What Should You Do First: Pay Off Debt OR Invest? | Ep. 239

• Tiffany introduces the common question: should you pay off debt or invest first? She clarifies she's referring to consumer debt like credit cards, not mortgages or car loans.

When you are investing, you want to look at your time horizon. The longer you can be in, the better it is for you.

• Credit card interest rates of 20-30% mean paying them off provides a guaranteed return that no market investment can match.

If you pay off your credit card at 25%, you are getting a 25% return on your investment because you don't have to pay that interest back.

• Low-interest debt like student loans (3-5%) or mortgages may warrant prioritizing investing since market returns could exceed these rates.

• The decision ultimately depends on your personal comfort level with debt and what causes you stress.

• Tiffany shares that she personally invests $25/month while paying off debt, proving you don't have to choose one or the other.

If things are important to you, you make the time, space, and ability to get them done.

• She emphasizes that sometimes the issue isn't spending but income, and finding ways to earn more through side hustles or career advancement.

• Don't compare yourself to others or feel pressured to invest certain amounts. Start where you are with what you have.

You are the only person that matters in your financial situation. Don't feel pressured to do what everybody else does.