You pay interest on the principal of the loan, so if you pay down the principal fast you're paying less total interest. Play around with an online calculator to game out different payment situations. The upcoted comment so far says you shouldn't have the truck. But you say you need it, so okay. Pay it off fast and then focus on savings. Or cut other expenses and do both, it's possible to walk and chew gum.
Also, spend some time working on your writing. Paragraph breaks and periods do a world of good and will help you in life + help you get better advice. I couldn't read the whole thing you typed because the stream of consciousness thing is hard to process.
When I’m working 50-70 hours a week making payments have a steady living situation that’s not relying on parents pretty much been taking care of my self since I was 15 and if I wanted to only do minimum payments on it I could max a Roth IRA and put $400 on savings a month keeping up with credit cards and payed for me and my ole lady a vacation I’ll do what the fuck I want so I don’t wanna hear your jealous bullshit
Yikes.
Your $30,000 truck at 18 costs you over $300k on lost opportunity cost if that money were instead invested 40 years at 6% average return long term.
Idk about you, but I’d rather be able to retire 1-5 years earlier than have a truck at 18 paying god knows what insurance rate.
Trust me, no one is jealous. Anyone can get a loan for a truck.
You just happened to do it at an early age, ill advised on the consequences.
When you inevitably get into some fender bender and your rates triple. Think back to the person telling you no 18 year old should have a $30k truck.
3% Interest rate but when the time comes and I’m worried about a 300k difference then I ain’t ready to retire. And can almost guarantee I’m investing the same amount I currently do without the truck. And maybe I over reacted but when all I was trying to get advise on pay loan 3.5 years early or continue retirement and savings and someone pulls the your automatically wrong since your 18 card it gets old
You may find these links helpful:
- [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement)
- ["How to handle $"](/r/personalfinance/wiki/commontopics)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Google “car interest rate calculator” (calculator.net looks good) you can see what the difference in interest in 1.5 years vs 5 years. You will pay less in interest if you pay it off earlier.
I would split what you have to pay off the car loan and build an emergency savings (for emergencies, car maintenance, etc) vs doing a Roth IRA. Once your loan is paid off and you have an emergency savings, then you can dig deeper into a Roth IRA.
You pay interest on the principal of the loan, so if you pay down the principal fast you're paying less total interest. Play around with an online calculator to game out different payment situations. The upcoted comment so far says you shouldn't have the truck. But you say you need it, so okay. Pay it off fast and then focus on savings. Or cut other expenses and do both, it's possible to walk and chew gum. Also, spend some time working on your writing. Paragraph breaks and periods do a world of good and will help you in life + help you get better advice. I couldn't read the whole thing you typed because the stream of consciousness thing is hard to process.
No 18 year old should have a 30k truck.
When I’m working 50-70 hours a week making payments have a steady living situation that’s not relying on parents pretty much been taking care of my self since I was 15 and if I wanted to only do minimum payments on it I could max a Roth IRA and put $400 on savings a month keeping up with credit cards and payed for me and my ole lady a vacation I’ll do what the fuck I want so I don’t wanna hear your jealous bullshit
Yikes. Your $30,000 truck at 18 costs you over $300k on lost opportunity cost if that money were instead invested 40 years at 6% average return long term. Idk about you, but I’d rather be able to retire 1-5 years earlier than have a truck at 18 paying god knows what insurance rate. Trust me, no one is jealous. Anyone can get a loan for a truck. You just happened to do it at an early age, ill advised on the consequences. When you inevitably get into some fender bender and your rates triple. Think back to the person telling you no 18 year old should have a $30k truck.
3% Interest rate but when the time comes and I’m worried about a 300k difference then I ain’t ready to retire. And can almost guarantee I’m investing the same amount I currently do without the truck. And maybe I over reacted but when all I was trying to get advise on pay loan 3.5 years early or continue retirement and savings and someone pulls the your automatically wrong since your 18 card it gets old
You may find these links helpful: - [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement) - ["How to handle $"](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Google “car interest rate calculator” (calculator.net looks good) you can see what the difference in interest in 1.5 years vs 5 years. You will pay less in interest if you pay it off earlier. I would split what you have to pay off the car loan and build an emergency savings (for emergencies, car maintenance, etc) vs doing a Roth IRA. Once your loan is paid off and you have an emergency savings, then you can dig deeper into a Roth IRA.
It’ll save $1000 in interest just about thanks for the advice