<prompt> Human: Went to school at a top engineering college, left with 22k in loans with an average interest rate of 3.4 - not too bad. I live in San Diego which isnt one of the cheaper places to live. Rent is 1100, no utilities,.. after all expenses I have the option to either live very frugally and find a cheaper place or keep going as is paying about 250 a month in loans, and another 400 going to my emergency fund till it hits 5k. At this stage am I wrong to assume that paying off my student loans at a faster rate approx 3-5 year paying 500 a month makes more sense than dumping 150 a month into my 401k? My company does not match any percentage but offers profit sharing for me in 6 monthsAt my career path I should have a raise soon and be to 7580k within the next 2 years.  <response>: At that low of an interest rate I would max 401k and then pay down debt more when you get raises.Edit: Remember the power of compound interest. When you are retired at 50 youll thank me. 