In this episode Rob tackles questions from the Dough Rollers Facebook group. The common theme: should you pay off debt first and save or invest later?
If you’ve ever thought about borrowing from your 401k to pay off debt, you’re not alone. One of our readers is considering this option and posed the question to our Facebook group. The responses are full of helpful advice but Rob is chiming in with a unique perspective–how introducing constraints can help you tackle this problem.
First, you’ll hear about how saving is like a muscle. It needs to be exercised. That means you have to build the habit of saving now, even if it’s a little bit at a time. You can even start with just $25 a month. The important thing to remember is to start working that saving muscle.
When it comes to debt, find out why the one-size-fits-all solution that people search for doesn’t exist and how even when you fail, you may actually succeed.
One of the best parts of the episode that will really make you think is when Rob brings up the concept of constraints. He will have you looking at the possibilities of paying off debt in a new way that will force you to come up with some creative solutions you may have never considered before.
If you would like to further discuss this topic with other like-minded financial enthusiasts, please join our Dough Rollers Facebook group at doughroller.net/facebookgroup.
Resources:
- 23 Powerful Tips and Tools to Eliminate Debt
- 10 Smart Ways to Invest $10,000 Like a Pro
- How to Invest with Just $25 A Month
- An Awesome (and Free) Investment Tracking Spreadsheet
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The earlier you start investing, the better. I always recommend investing at least a few dollars each paycheck, even if you’re trying to get out of debt quickly. Those few dollars really can add up before retirement.