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!
- 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!
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