Friday, 7 May 2010
I’m so close I can taste it. Today is payday so I sent a chunk of money to the car loan. God willing, I should make the last payment in two weeks. Though I haven’t been as good as I could be (still don’t bring my lunch to work), I’ve done a pretty good job of eliminating frivolous spending.
As soon as the loan is paid, I will restart automatic transfers to my IRA. In addition, I’ll set up an auto transfer to a ‘car fund’. My car is only six years old and has low miles so I’m not planning to buy another one for at least four years. However, it would be nice to pay for the next car with cash. The only problem is that I hate letting savings (other than our emergency fund) accumulate. I always think the money would be better used to accelerate our mortgage payments. One of my goals/criteria for early retirement is to have the house paid off. It’s much easier to retire when your expenses are low. How do you balance savings vs debt repayment?