<prompt> Human: I changed careers last year and took a pretty substantial pay cut but my health, stress, and family time is way better...Im happier!. I made lots of changes to my budget I dont even have internet at home anymore! but after a few emergencies, Ive blown through all my savings over the last twelve months and am still coming up short now. I sold a painting that gave me enough about 4k to do ONE of the following:1. I can pay a couple of pressing things, and then put the money in an emergency fund. This would be enough for 2-3 months of worst-case-scenario living mortgage, utilities, etc.2. I can use it to pay off lots more car, medical bills, small credit cards, etc and free up enough monthly cash to be able to meet and keep a budget without going more into debt. I have someone I trust pushing me towards option one, but I feel like 2 would give me the breathing room I need. Besides, if I keep coming up short each month, wont my emergency fund be gone within a few months anyways??Whatcha think?  <response>: Paying interest on credit cards IS an emergency. Pay them off immediately. If you have a high per month expense that you can get rid of with this, pay it off. Usually medical bills are interest free? If not, call them up to see about an interest free payment plan. End note: given you have credit card debt, reducing monthly expenses will only help if you change how you use your money. You can pay off things, but you will be back in the same position if you keep spending the way you have. Your car is too expensive, your credit cards shouldnt have been charged up unless you could pay them off in full each month. Change your spending so you arent back in the same boat. Good luck! 