My fellow Mustachians, I come before you today with a question. I’m just trying to figure out how to word it so it doesn’t sound like I’m asking for a pony ^_^
In 2010, I bought a small pickup truck, which was financed for 60 months. (I’m not interested in hearing why that was a bad, unMustachian thing to do – it was a different time, and I was a different woman then.)
My current situation is this – I have 28 more payments of roughly $500/month, which would put my payoff date as April 2015. I am currently saving $400/month in my TFSA, $300/month in my personal RSP, and 7.5% of my pay in my group RSP through work (with a 100% match by my employer).
My question is – does it make sense for me to keep on as I am now, saving while paying the loan? Or does it make sense to drop the savings in both my TFSA and RSP down to $100/month each (to keep the momentum going), and throw the extra $500/month at the truck loan? I estimate that if do the latter, I would have the truck paid off in March 2014. I would still have contribution room available in both the TFSA and RSP for the 15 months that I decreased my contributions.
I’m interested in your thoughts of which of the two choices would be better.