I have about 7k in cash just sitting and I’d like for it to grow. I know S&P500 is good for long term investments and I’m not sure if I should invest my money or not. My coworker told me he’d rather use the money I have towards paying off my car loan(72 months, 20k at 10.14%) vs putting it into stocks. He said S&P500 has an annual return of about 8% so I’d technically save 2% if I put it towards the loan.
Can I invest it for like a year and let it grow then use some of that towards the car loan? Would you prefer to let it sit for years on end or use it towards the loan at some point whether it be now or a year or 2 down the line? I’d keep a grand or 2 just in case I ever need it for emergencies but I’m not sure what to do so I came to you guys to ask.