<prompt> Human: Hello there: we are a family of 5. 3 kids and us. My weekly take home is 1393.We have 20K in unsecured debt, but low interest which Im paying off monthly.2 Car payments 220 6000 left and 36018000 left. My wife does not work full time, but she has an amazon book store which brings in on an average 300 a month.My IRA is at 44000, out of which 10000 is Roth.We want to add an extension to our house. The contractor bid 35000. We will negotiate it down to 30000.Based on the interest rate and my credit score, If I borrow 30000 as home improvement loan, my monthly payment is going to be 275 a month.I forgot to mention, our Mortgage payment is 1867.I was wondering how should I manage the cost of borrowing the 30000 with my current salary.a Take money out from IRA and pay off the car. This will free the 220 a month to pay for the Home Improvement loan Monthly installment.b Withdraw everything from the IRA and use that to finance the construction?c Hybrid: Withdraw half from the IRA and remaining from the bank and use that to fund the construction?I could really use some help here!Thanks a bunch!Edit: Here is the monthly budget:Yearly Gross: 98000.Weekly take home: 1393 Expenses: Mortgage: 1867 Car 1: 220 Car 2: 360 Loan payment : 430 Cable: 75 basic internet Netflix: 12:00 Car insurance : 175 Heating bill : 300 Budget plan Student loan : 204 Phone bill: 3 lines 160 ATT Grocery: 400 Gas: 200 And yes, Im interviewing for a side job. Im an Engineer at a premier electronics device manufacturer.Age:33. First generation immigrant.Reason for upgrade: Another baby coming in. I know, I know ! But being from a very small family, when my parents died early, us two brothers had tough time. So I wanted a larger family.  <response>: Post a full monthly budget so better advice can be given. Combine yearly income: 70,464. Currently as it stands, 31.7 of your monthly combined income goes to your mortgage 33.5 without your wifes amazon book store. Thats kind of cutting it. You also currently have 44,000 in outstanding debt unsecured debt cars. You want to assume another 30,000 for home upgrades, thus adding another 275 bill a month. 36.5 of your combined income will be spent on your mortgage home upgrade. And youll now have 74,000 in outstanding debt if you dont utilize your IRA. A B C Dont take out your IRA. Yes, if you just take out the principle from Roth, you wont be penalized nor pay taxes, but youre raiding your future self. All those potential gains will be swept aside for a 30,000 home upgrade. If you take any part of the Traditional IRA or Roths gains, you will be taxed plus hit with a 10 penalty all just for a 30,000 home upgrade. In the end you assume more debt and destroy your retirement nest egg - all for what? A home upgrade?My recommendation: budget for that 30,000 home upgrade. Create a home upgrade fund and treat that as a monthly bill. Keep your IRA intact. 