(DailyThrive.com) – Adulting can be hard, especially when it comes to money management. Making funds grow is the primary goal for everyone. But achieving that goal isn’t always easy, especially when you carry a heavy debt load. Should you pay off your debt, or invest and make your money grow?
Youtuber thewildwong settles the great debate in this video:
How to Decide What to Tackle First
- Know your interest rates. If you’re plagued with a large amount of debt and the interest rates are high, work on paying that off first. Making minimum payments on your low-interest student loans while doubling up on your high-interest credit cards is a good financial move to pay everything off faster.
- Do both. Invest small while still tackling your debt. If you have a 401k employer-backed program, take advantage of it. Especially if your employer matches your contribution. It’s like free money.
The goal is to have cash saved up for retirement, but not be burdened forever by debt. Chiseling away at debt a little at a time is the best bet. Start investing and saving money now. Making investing and saving work simultaneously is the best way to secure your future.
~Here’s to Your Success!
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