46 – Investing vs. paying off debt

Should I invest, or should I pay off my debt first? Good question! And I love exploring this topic with my clients and finding a fitting solution.

I may not know your personal circumstances to sensibly advise you, but I do know that the first step to building wealth and being financially free is to truly understand your HABITS. I always say that wealth is 90% behaviour and only 10% investment knowledge. So, there are some things to consider when it comes to deciding to invest your money, or to pay off your debt, or to find a happy medium!

Show notes

  • The most important consideration is your own behaviour – have an honest conversation with yourself
  • Understanding your short-and long-term debt and their linked interest rates
  • The mindful habit of investing and thinking of your future – even it is small amounts
  • The golden rule of wealth is to NEVER use capital to fund expenses
  • Better to pay off short-term debt first – credit cards, personal loans, clothing accounts, etc.
  • Long-term debt goals – you should pay at least one month’s extra payment a year
  • The practice of “taking the money off the table”
  • Small regular investments beat lump sum investments any day!

Related articles

If you enjoyed this podcast, we suggest listening to How to start investing and Four things you need to know about your house.

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