Assume I bought a car in 2018 and the loan would be for 5 years. As of now, assumed I'd paid close to 2 years of the loan payment.
To manage the monthly payment, the strategy is to open up a separate account, and keep a year's worth of monthly payment for the car e.g. monthly is $500 so that would be $6000. This amount is deposited in December, and will be auto-deduct monthly on the following year.
Suppose I lose my job early 2021, so I've 2 years left to settle the car loan (or $12, 000); assume I've 5 years worth of savings; should I:
- Settle the loan, which is $12, 000
- Continue what I do now, and keep the other $6000 in savings or investments (e.g. for dividend)
I'd like to do (2) since I'd like to see how I can manage my finance during trying times, or just train my EQ for this sort of scenarios. But if the folks of r/FinancialPlanning have a different view or even criticisms, I'm more than happy to hear them!
Thanks guys!
Submitted June 29, 2019 at 10:09PM by runnersgo https://ift.tt/320ERef
