Cashed out my 401k and my wife and I have never been happier!!!

Greetings, GLP! Let me give you a little story because I think my situation is somewhat universal here on GLP and might be of use to some of you. My wife and I are lower/middle-class earners- she makes 16/hr as a CNA and I make 19/hr as a licensed level "D" wastewater treatment operator. Money has always been a struggle for us and we consistently have found ourselves in debt. Additionally, as of September 2022, I lost my job. I quickly found another for the same pay, but here is what I did. I cashed out my 401k (I had 63k after 11 years w/3% match=~42k after taxes and penalty)- set aside the money for taxes and here is how I spent it:

1.) Paid off our cars- 16k combined
2.) Paid off credit cards- 8k
3.) Paid off my wife's medical bills- 3.5k
4.) New furnace for our house- 5.5k
5.) Bought a few other needed things i.e. timing belt for car, new stove, new dryer etc...4.5k
6.) Put the rest in a wells fargo savings account-~4-5k

Never have we been more at peace. Prior to this we always struggled with money. We knew we needed some of these things but weren't sure as to how we could afford them. Plus the credit card bills were racking up. Now, some of you might wonder what we will do in retirement. Number one- we are hoping for SS, but even if it's not there, we only need ~1700 a month (combined) to live comfortably. We could essentially work part-time now and live just fine. Also by the time we retire 2047, our house will be paid off reducing our needed income to ~1200 a month- accounting for inflation as well!! So, long story short- some of you are in the same situation as us. I can tell you I dont care that many think we were stupid for doing this. That doesnt cause us to lose sleep- being in debt did, and now we have little to no financial worries. 100% worth it. And I could care less about the stupid stock market now. Something for you all to think about...