Today is payday! I paid my bills and had one thousand dollars to "save". So, rather mindlessly I just transferred that money into my savings account. Great! But it seemed kind of mindless, and easy, and safe. But..as I mentioned before I am not a risk taker at all with my money. So it makes sense that I would just plop it into savings.
My two main financial goals are to pay off my house in 5-6 years and to save for retirement. I want to do both of these things in the safest way possible, so I am trying to figure out the best way to maximize my money without risking it. Because I haven't quite figured it out yet, I am not ready to leap into something.
I am considering: Paying extra each month on my mortgage. I have a really low interest rate (4.25%).So is it best to put extra money on the payment each month, or just continue to save the money and when I have enough saved just pay the mortgage off in one lump sum? or, do some of both? I just like the sense of security I get knowing I have that money in the bank should I need it.
Decisions, Decisions!
Well, I am rambling...if you read all this thanks for sticking with it and have a great weekend!
Moving from "mindless" to "mindful"
January 7th, 2011 at 03:31 pm
January 7th, 2011 at 03:52 pm 1294415540
January 7th, 2011 at 04:40 pm 1294418416
I suggest you pick a date whereby you want to have it paid in full. Then, use a payment calculator to see what you need to pay each month to make it happen. Pay that amount and save the rest.
January 7th, 2011 at 04:43 pm 1294418581
Why wait til you have a lump sum? Becus in the interim, something else will invariably come up and give you a reason not to pay down that mortgage.
If you already have adequate savings and if that mortgage is the only debt you have, by all means, prepay it!!
January 7th, 2011 at 04:45 pm 1294418726
January 7th, 2011 at 05:08 pm 1294420139
January 7th, 2011 at 05:29 pm 1294421382
My mantra is "slow and steady wins the race" and I've come to the conclusion that each small bit of money that I can throw some place (onto the mortgage, into the kids' savings account, increase retirement savings contributions by 1%) will eventually better us in the long run, rather than frittering small amounts away. I'd say throw what you can where you want, rather than waiting for a lump sum.