<prompt> Human: For starters, heres our current budget:Monthly income: 3420 lowballed; he works on commission Monthly Expenses Daycare: 516 Groceries: 500 Household Extras: 100 Electricity: 160 Mortgage: 490 WaterTrash: 70 Credit Card 1 mine: 25 Credit Card 2 mine: 30 Credit Card 3 his: 55 Credit Card 4 his: 45 Student Loan Payments: 178 Truck Payment: 100 CableInternet: 190 Cell Phone: 70 Gas: 150 NetflixHulu: 18 Gym: 33 Car Insurance: 75 Clothing: 50 Entertainment: 75 Lawn: 25-50 Total Monthly Expenses: 3010 Monthly Leftover Cash: 410-ish This looks to put us at about 410 leftover at the end of each month. I have no idea how good or bad this is. As of right now, we do not have an emergency fund of any kind. I guess I didnt realize how important this was until I started following this subreddit. Weve been very fortunate to not have any real emergencies, so I guess Ive just sort of looked the other way. If I understand right, our emergency fund should have at minimum 8652, and by reading the FAQ I saw that the first thing we should focus on is building that up. However, I guess my question is this: If our budget is exactly precise which I know it wont be, we would have to focus on building only that for the next 21 months. Am I right that we shouldnt focus on paying down debts until we have built this fund? Or is there some way we should be doing both? He has about 1300 of credit card debt and I have about 1200. My interest rates on my two cards are at about 18.5, and Im not currently sure about his. I was always under the impression that paying the minimum only each month lowers your credit score. Is that incorrect? I know carrying a high percentage of balance on the card does. Ive been doing so much reading here lately that Im really overwhelmed. As far as 401k, he is already contributing the highest amount that his company matches, so were good there. My job doesnt offer a 401k, but I have one left over from my last job. What should I do with that? Im really motivated to turn our financial situation around; Im tired of constantly living paycheck to paycheck with zero future plans financially. I really dont know how bad of shape were in because all of our friends are still in school and without children or mortgages or responsibilities whatsoever, so theres little for me to compare to. Any input you guys might have would be greatly appreciated!  <response>: Wow, your living expenses are fairly low, I am guess you are somewhere where cost of living is good. If you have hulu and netflix, I would suggest nixing the cable. I have hulu and a chromecast and I dont miss it at all. Also, those credit card interest rates are pretty big. Pay more than the minimum on those, and that will help a lot in the long run. 