!nFAMOUS!nFLUENTIAL: Fwd: Pay Off Debt Or Save Money

Tuesday, December 1, 2020

Fwd: Pay Off Debt Or Save Money – Is One Better For You?

Hi!

Should you pay off debt or save money?

Every situation is different, and today, I'd like to go over different circumstances so you can figure out the best answer for your personal situation.

Whether you have a mortgage, student loans, a car loan, credit card debt, medical loans, or something else, you may be wondering if you should only focus on paying off your debt and how saving money fits in as well.

And, you may be stuck.

A big question when paying off debt is if that should be your sole focus. Should you still be trying to save money while paying off your debt?

Or, should all of the extra money you have be going towards your debt?

You may be wondering things such as:

Should I pay off debt or emergency fund first, as in set some money aside for emergencies?
Should I pay off debt or save up for a downpayment?
Should I pay off debt or save during a recession?
Can I pay off debt AND save money at the same time?

And so on and so on.

Paying off your debt is a great thing to think about.

However, where does saving money come in when it comes to your overall financial plan?

This becomes the really tough decision – should you pay off debt or save money? Is It better to pay off debt or save? Should you do both at the same time?

I am asked these questions all the time because people realize that both are very important personal finance decisions. But, everyone is going to have to make the best choice for themselves.

If you've read How I Paid Off $40,000 In Student Loans in 7 Months, then you know that I paid off my student loans quite quickly. In order to do this, I had to decide whether to focus on my student loans and pay off debt, or invest in my long term savings plan.

It was an incredibly tough decision to make, but I made paying off my debt my sole focus.

Deciding to pay off my debt while putting $0 towards my savings did not sit well with about 50% of my readers.

But, that's personal finance – it's personal!

Just because I made this choice doesn't mean that it's the only choice. In fact, I think that saving some would have been an equally good decision (maybe even better).

If you are asking yourself whether to pay off debt or save money, I can't give you a definitive answer because everyone's situation is so different.

However, I am going to go over some common questions about this topic to help you make the smartest decision for your situation.

Please head to Pay Off Debt Or Save Money – Is One Better For You? to read the full article.

Thanks!

Jon-jon

---------- Forwarded message ---------
From: Michelle Schroeder-Gardner <michelle@makingsenseofcents.com>
Date: Tue, Oct 6, 2020 at 8:41 AM
Subject: Pay Off Debt Or Save Money – Is One Better For You?
To: João <joaoa.desilva2020@gmail.com>

Cheers,

Michelle from Making Sense of Cents

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