<prompt> Human: Hey rPersonalFinance. I have a quandary that has been sort of burning in the back of mind for a while. My wife and I are both 25 and graduated from college less than 2 years ago, making about 47k after tax, 401k, healthdental a year combined.Right now, we pay 900 a month for rent, about 475 a month for 2 car payments not ideal, but both cars were necessary at the time we bought them and about 425 a month for student loans. All of our other expenses are pretty minimal: non-contract phones, no expensive vacations or taste in food. With that pretty burdensome load, we can get together maybe 400 a month on a good month to put into savings, which will hopefully go to a down payment on a house in early 2014. So my question is this: Am I doing the right thing with that 400? Im pretty young, I dont have an emergency fund and right now we dont have a lot of fun with our disposable income. Should I be focusing so hard on trying to get a house or should I take a step back and make sure I have my other ducks in a row before I think about that?Edit: This is my budget.Net Income: 3794 sometimes more when I can get overtime at workExpense: CostRent: 900Phones: 87Power: 80Gas: 350Grocery: 400Car Payments: 479Student Loans: 426Internet I dont have TV: 51EntertainmentEating out: 200Personal clothes, starbucks, whatever: 200 100 eachCar Insurance: 105Home necessities kitchen gadgets, knick knacks, whatever: 100Leftover for savings: 416  <response>: I think youre spending way more than you think. 47K is 3,916 every month. After your listed expenses you should have 2,116. Where is that money going? Obviously some of it goes towards gas, utilities unless theyre included in rent?, groceries.400 a month for the next year will net you 4,800. Is the kind of house youre looking at cost around 20,000? Thats what you can afford with your downpayment. It sounds like you live in a low cost area, but I doubt its that low cost. Youre doing well in that youre not going into more debt, youre contributing to your 401K, and you have a monthly surplus. So half the battle is already won. But I dont see you buying a house in the next year or even 2 unless you find a way to save a lot more. I would prioritize saving up an emergency fund of at least 1,000 and then start attacking your car and student loans.You really dont want to be in a house that will suck up a huge portion of your income, especially when you already have almost 1,000 in monthly debt service. 