Quote:
Originally Posted by Detroitdad
Pay the damn thing off. You are already used to having to scrimp what is another six months. Then you can party some, save some into that mutual fund. Six months worth of mutual fund head start is not going to seriously disadvantage you in terms of compund interest. Besides having a debt paid off is worth a little in terms of piece of mind.
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Here's my thinking: It's like playing a little game with yourself. As Steel says, at 5% you're not getting hurt badly on the interest, so you really aren't going to be far ahead by paying it off or by not paying it off or by spliiting with a fund. But most people aren't that disciplined to save, so if you are already able to do $500 a montrh, then just keep doing it but put siome in the Mutual fuind. THen when the car is paid off, you can treat yourself with the extra money in your budget but keep saving. Either way, saving should be the focus. Let me tell you that if I could go back and do anything over zgain financially, it would be to save just a little more than I did. Not a lot, just some, but to do it earlier and regularly. Savings is power as you reach middle age. You may not believe me now, but when you get there you will know exactly what I mean.