Prioritizing

I have been thinking about something lately a lot, but haven't figured out the answer. My question is: Where do you drawn the fine line between maximizing your 401(k)s, IRAs, etc versus paying more down on your mortgage versus maintaining an efund large enough to pay for 8 months of expenses. Which one is the most important to you?

So how do you prioritize the following below and why? How do you decide where to put the most money?

Do you maximize your 401(k) to take advantage of free money (through matching contributions) and take advantage of the effect and power of compounding? Do you maximize your IRAs?

Do you make extra monthly mortgage payments in order to to reduce the amount that you pay in interest over the life of the mortgage loan and to pay off your loan faster?

Do you build your efund (8 months worth) to cover unexpected events like layoffs, car repairs, medical emergencies, house repairs, etc.?


I don't know if there is a right or wrong answer so any input would help.