I'm 27. I financed a new car about a year ago that has $20000 left owing with a 2% interest rate. This is my only debt.
I have a $8500 emergency fund, $12000 in registered accounts, and $6600 sitting around in miscellaneous savings accounts under the names as "Travel", "Gifts/Christmas", and "Downpayment". Most of it's in downpayment. A fourth of it was in Travel but I can't justify travelling when I'm carrying debt so no matter what I end up choosing to do, I ain't going anywhere, don't worry.
I have new job where I make $4600/month and manage to faithfully save $2000-2500 every month. I hope to increase that significantly. I'm cutting cable tomorrow, getting a roommate soon, trying to curb lifestyle inflation, etc etc.
I've decided that I don't want to buy a house. It doesn't fit my lifestyle. I don't want to be tied down. I don't want the work that home-owning demands. I'm not going to have kids no matter how many times I get asked when I will. I don't care to be in one place for a long time. I want to travel and eventually live overseas for parts of the year. I want to keep my expenses as low as I can (working on it!) and savings high so I can reach FI by the time I'm 45-50 or earlier if at all possible.
I really want this car paid off. (I don't know if you can tell, but I recently re-read MMM's debt emergency post!) Instead of putting the $2500/month in savings, I want to throw it at the car debt and have it GONE in a few months, instead of making payments until 2018 as it's currently scheduled. Once the car is paid off I could sell it and get a cheaper car. Or maybe not. I really like this car. I will probably keep it. Feel free to face-punch me, I know it's coming.
So my question is, should I use that $6600 to wipe some of that car debt and/or attack the debt with my monthly savings instead of investing it? Then after it's done before the end of the year I can start putting not only the $2500/month but the monthly car payments into investments.
(Sidenote: I'm getting pitiful returns as my registered funds are only in mutual funds with ridiculous MERs (the cost of being Canadian, speaking of which, I wonder if there is a forum thread for Canadians?). I've been reading up on investing and I want to invest in low-cost ETFs and index mutual funds; however, I'm told I need to have at least $25000 to invest through TD Waterhouse, or else I'll get hit with a $100/year fee. So I may have to wait until next year to dip my toe into ETFs/index funds.)