Are you stuck between whether you should be paying off your debt or investing in your future? This is one of my frequently asked questions. Well, here's some great news - you don't have to choose between the two! You can and should pay off your debt and invest at the same time.
Time is your most valuable asset when it comes to investing. The longer you wait, the more you miss out on the benefits of compound interest. By prioritizing your debt over your future, you are sacrificing time that you can never get back.
But don't get me wrong, paying off debt is essential. However, I don't think your debts deserve all your attention for years and years. Take a moment and ask yourself why you want to become debt-free. It's usually an emotional response, and it's essential to separate emotions from money decisions.
Successful investors know that you have to look at the numbers and see what makes sense. By investing while paying off debt, you can achieve financial freedom faster. So, if you're wondering if you should pay off debt or invest, the answer is both!
However, I would prioritize paying down high interest debt over investing. That does not mean you can't do both. I would still continue to invest while placing the majority on the high-interest debt. For example, if you have $300 extra to allocate that month, maybe place $200 extra towards the high-interest debt(s) and $100 extra into investments.
Don't wait until you're debt-free to start investing. You can and should pay off debt and invest at the same time. Remember, time is your most valuable asset, so start investing today!
Creator, The Budget Book