We are financially comfortable. Savings of six months done. We have a monthly budget and don’t have any issues day to day. I’m in Europe. There will be some ongoing money freeing up in the next month or two and we’re trying to decide how to use it. My husband wants a lump sum saving scheme with risk, I’m very risk averse when we still have large debt outstanding. There is only one of us insured on the mortgage, the lower earner.
Debt: Mortgage 201k outstanding 3.2% interest 27 years remaining (slightly overpaying by €70 a month) Home Loan 21000 6 years and 6.8% Car loan 3 years 10000 interest 1.5% No credit card debt
Saving 300 a month for college for the kids. This is earning almost no interest
I feel we should be putting the 300 and any excess we free up a month into the mortgage. Pay down the debt then recalculate when they reach college freeing up an ongoing amount of money a month (this is allowed under our terms and conditions of our mortgage).
My husband thinks we should just keep the 300 savings for college for the next 15 years so that we have a liquid lump sum. He is happy to put any excess (1-200 into the mortgage when it arises)
Which of us is correct? Or is there other advice?