My car will be paid off in 2 weeks

At some point there was going to be a crossover, where it made my emergency fund balance better if I took money out of it to pay my car off (since I drop 3 payments from its calculation). That point is coming up at my next paycheck. Between the payoff amount, my reserve balance, and my paycheck, I'll come out ahead by paying the car off at the first of the month. Basically, right now I'm $1150 below where I want to be in my emergency fund. To make the payoff and pay my additional monthly bills, I have to pull $1150 out of the fund. By making the payoff, I reduce the need in my emergency fund by about $1800.

The net result? I wind up about $500 down from where I want to be, an improvement from $1150 down before the payoff. With my usual car payment out of the way, my emergency fund will be at full strength by my next paycheck, and I'll have the title in hand. It's a win/win situation and I'm thrilled that I'll be seeing a significant bump in my true take-home pay so soon.

I'm glad I waited the extra month to do this, as this is really the time it finally makes sense. After this payoff my only debt will be my mortgage! What a good feeling. As I've discussed, I consider this car purchase to have been a financial mistake . . . one that I plan to not repeat if possible. Will I have a car loan again? That depends on the terms and interest rates at the time. I don't plan to have one anytime soon though, and that's a nice feeling.