Investing Beats Paying Down Debt First

investing-money-safely

Many wonder if it is more appropriate to invest money safely, or pay down debt first. According to numerous financial experts and those that have acquired a great deal of wealth during the course of their lifetime, it is often best to engage in the act of investing money to make money rather than focus on eliminating debt. In a world where numerous people are plagued by debt and find themselves being crushed under the pressure of what they owe, it seems logical that debt should be paid down first. This is especially true considering the fact that the interest rates associated with debt are typically higher than the returns experienced through investing money safely. However, there are some instances in which it is better to go about investing money to make money than to eliminate all of your money to pay off what you owe. In the long run, investing will likely yield higher returns which will consistently keep you in money.

It is a known fact that all money is worth the same and is interchangeable.

For example, if you have $100.00 in your bank account and $100.00 in your wallet, each of the $100.00 that you have in either is equal to the other. If you have $100.00 in your bank account and owe $100.00 in debt, the actual dollar amount is the same, only, the negative amount or debt cancels out the wealth that you have accumulated within the bank, leaving you with a $0 amount of wealth. The one detail that makes all the difference between investing money safely and paying off debt is that, when you invest, your money has the ability to grow. Now, you may be a little confused because credit card debt has the ability to grow, too. For example, the interest rates associated with a credit card has the ability to increase the amount of debt that you possess, and a savings account has the ability to earn you more, as a result of interest. While it is true that there are many variables when it comes to the growth of debt or the growth of investments, we must stick to the concept that investing money to make money is the way to go, because, in the end, with the right investments, the amount of money we receive as a result of growth will drastically outweigh that which results when our debt grows.

By investing money safely, you will find that the act of investing money to make money is a successful one.

Your money will grow at a higher rate and, eventually, you will be able to cash out the amount of your investments to successfully eliminate the debt that you have accrued during the course of your lifetime. In the process of investing, you should talk to your creditors about lowering the interest rate associated with the debt that you owe. This will allow you to save even more money. Once you pay off the debt that you are plagued by, you will find that your investments left you with additional money. This makes for an absolutely wonderful fresh start! By learning how to engage in the act of investing money safely today, you are sure to experience many financially stable tomorrows! Investing money to make money is the most productive technique for acquiring the wealth you desire and deserve!

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