Keep Saving Your Car Payment After You Pay It Off

Keep Saving Your Car Payment After You Pay It Off

When you pay off your car, it feels wonderful. However, if you want to keep saving money, set aside the amount you were already paying into a savings account.

As finance blog Wise Bread points out, you've already conditioned yourself to spend that money regularly for years. Unless you have a critical need for those extra funds immediately, simply diverting it to a savings or investment account will help you prepare for the future with virtually no changes to your financial routine.

3 Ways to Save Hundreds (or Even Thousands) of Dollars Without Thinking [Wise Bread]


Comments

    Paying off those debts is super hard but really gratifying when you finally do get it done. I think in high school people should be taught how to manage money and learn to save more efficiently so when they do become young adults they have an easier time.

    Or, like my Wife and I did, we put that money into our mortgage, we also did that with the money that was paying off the credit card, we concentrated on getting rid of the highest interest debts (so credit card then car loan) so that's an extra $150 to $200 a week going into our Home loan, we are 3 years into our Mortgage and we have nearly a quarter of it paid off. I would like to have the Mortgage paid out and gone in 10 years.

      Good for you guys. It's amazing how many people don't understand the ramifications of compound interest, and how even small increases above repayments make a dent in the duration of the loan, particularly at the beginning (when most of the repayment covers the interest, rather than the principal).

      If it takes 25 years to pay off the loan, you borrowed too much.

    Ew, car payments. I would never buy a car that I couldn't pay cash for. Debt is for appreciating assets only.

    Couldn't agree more, I've recently paid off my car 2 years in advance, my repayments where $224 a fortnight but upped it to $550 - now this money automatically gets directed into my saving's account for a bigger goal - home ownership - Yes $550 is nothing compaired to a mortgage that is $1,500 a fortnight/ month etc but it's a start.

Join the discussion!