming expenses will be two spaced about 1 month apart 1900 tuition payments, one in May and one in June, and then another 3700 in July. However, the July payment can be stafford loan financed, or split into 4 monthly payments over the term, and may also be lowered by tuition assistance from my employer. Ill also be paying off about 700 in credit card debt over the next two billing cycles.The interest rate on my car note is 2.99 plus 12 per month for lien insurance. The other option I have is to put a large but not the full amount chunk toward 30,000 of currently deferred student loan debt at an effective rate of around 4.75 some is not earning interest, a bunch is earning at 6.25. My logic is that I should just pay off the car because I can, and because if I dont Ill be continually financing a depreciating asset, whereas with my student loan debt, I hopefully will be seeing appreciation from higher income on graduation masters in public admin.. Also, I wont see any immediate savings from paying off my student loan, because I dont make a monthly payment on that yet I just try to pay off all my interest at the end of or sporadically throughout the year. Is this a sound plan? Should I waithold on to savings? Invest in an index fund or something? Why or why not? Help me out, PF! EDIT: I think Ive been convinced to just hold on to the savings for now. As far as it sits, currently around 6 months of living expenses, which will be drained slightly as I pay my tuition in the Summer and Fall. The car can still be paid off within a year at my current payment schedule and then I can move on to covering the remainder of my tuition and paying off student loans at that time. I think emergency savings is probably the best use for this money at this time. Thanks to those who weighed in.  <response>: If you are going to do anything you would certainly want to pay down the higher interest rate student loans, rather than the lower interest rate car payment. I would be a bit concerned with taking your savings down so low given the upcoming expenses you have. 