Having been in a similar situation to you and having gone the route of dumping all my extra cash into paying off my car loan super early….I wish I had put much of it elsewhere such as building cash reserves, into investment accounts, towards retirement, or savings for future large cash expenses (vacations/wedding/etc)
If you’re comfortable where your cash reserves are at, have you considered opening a brokerage account? You could split that $500ish your saving between the brokerage account and extra car loan payments since that seems important to you.
That way you’re putting money into an investment account that’s more liquid than a Retirement account but earning more interest that a traditional savings all while still paying off the car early.
Ultimately, there’s no wrong decision here so go with whichever strategy mentioned in any of the comments feels right to you.
LordOfThe7Kingdoms t1_j6geybt wrote
Reply to I want to pay off my car. Should I stop adding to savings? by julianorts
Paying debt off early is rarely a bad idea.
Having been in a similar situation to you and having gone the route of dumping all my extra cash into paying off my car loan super early….I wish I had put much of it elsewhere such as building cash reserves, into investment accounts, towards retirement, or savings for future large cash expenses (vacations/wedding/etc)
If you’re comfortable where your cash reserves are at, have you considered opening a brokerage account? You could split that $500ish your saving between the brokerage account and extra car loan payments since that seems important to you.
That way you’re putting money into an investment account that’s more liquid than a Retirement account but earning more interest that a traditional savings all while still paying off the car early.
Ultimately, there’s no wrong decision here so go with whichever strategy mentioned in any of the comments feels right to you.