I know financial advice is like assholes but here's my take now that the car is settled. I find no point in saving a lot while there's any debt. Interest on debt is significantly higher than anything you're going to get on a savings account. less debt = mo' money. I've got a cushion in my checking account to cover any emergency that might come up and am using my savings as a place to stash until it's built up enough to pay something off. Started with the biggest (car loan) and am now working on knocking out student loans. Just don't feel having a lot saved while being in debt buys you much, it's essentially something to pay your debts with should something happen.
Like I said everyone's got their ideas and I'm sure you already have yours
Thanks. Sounds basically like what I already know and am doing, keeping loans to a minimum, hopefully nothing at all soon enough.
So your recommendation is pay towards principle on the truck loan or just saying that I can't save much at all with it in general due to interest? My payment is decently low, however I do want to refinance it for a lower rate since interest rates are much lower. I could have $30 or so a month.
I'm saying pay as much as you can towards your truck to get that knocked out then you can save what you are plus your truck payment. I think everyone needs some savings to cover something that breaks around the house, on the truck, or another emergency, just not a big rainy day fund while there is any debt. I've got my emergency cushion but aside from that I'm not saving a dime until my student loans are paid off. Hard now but figure it'll be worthwhile in the long run. Running numbers suggests I'll be 100% debt free in just under 9 months which is a good feeling to me.
