So I bought a car a year ago on a 6 year term with an interest rate of 4% and still owe $23k on it. I have 24k in savings, 20k of which I had originally planned to set aside as my official emergency fund. My question is would it be smarter for me to simply pay off the entire car and start my savings from scratch?
My plan was originally to set the 20k emergency fund aside and begin saving towards a down payment for a house which I would start looking for a year or two down the road. Paying off the car would set all that back to zero but I'd have no debt. I have no student loans or credit card debt.
I make 50k a year and was also planning to start contributing to my employer 401k. My biggest gripe is that I'm in my early 30s and feel like I'm so far behind in savings. I graduated college late and started my career at such a late age also. Any input from you guys would be grateful.
Submitted March 01, 2020 at 07:52PM by cesarmac https://ift.tt/2VzWXDd
