<prompt> Human: Hello rpf!So the story begins with my father passing away about a year ago, leaving just me and my mom with some money but my mom having not worked had to go back to work. We did have some inheritrance as my grandmother also passed away around that time, as well as my father having a life insurance policy. Here is where we stand today.Condo worth 250k-Original Mortage paid off-Line of credit 98k 500month50k in an annuity, my mom had almost 0 retirement savings and at her age we put 50k of the inheritancelife insurance money into an annuity for guaranteed income in her retirement. 20-25k in paid off vehicles 2013 Hyundai Sonata and 2005 Toyota Corolla7k in a 401k from my moms old job15years ago, hasnt been touched in years5k in a ira from my moms old job 15years ago, hasnt been touched in years30k in an inherited ira from my grandmother in my mothers name85k in cash sitting in a BOA money market accountMy mom is now working making about 2400month before taxes while our monthly expenses are close to 4000month.We live pretty frugally, living in an expensive part of new york we could probably get cost of living down to 3500month but that is with almost 0 spend on entertainment. I am currently working a summer job making 8hour 40 hours a week and putting most of my money into a savings account to eventually pay student loandsemergency fundSo, we have 85k sitting in the bank and 1000 of it is just going to living expensnses everything money because of our sitauation, my mom is defintely in a situation at work where her income will go up through raises over the next few years. I was thinking paying off the second mortage would bring down our monthly bills as well as getting rid of debt... but then we would be out of money..Any help would be very much appreciated! thank you so much!Edit:Monthly ExpensesApproximate budget:Life Insurance 275 Second Mortage 550 Con Ed 220 Food 300 Verizon Wireless 200 Common Chargesassociation 422 Cable 160 Geicocar and home insurance 277 Gas 300 Shopping and misc expenses: 200Assistant: The most important question, which you havent answered yet, is: whats the interest rate on the debt?And how old is your mom how close to penalty-free withdraw on the IRAs and 401k is she?Edit: Please consider reading I have X, what do I do with it? from this subs FAQWiki.Human: The interest rate on the second mortage is 3.25. My mom is turning 51 in August.  <response>: I would take half of the savings and pay the mortgage, leave the other half until your budget is no longer in the red. This is contingent on your budget not being in the red sooner rather than later. The real issue is spending 4,000 a month on two people. That is NOT a frugal lifestyle, no matter where you live. 