FMOOD 0184: Should We Always Wait to Invest? - a podcast by Tom Merlino | Tom is inviting you to follow him on his journey to get out of debt and get into prosperity.
from 2017-06-18T06:00
Is it a hard and fast rule to wait until you're out of debt before you invest? Intuitively, it does make sense to only focus our resources towards paying off our debt as quickly as possible. What happens if getting out of debt takes much longer than what we had originally anticipated? We may be passing on some investment opportunities because we are putting all of this off until we're out of debt completely.
The main issue that I have with this is my knowledge that the essential component of compound interest is time. When we pass up time, we can't get it back. I don't necessarily think that we have to be going all in with investing while we're in the process of getting out of debt, but I do believe that we may want to consider investing a little during our get-out-of-debt journey. We can invest more once we're closer to getting out of debt or once we're out of debt completely.
Another benefit is that we can take advantage of any company matches that we may be eligible for with regards to retirement plans. If we don't take advantage of this, we are passing up free money. This doesn't make a lot of sense to me. We're also passing on the experience that we can get with investing while we're getting out of debt so that we're not starting from square one years down the road.
The bottom line is that this decision is up to us as individuals. We just need to review our options, and just like anything else, make the best decision based on our particular situation.
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