<prompt> Human: My family and I live in the US and we are facing a turning point in our financial future. We are a one income family of 4 that includes two kids under 3. Only debt is our mortgage.At the rate we are spending vs monthly income, we will officially be at 0.0 in two months. We have the option to withdraw a one lump sum from my partners retirement account at a penalty. After penalties and taxes, this sum could buy us 6-7 months, with 2 months padding for emergencies. Here is the catch. If we cash out, not only do we see penalties and lose compounding interest, but my partner loses the chance to become fully vested state funded retirement and could miss out on a monthly income at retirement age.Our goal is to keep the one-income life style throw in a few odd jobs so we can spend more time with our children before they are in school full time. Daycare costs for two children are tremendous, nulling out my partner working part time or myself working two full time jobs. We have no family locally to pitch in. The good news is I still have a 403b that is being matched at my place of employment.What do you think? Cash out or look for other ways? temporarily solved. My wife and I sucked it up, and she is now working part time in the evenings. We did not dip into any retirement or savings account.  <response>: After you cash out and spend all of that money - then what?You are in the same spot and now you dont have a retirement. You have to max out whatever earning potential you have. One person can work m-f the other can deliver pizzas on the weekends. Once you have a stable income figure you need to make an ironclad budget. You might have to cut lifestyle to make your budget work. Your house may be too expensive? Post your expenses and your income and people here will offer suggestions.Its vital to have an emergency fund that is cash in the bank, not a credit card in your pocket. 