Dear friends,
After reading through practically all the MMM-blogs (which are phenomenal and inspiring!), some doubt lingers on paying of a debt vs investing.
After slimming down an already reaonably frugal spending pattern and with no outstanding debts apart from a student loan, I end up with about 600 bucks/month at my disposal for:
1. further attacking the principal on my student loan (currently remaining at 20K @ 2.45% interest, fixed for 5 year periods, next period 2015-2019 expected at 2.00%)
2. starting to invest in index stock, potentially delivering a larger profit than the loss on the loan
3. saving up for a down payment on a house
Or of course a combination of all of the above.
My basic attitude (debts are bad, m'kay?) would suggest going after the student loan first, but I would hate to make an irrational mistake should that not be the most optimal strategy in this case.
EDIT: In the Netherlands (where I live), most employees contribute to a pension plan through their employer pre-tax. Pensionplan money deducted from the Gross, so doesn't even touch my bank account, no temptations there! Also no 401K type of deals therefore.
I would very much value your thoughts! Wishing everybody here happiness and health in their (financial) life, Best,
Mercury