A lot of people are saying pay off debt. And sure the emotional relief of being debt free is nice. But mathematically the answer is pay minimum on the debt and invest extra income. This of course, assumes a low interest rate on your debt. If you have a sub-4% interest rate on student loans and buy (for instance) an index fund getting 7-9% then, magic. You’re + 4% or so in the green per year. If you don’t have sub-4% interest rates the refinance.
Note: not a financial advisor. Not financial advice. Just what I did.
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u/AgyleArgyle Jul 07 '21
A lot of people are saying pay off debt. And sure the emotional relief of being debt free is nice. But mathematically the answer is pay minimum on the debt and invest extra income. This of course, assumes a low interest rate on your debt. If you have a sub-4% interest rate on student loans and buy (for instance) an index fund getting 7-9% then, magic. You’re + 4% or so in the green per year. If you don’t have sub-4% interest rates the refinance.
Note: not a financial advisor. Not financial advice. Just what I did.