To pay off or to save??? that is the question
I am wondering if I should knock out my car note early or save and build on my additional savings? Although I have roughly 18months on my car loan, I would like to pay it off by the end of the year so that I can buy my first 2nd investment property. I am wondering if I should make the additional payments or add that to my investment savings. Any thughts/suggestions greatly appreciated.
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@nalo
Personally, I would make the decision based on the interest of my car loan, and what i could possibly make in saving that amount. I personally have a car note with 1.49% interest it really doesn't make much sense for me to bay it off. when im currently making about 10% investing my money. However if the monthly payment is a significant amount of cash flow. I would probably pay it off sooner and place that money into my investments to produce greater savings. I would also look at what the potential cash return will be on a standard second investment. If it potentially cashflows and would cover my car payment. I would stretch the car payment and save to purchase the home that could cover the rest of my payments.
I hope that helps
Jonathan