TexasEscapes.com HOME Welcome to Texas Escapes
A magazine written by Texas
Custom Search
New   |   Texas Towns   |   Ghost Towns   |   Counties   |   Trips   |   Features   |   Columns   |   Architecture   |   Images   |   Archives   |   Site Map

Columns

Columns | Go Far With Kovar

Dividing Up Your Salary: Saving and Investing Enough?

by Taylor Kovar
Hi Taylor - My husband and I are trying to figure out the smartest way to allocate our income. We're both mid-20s, earn good salaries and have about $30,000 in savings. Right now we have about $2,500 a month to split between savings, our brokerage account, and our car payment. We owe $25K on the car and with a rate of 2.74% and a $600 monthly payment. How would you divvy this money up? - Tessa

Hi Tessa
- Glad to hear you guys are making good money and figuring out what to do with it. From what you've explained, you have a lot of liquidity and steady cash flow, which is good to hear.

$25,000 is a pretty sizeable car debt, so you want to get that off the books as fast as you can. If you aren't overly attached to the vehicle, you might want to consider trading it in for something cheaper. I always advise people to avoid borrowing for anything that isn't an asset, and while your car might retain a certain amount of value, it's worth is always declining and it isn't something you're expecting will bring in revenue. If this is the vehicle of your dreams and you can't live without it, carry on. Whenever you next buy a car, try to get something you can buy with cash.

If you don't have more debt in the form of credit cards or student loans, I'd start trying to pay off that car with as much force as you can. If you're just putting money into a savings account, you probably aren't making that much interest, so that money will serve you better if it eliminates debt. Keep putting money toward retirement and investing, but the sooner you have that car paid off, the more work you'll actually be able to do.

Try paying $1,500-2,000 each month on the car, and putting everything else into your investment accounts. This will speed up the payment process, cost you less in interest and allow you to save more in the long run. The goal is to have a lot of money to live off when it comes time to retire, so the longer you take to pay off that car, the less money you'll have when your working days are done.

It sounds like you're earning good money and have your sights set on the future. Get whatever debt is holding you back out of the way and then get to work building your retirement and investment accounts. Keep at it!
Taylor Kovar February 5, 2020
More "Go Far With Kovar"
Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.

"Go Far With Kovar"

  • Buying a House: What You Need to Know 1-29-20
  • Financial Impact of Middle East Tensions 1-24-20
  • Is a Home Equity Loan a Good Idea? 1-17-20
  • Saving for College: Should I Use a 529 Plan? 1-8-20
  • Saving for a Down Payment: Where Should I Keep My Money? 1-1-20

    more »

  • More "Go Far With Kovar" ›

    More Columns

     

     

     

     

     

     

     

     

     

     

     

     

     


    Texas Escapes Online Magazine »   Archive Issues » Home »
    TEXAS TOWNS & COUNTIES TEXAS LANDMARKS & IMAGES TEXAS HISTORY & CULTURE TEXAS OUTDOORS MORE
    Texas Counties
    Texas Towns A-Z
    Texas Ghost Towns

    TEXAS REGIONS:
    Central Texas North
    Central Texas South
    Texas Gulf Coast
    Texas Panhandle
    Texas Hill Country
    East Texas
    South Texas
    West Texas

    Courthouses
    Jails
    Churches
    Schoolhouses
    Bridges
    Theaters
    Depots
    Rooms with a Past
    Monuments
    Statues

    Gas Stations
    Post Offices
    Museums
    Water Towers
    Grain Elevators
    Cotton Gins
    Lodges
    Stores
    Banks

    Vintage Photos
    Historic Trees
    Cemeteries
    Old Neon
    Ghost Signs
    Signs
    Murals
    Gargoyles
    Pitted Dates
    Cornerstones
    Then & Now

    Columns: History/Opinion
    Texas History
    Small Town Sagas
    Black History
    WWII
    Texas Centennial
    Ghosts
    People
    Animals
    Food
    Music
    Art

    Books
    Cotton
    Texas Railroads

    Texas Trips
    Texas Drives
    Texas State Parks
    Texas Rivers
    Texas Lakes
    Texas Forts
    Texas Trails
    Texas Maps
    USA
    MEXICO
    HOTELS

    Site Map
    About Us
    Privacy Statement
    Disclaimer
    Contributors
    Staff
    Contact Us

     
    Website Content Copyright Texas Escapes LLC. All Rights Reserved