Alas, had I read this blog a mere 7 months ago (or even better, over a year ago), I would not likely find myself in this position.
In April of 2014 I bought a $200,000 house with a 7% down payment on a 30 year mortgage (and a 40 mile commute to work). 7 months ago I sold my used 2004 Nissan Maxima for a brand-spanking new 2015 Subaru Forester.
Now, I gather from MMM's first couple of posts that I should start paying off the car loan, but I'm wondering if these are extenuating circumstances: 1) that I have a 40 mile commute and will probably want to move closer to the work in my state, and 2) that my home's interest rate is higher than my car's.
I'm a brand new mustachian having just started reading a few weeks ago. I was saving 15-20% of my income before-hand (though technically not when you realize that I used said savings for down-payments rather than investments). With a few common-sense adjustments, I should now be saving 28%, and when I quit smoking I'll be at 35%. At my salary I could pay my car off in just over a year, build up 10% more equity in my house over the same time.
Edit: I should note that my mortgage has a monthly PMI payment that's about half of my current car payment.
Thoughts? Opinions? Rotten tomatoes?