The document discusses whether to pay off debts or invest first. It recommends starting to invest in a Roth IRA as soon as possible, even while paying down debts, in order to benefit from compound interest over time. It notes paying off debt is important but stopping all investing to focus only on debt repayment is not necessary. The document then provides an example of how $100 invested monthly at a 15% rate of return could grow to $67,000 over 15 years through compound interest.

1. Money Tip #3
Pay off debt or invest first?

2. 3. Should I pay off all my debts first before I start
investing?
– This is one place where I diverge from Dave Ramsey’s teachings. I
personally think that you should start investing in a Roth IRA as soon as
you can regardless if you have debt or not. Waiting will only delay the
power of compounding interest. Paying off debt is very important and
should be at the top over everyone’s personal finance to do list, but I
personally have a hard time stopping investing completely to throw all
available income at debt reduction. I like to continue investing even if it is
just a little bit while paying off debts.

3. Compound Interest, How does it work?
- Assuming you put
$100/month in one year
equals $1,200.
- Assuming 15%
Accumulated
- $100/month is
like buying 20 cups
of coffee at
Starbucks/month.
- or going to the
movie theater 8
times/month.
Do you think you
can save
$100/month for
$67,000 after 15
years?

4. Interesting thought!
- Why do we use a GPS to find our needed
destination though we don’t use one for our
financial goals.
- I am able to give you a complimentary
MoneyMap if you contact me directly at
evans.christianccf@gmail.com
Feel free to contact me.