I have a $365/month car loan which I'll pay off in February 2012. I can't wait for that, as this will ease my cash flow every month and free up money I can use on myself, or stocks, or silver, etc.
I was given this tip: after the car loan has been paid off, to continue to make the $365 monthly payment... to a new savings account. Two benefits:
1. I'll continue to live within my means, frugally, rather than "splurging" unwisely given I'll have more money every month
2. If I do this for 3 years, that'd give me $13,140; if for 4, $17,520... which I could use to buy a second car later on.
This sounds like a nice idea, but I drive a 3.5-year old Japanese make with excellent MPG and I have less than 26k miles on it after 3.5 years. I don't use it to get to work and drive mostly locally on weeknights or weekends.
Wouldn't it be better for me to take that freed-up $365/month and use it on silver, for example? Or even to throw it into my Roth IRA? After the car loan is paid off, my car will last me a long time and I don't expect any car maintenance headaches.
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