When you finally payoff that loan it is a huge accomplishment, don’t change your budget and continue to make the payments to yourself.

We purchased our first car back in October 2003 with a 5 year (60 month) loan at 0% APR. This was a great deal and looking forward to paying the loan off in the next few months. We also decided to enter into a 2-year lease for our second car due to our work commutes. Just recently, we made our final lease payment and decided to turn the car in, going from a 2-car to a single car household.

Since we no longer need a second car, we have decided to continue to save our monthly payments into a new account to be used as a down payment for the next car …