Originally Posted by Poink88
This is hypothetical.
Your credit cards are all paid off, have a car & mortgage loan. If you have extra $1,000 (monthly, after you bought your "toys"), how would you use it?
EDIT IN: Assume interest for both car loan and home mortgage is 5%. Also lump savings and ROTH/IRA with investment for simplicity.
"After toys" bothers me. As long as you have debt toys are off limits. Avoid the toys and pay all extra money on that car. Paying interest on a car is bad, it's like anti-investing. You're paying in extra money and in return you're getting screwed, only not by a hooker.
You buy a new car and agree to pay 32k for it, but you have to finance it at 5% for 7 years. That's what....$450/month? That equals 37.8K you pay for a 32K car that at the end of 7 years will be worth maybe $12k so you just threw away over 25k.