Should I Invest or Pay Off Debt First? Here's How to Decide

There are lots of things you know youshoulddo with your money.

But it can be hard to know what to focus on first.

Investing can help you build wealth and create a comfortable retirement.

On the other hand, debt can hinder your financial capabilities today and has a significant long-term cost.

As a general rule, it’s best to balanceinvestingandpaying off debt.

But sometimes, it makes sense to prioritize one over the other.

Which financial goal you should focus on first depends on your unique financial position.

Consider these things to determine your best strategy.

Here’s How I Did It

You should focus on investing if…

It could be wise to concentrate on investing in the following scenarios.

If you make $100,000, that means they’d add $3,000 to your retirement fund.

That’s essentially free money.

However, these general tips are worth keeping in mind.

Here are some times when paying off your debt should be your top priority.

You’ll be better served by working to get rid of your high-interest debt before you get going investing.

But that’s not all.

Paying off that debt could help you improve your credit score, setting the foundation for your financial stability.

Debt can be stressful.

That’s especially true when you consider today’s high cost of goods and housing.

Get out of debt quickly with these tips.

A financial professional can help you create the plan that’s best for you.