Okay guys, I’ve got a dilemma. I set some financial goals at the beginning of 2017, but I like to travel and don’t want to be a hermit, so I haven’t been saving enough. Now I’m halfway through the year and not on the mark to meet all of them.
I have an auto loan with $10k left that I was hoping to get paid off by the end of the year. I also started putting money (currently $4k) in Vanguard Index funds and was hoping to have at least $10k by the end of the year.
These goals are probably not compatible. I’m still going to max my 401k contribution, and it’s not the end of the world either way, just trying to decide the best use of the resources I have left. The car is my only debt, and I’d rather not sell it. While it would be nice to go into 2018 totally debt free, I need to start investing more outside my pension and 401k.
The interest on the loan is pretty low, but it will take longer to pay off $10k than save $6k. I guess I’m trying to weigh the benefits of getting out of debt sooner vs. investing sooner. Any thoughts?