Quote:
Originally Posted by lilac_jive
You've just described the snowball method. I have to say though I think its a good thing to save some emergency cash while paying off cards, just in case. Then once those are done worry about the 401k (and max it out!)
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Well, you still have the credit cards if there is an emergency right. Seems silly to me to be saving while you are paying 12% or more on a CC.
Quote:
Originally Posted by lilac_jive
I don't want to pay my mortgage off early since I probably will only stay there for a couple years. My rate will be around 5%, so my money is better of in the stock market long term where I can earn 8-12%
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Ah... but I can guarantee you that for every $ extra of principal you pay off you will get 5% (if that is your rate). How much did you make in the stock market in 2008? Many LOST money. In 2008 I made 6.7ish% on the about 8k-10k extra I paid on my mortgage. And, because the balance is lower each month I can't put extra payment for some reason, since the principal is lower more of the payment is applied to the principal... more snowball effect.
BOb