Creating a budget that works for you is very important, especially if you want to save more to reach your financial goals.
The first thing that can really influence your decision to pay off debt or invest is how high your interest rate is.
By paying off your debt, you will get more energy to focus on improving other parts of your financial life. You can choose to start investing your first dollar.
If you don’t have an emergency fund, this could lead to getting into more debt – which is exactly what you want to avoid.
If you think that you are still far from your financial goal, look for ways to earn extra income through side hustles and build your wealth.
If you want to concentrate on paying off your debt first rather than putting your money in investments, then you should do so. Do what you feel is important.
If your budget does not allow you to invest, you can hold off on investing and concentrate on paying off your creditors.
Investments can earn you more money for your current and future needs. But you need to understand that investing carries with it a risk that you may partially lose money.