What to do with an $2K/month

#1

With 1 car paid off and daycare coming to an end, we are going to have an extra $2K to play with. Currently we (my husband an I) are investing the match in our 401K (6% and 4%) and have ~$70k between us, we are 34 years old.
Current debt - about $72k in student loans (6.4% interest rate) and $19k car loan (3.4%) interest rate.

I feel panicked that we need to be investing more, but also would love to be debt free. Thoughts? I’m leaning toward maybe investing $1k, and then putting the other half towards my car first?

Thank you!

#2

Hey Kelley, I believe these posts will give you all the information you seek!

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#3

Thank you so much! I’m just nervous I’m very behind on retirement, but I guess I need to just pay off debt quicker :slight_smile:

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#4

For sure, but it’s never too late to get started! Jeremy recommends paying off all debt, but there are others like JL Collins (and many more) who says if the debt is below 3% you can choose to invest instead, and if it’s 3-4% it’s up to you (all personal preference). 6.4% would definitely be considered high though and you’re not guaranteed to get that much in returns if you choose to invest instead so probably best to pay off that high interest debt since it’s a “guaranteed” 6.4% return on your money if you aggressively pay that off.

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