Should I pay off debt or keep my emergency fund first?

Do a bit of both, in sequence. Start by setting aside a starter emergency fund – many people target around $1,000 – so a surprise expense doesn't force you back onto high-interest cards mid-payoff. Then aggressively attack high-rate debt, because paying off a 24% card is a guaranteed return no savings account can match. Once the expensive debt is gone, build your full emergency fund to 3–6 months of expenses. The logic: a tiny buffer prevents new debt, but parking a large cash reserve at 4% while paying 24% interest loses money every month. The exception is unstable income or a shaky job – in that case a larger cushion buys security worth the interest cost. Balance the two based on your risk and rates. Size your target reserve at wealthserene.com/tools/emergency-fund.