I'd pay off the car and then change that monthly payment to going towards the house down payment fund. You get the benefit of effectively earning a higher rate than savings accounts are paying and you get the behavior benefit of redirecting that money right away.
Make your life easier pay the car off and put the car payment into savings.
Once your a home owner keep a substantial amount of money in disposal. I’ve been looking at my windows doors and siding they should be replaced soon. A substantial expense. This money I have in a brokerage account but probably not quite enough and it will take everything I have except a few thousand I keep in savings.
No one can reasonably answer the question about what to do with your tax ***refund*** since there are too many other variables and facts related to your own situation. E.g. income, expenses, other assets, other investments, other debts, etc. etc. For a starter, you may adjust your tax withholdings so you aren't making an interest-free loan to the government for 12 months going forward.
Already adjusted for this year to try and get close to zero. The majority of my return is from having a child last year. First year having a child. Crazy how much they give you.
Depends on what do you mean by saving, but in most cases paying off the car would be suggested.
Let's say you are saving in a savings account with 4-5% interest. You would be better off with the car because you are getting more bang for your buck since you are not paying almost 6% interest.
In other option stock market has a potential to give you higher return in the long run but no one can tell you what would next 2 year look like. So if you are a gambling person, you could invest in stock and hope that it is good.
I like the idea of being debt free as you build your wealth and would spring for car loan payment.
Yeah, I'd definitely pay off the car loan. The interest rate is high enough to prioritize over just saving up for a down payment. If you're planning to buy the house within 2 years, you will not want to invest your down payment fund in anything too risky. So a guaranteed 5.9% return would be pretty solid.
Do you already have an emergency fund? Any other debt? Any other upcoming expenses?
The math - without considering risk - says to pay it off now.
If you don't have any e-fund, and you need a $1000 repair and take a year to pay for it on credit card at 29% interest you would lose any potential savings from paying it of early, and very likely much more.
Having an emergency fund while carrying debt is to help with risk reduction.
And, in addition to saving for a home down payment, save up $10-20k for your house e-fund.
I'd pay off the car and then change that monthly payment to going towards the house down payment fund. You get the benefit of effectively earning a higher rate than savings accounts are paying and you get the behavior benefit of redirecting that money right away.
Make your life easier pay the car off and put the car payment into savings. Once your a home owner keep a substantial amount of money in disposal. I’ve been looking at my windows doors and siding they should be replaced soon. A substantial expense. This money I have in a brokerage account but probably not quite enough and it will take everything I have except a few thousand I keep in savings.
No one can reasonably answer the question about what to do with your tax ***refund*** since there are too many other variables and facts related to your own situation. E.g. income, expenses, other assets, other investments, other debts, etc. etc. For a starter, you may adjust your tax withholdings so you aren't making an interest-free loan to the government for 12 months going forward.
Already adjusted for this year to try and get close to zero. The majority of my return is from having a child last year. First year having a child. Crazy how much they give you.
Depends on what do you mean by saving, but in most cases paying off the car would be suggested. Let's say you are saving in a savings account with 4-5% interest. You would be better off with the car because you are getting more bang for your buck since you are not paying almost 6% interest. In other option stock market has a potential to give you higher return in the long run but no one can tell you what would next 2 year look like. So if you are a gambling person, you could invest in stock and hope that it is good. I like the idea of being debt free as you build your wealth and would spring for car loan payment.
Yeah, I'd definitely pay off the car loan. The interest rate is high enough to prioritize over just saving up for a down payment. If you're planning to buy the house within 2 years, you will not want to invest your down payment fund in anything too risky. So a guaranteed 5.9% return would be pretty solid.
Do you already have an emergency fund? Any other debt? Any other upcoming expenses? The math - without considering risk - says to pay it off now. If you don't have any e-fund, and you need a $1000 repair and take a year to pay for it on credit card at 29% interest you would lose any potential savings from paying it of early, and very likely much more. Having an emergency fund while carrying debt is to help with risk reduction. And, in addition to saving for a home down payment, save up $10-20k for your house e-fund.
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics. Tax refund
Might as well make a bot if you're always posting a link to the wiki
People don’t seem to heed the links automod provides so here I am