yes, I could repay it and there would be no penalties and save on interest. I'm slow though to spend the emergency fund as it took so long to build up. 15k is roughly 6 months expensesCan you pay the car loan off early without incurring fees or paying the interest? If so, it would make sense to pay that off before investing. It would be a guaranteed 5% return on investment.
You'll rebuild it quickly when you're not paying 500 per month on a car loan!I'm slow though to spend the emergency fund as it took so long to build up.
ya I get what you are saying 100% and logically it makes sense. its just that it's hard to differentiate the kids child benefit which I put away and I see it as theirs so to speak and was hoping to out it into an etf so it could be useful when they get to college.You’ve really got an emergency fund of €21k if you include the “kids savings”.
As two public sector workers, you don’t really need a large emergency fund.
In your shoes, I would pay off the car loans and gradually build up your cash reserves again.
Otherwise, it looks like you are making all the right moves.
very true. I guess it's an emotional attachment to the money!You'll rebuild it quickly when you're not paying 500 per month on a car loan!
ya, I'm inclined to agree. Will prob save approx 1500 in interest over the course of the loan.With no loans, you’ll be able to save even more every month and build you reserve up again.
Remember, credit cards are a form of emergency fund also.
I would clear the loans, 5% on €15k is hefty enough vs almost zero for deposits.
very good way of putting itPut it this way. If you had 6k in your savings account and no loans. Would you take a 15k loan at 5% just to put it in the savings account? You likely wouldn't and would think someone was mad to even suggest it but this is essentially what you are doing.
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