Choose only one choice: Pay off a debt or invest | by Destiny S. Harris | May 2022


Is multitasking smart when it comes to your money?

Photo credit: Los Muertos Crew

Some people recommend paying off your debt before engaging in aggressive investing and saving practices.

But here’s the problem: you can not recover time. And TIME is the greatest gift for savers and investors because of the magic word: compound interest.

Paying off your debts can take years, which means you lose years of compound interest. The more time you allow yourself to invest, the greater your rewards. why not invest now and eradicate the debt? You can do both. I did it.

Dave Ramsey recommends creating an emergency fund of $500 to $1,000, but that’s not enough for most people with heart disease. medium monthly expense charges.

It’s financially sounder and safer to build a fully stacked emergency fund for 12 months.

You might hear the recommendation to pay off your debts before setting up an emergency fund, but if you don’t have a big enough emergency fund, you might be digging yourself into a giant debt hole because you don’t have cash on hand to pay for unforeseen expenses. If you don’t have the money to pay for something, what are you going to use? Most likely a credit card or loan of some sort. The more you borrow, the longer it will take to get out of debt.


Invest a percentage of all your income that you receive in building up an emergency fund. You will not regret it. And you can do multiple things at once. Yes, laser focusing brings faster results, but faster results are not always the most pragmatic solution.

Debt increases when you don’t pay it back, but investment increases as long as you continue to save.

Don’t wait to invest. Invest now. Maximize your Roth IRA, and if you earn too much to invest in a ROTH IRA, maximize your employer’s 401,000. If you don’t have an employer, open a brokerage account and start investing in mutual funds, private equity, real estate, REITs, and other forms of investing that suit your risk tolerance.

Investing is too serious a business not to be involved in. Start as soon as possible. You don’t need to be an expert; you just need to start.

If you don’t know how to invest, get involved in Robo-investing. Robotic investing will give you the benefits of investing without doing any work. Robo-investing automatically allocates your money based on your risk tolerance and rebalances your portfolio based on market conditions.


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