Quote:
Originally Posted by creekster
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.
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I am all with you on this. I just think that a 6 month time horizon is not worth the piece of mind that you would get.
I envy you that you have had the luxury to wish that you had more savings younger. Shortly after I had started saving and investing for the long term a substantial portion was wiped out by the internet/tachnology bubble. And I did not even get the joy of daytrading or even owning internet stocks, but the mutual funds I owned got hammered. So, paradoxically I am one of the rare people who can say, "i wish I had not invested so much when I was young." It was a hard way to learn a valuable lesson.