Should You Invest Or Pay Off Debt?

Should you invest money while carrying large amounts of debt?
How do you manage debt while investing? Watch this quick video to find out! As always, thank you for supporting the channel!! Don't forget to drop a like & leave your thoughts in the comment section!



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[WhiteBoardFinance]

Heart = Pay off debt
Head = Leave the debt and invest the rest at a greater return than what the debt costs.

I prefer being debt free, because if anything unexpected happens in life, i know that I'm not burdened financially.

[SimplyHerpes]

This was a good nuanced video without diving too deep into the details. Pulling back the reins is tough to do when answering this question. Once you start diving into the types of debt and types of investments then it turns into a monster of conversation involving detailed individual topics. Good job on keeping it dialed back and using simple rules for prioritization.

[InvestingHustler]

Great advice ! Debt is less unpredictable vs investments which is more unpredictable. Pay of your high interest debt first then focus on investing.

[josephhogue]

There's a quantitative argument, definitely pay off that high-rate debt before investing but I feel like there's also an argument to be made that investing even before debt-free (even if it's just $50 a month) will help build that habit of saving. The fact is that spending and shopping is too much fun and many people will never be completely debt-free...but everyone (God willing) will need something for retirement eventually.

[stephane]

Great video Nate, an excellent point. Using the interest on your investments as a sole strategy to pay of debt, even at a low-interest rate, is not wise.

[mier]

Haven’t seen this video yet cause I’m in school but in my experience I’d pay debt off first. If your investment goes wrong you’ll just be digging a hole.

[carbrock.]

For me, it's (generally) pay off debt first. With debt, you are throwing away money every week (in paid interest), whereas with investing you're not losing anything unless you sell while down.

[ousmand]

i love your videos.. I'm a photographer as well... You should white balance your videos.. Will make the difference! Thank you for putting out the positive information that our generation so desperately needs! you rock

[ZipTrader]

Great video Nate, always depending on the interest rate.

[azteca]

We paid off the mortgage early. My husband wanted to do that. Since I battled cancer in the past, when I was single and had the mortgage. And recently found another tumor in my kidney. Thankfully, this one was benign. He didn't want me to stress out about the mortgage. In case I had to stop working due to cancer OR any illness. Not having mortgage is a great feeling. And one less thing to worry about.

[josesilva-rodriguez]

I’m glad you discussed this subject. I been cracking my brain over it for the past year. I asked on Phil Townes’ channel the same question and I don’t think I got much of a reply. You gave some good insight and some confidence in my problem solving that will help me sleep at night. Till the next video.

[claresse]

Hi Nate! I was hoping you could make a in depth video on how to make money online for twelve year olds. Also one on how you make your videos.

[NateOBrien]

Hey everyone! Thanks for checking out the video! Don't forget to drop a like and share your thoughts in the comment section!

[vermasean]

I'm still paying off debt from when I bought my first bottle of Voss Water. JK! Excellent information Nate! 100K is around the corner!

[ellisj]

Hey Nate, what do you think about the US stocks dropping recently? Anything to be worried about you think?

[MoneyRecall]

Everyone has there own route. Most do a little bit of both. For sure pay off all the bad debt first.

[livingunashamed]

Yeah I have a few student loans at 6.8% that I want to pay off before investing. Still have 401K at least.

[skwira]

There should be a minimum payment to yourself for investing just like minimum for debt payments. Then decide what to do with the rest if you have money left over. 30 year or more of buy and hold in an index fund is far more certain than 15-20 years. I do however take issue with the people who say investing will give you more. More when you’re 90 and almost dead or more when you’re 55 and need heart surgery? I would start by investing enough in your teens and 20s where you can say I have enough to buy an annuity or withdraw 3.5% and live comfortably. Then tackle the debt.

[lee-]

I pay majority towards debt but I still invest

[redpilldragon]

You will be charged interest on your debt. So unless making more than what you're paying out pay off the debt.