Hey everyone, current E4 that just got a check of 20,000 dollars and I’m wondering the best way to spend it.
I currently save 1.2k a month
HYSA $8,500
Checking $1k
Savings $1k
Auto loan $20,000 Ford F150 @5% interest 419 payment
No credit card debt
I was thinking fund my HYSA to 15,000 and use the rest to pay down a large chunk on my truck and then use my 1.2k each month to continue paying my truck until it’s paid off. Thoughts ?
Got a check for 20,000
byu/Potential-Ad-4073 inMilitaryFinance
Posted by Potential-Ad-4073
4 Comments
Consider refinancing car loan to get a lower rate and or payment.
Or pay off the whole thing but keep paying the car bill to an investment account.
Keep paid off car for as a long as possible.
You’re only getting ~4% in HYSA.
Max out IRA for the year and put the rest to the truck imo.
Sounds like you’re asking a psychology question and not a math question.
The math says, pay off the truck and put that $420/month into an investment.
Your emergency fund probably has plenty to cover emergency expenses for a couple months. I would put most of it towards the truck, then make sure you’re putting money into an IRA and your TSP, if you have leftovers then your HYSA or an individual brokerage account.