In this post, Caitriona poses a scenario as to the pros and cons to paying all debt down before starting to invest or doing both simultaneously.
When you have debt, it can be debilitating and you often cannot see the wood from the trees. BUT all is not lost. In my personal experience, injecting some light is optional. When I started my financial wellness journey, the weight of debt was excruciating. But I chose to invest £20 per month whilst getting on top of my debt. That nominal amount per month served to far exceed my expectations in so many ways, not least because it provided a chink of light in a dark time. Watch and learn how you also can do this, should you desire some light to the dark tunnel you are experiencing right now.
Does it seem counterintuitive to you to start saving or investing when you have debt you need to pay off? It certainly did to me when I started on this journey. I mean why would I spend my hard earned money investing when I was already struggling to keep on top of my debt.
Then the light dawned as my mentor explained that the simple act of putting a small amount of money into a savings or investing account, provided some light to the darkness that came with my debt. I was so proud each month to put that £20 away and watch it grow.
This action taught me a lot about investing, investing platforms and how index trackers work. Plus over a short period of time, I had amassed a sizable amount and was in awe as to how it had expanded without my input with my choice of my investments. It taught me that having a small amount of light present as I navigated the heavy dark space of my debt was crucial to not letting the debt get on top of me.
So if your debt is getting you down and you see no light right now, I would encourage you to explore the possibility of injecting some light into this situation and see what happens. Many platforms have a minimum monthly amount of £25 so with this you can invest and educate yourself on how you can get your money working harder for you. Explore and see what you can find.
To Your Financial Wellness,