<prompt> Human: I am trying to figure out what the best course is for me given my situation. I currently live with my parents no rent or utilities, I have a paid-off car, and I am maxing my 401k and Roth IRA contribution amounts plus the 401k match from my employer. My parents borrowed for my education and the current balances are: 4,300 3.5 and 25,000 4.99. I pay 1,000 per month against the smaller loan, and my parents pay 550 against the larger. Ill start putting 1,000 against the larger loan in four months when the other one is paid off. With no other major living expenses except for my car insurance and gas, how should I allocate leftover funds at the end of the month? How much should my emergency fund be, if six months of expenses is just my monthly loan payments and my car expenses? I only have about 1,000 in a dedicated savings account. My savings would be higher, but I opened a Roth IRA in December last year, and I am trying to get as close to 5,500 by the deadline in April for 2017 contributions. My family can comfortably afford the combined 1,550 we are paying against the debt. Once I get my savings to the right level, I plan to put any extra money going forward against the loans.  <response>: How much should my emergency fund be, if six months of expenses is just my monthly loan payments and my car expenses?My approach is to think of the most realistic worst case scenario and build the EF accordingly. That said, because youre paying off these loans but still living at home, I would save 1 month of worst case scenario expenses, and then dedicate the rest of your money to the loans. 