I’m often torn between the idea of paying off a little more debt or doing something else with the money.

For instance, I just sent my lender an extra car payment so that I could pay down the principle a bit faster. Paying an extra payment now is equivalent to reducing my number of payments by 1.3 payments. It would be really nice to pay off all these car and student loans so that I feel like I have more options and more freedom.

A month ago, I socked away a grand in a CD that earns 5% a year, since it seemed like an amazing interest rate. However, if you compare this rate with that of the car loan, I’d earn a better “return” by using the money toward the car loan.

Then there’s the idea of saving money for a disaster. If I lose my job, how many months could we last without that paycheck? Not many.

Better start saving more.

NaBloPoMo 23