<prompt> Human: My wife and I are about to pay off one of our cars in the next two months, leaving us with 500 US extra a month. It was originally only 300 a month but we added an extra 200 to pay it off as fast as possible. I still have one car that has about 8200 original loan was 14k at what I believe was 2.49 for 4 years to which I am paying the minimum of 300 a month on. We only have one months savings for an emergency fund.nbsp;My question is, should we apply the 500 to my car and try to pay that off as quickly as possible, throw the money into our emergency savings or split it among the two? We are pretty frugal, so we have grown accustom to living without the 500 and plan to continue doing so. I know the FAQ says to have an emergency fund, but putting 800 towards my car would pay it off in less than a year.nbsp;I originally planned to save 6 months up of emergency funds, then start putting the 500 into my 401k. I am already at my max employer match for my 401k, but having both cars paid off is tempting, as that would leave us with 800 to put into emergency and retirement.nbsp;Any thoughts or advice?  <response>: Eliminate the other car payment as fast as possible. Your 1 month emergency fund should cover most emergencies, also you are not obligated on the extra 800 you will be putting into paying off the next car, if an emergency should arise you will have 1 months expenses 800 to help cover that event. As you stated paying off the car should take around 10-11 months. After that debt is gone, you will have 1100 per month to build your 6 month emergency fund. Without knowing your complete financial situation I will say a 6 month emergency fund is around 10-20k, well say 18k is the goal, of which you currently have 1 month or 3k saved. At 1100 per month your emergency fund will be fully funded in around 14 months. This means in 24 months you will have no debt, a 6 month emergency fund and will be in position to pump alot of money into the 401k. 