money tip #3
TRANSCRIPT
Money Tip #3
Pay off debt or invest first?
3. Should I pay off all my debts first before I start
investing? – This is one place where I diverge from Dave Ramsey’s teachings. I personally think that you should start investing in a Roth IRA as soon as you can regardless if you have debt or not. Waiting will only delay the power of compounding interest. Paying off debt is very important and should be at the top over everyone’s personal finance to do list, but I personally have a hard time stopping investing completely to throw all available income at debt reduction. I like to continue investing even if it is just a little bit while paying off debts.
Compound Interest, How does it work?
- Assuming you put $100/month in one year equals $1,200.
- Assuming 15% Accumulated
- $100/month is like buying 20 cups of coffee at Starbucks/month.
- or going to the movie theater 8 times/month.
Do you think you can save $100/month for $67,000 after 15 years?
Interesting thought!
- Why do we use a GPS to find our needed destination though we don’t use one for our financial goals.
- I am able to give you a complimentary MoneyMap if you contact me directly at [email protected]
Feel free to contact me.