Ep 50: How Should I Prioritize Paying Off Debt vs. Saving & Investing?

One of the biggest financial questions I get is: Should I pay off debt first, or start investing? In this episode, I break it all down with a clear, step-by-step framework to help you figure out exactly what makes the most sense for your situation.

 

We’ll cover how to analyze your cash flow, interest rates, and long-term goals, plus why anything over 6% interest needs to go ASAP before you even think about investing. I’ll also walk you through using amortization schedules and compound interest calculators to compare different scenarios—because numbers don’t lie.

 

At the end of the day, money is a tool—it’s about using it in the smartest way possible. If you’re stuck trying to decide where to put your dollars, this episode will give you a no-BS strategy to move forward with confidence.

 

Key Talking Points of the Episode

 

00:00 Introduction

01:05 Step 1: Gather key financial documents

04:54 Step 2: Adjust your cash position

09:35 Step 3: Define your life goals

11:21 Step 4: Solve the math equation

18:30 Step 5: Review your financial plan

20:59 Step 6: Automate the process

23:43 Framework recap for debt pay-off

 

Quotables

“If you’re not changing it, you’re choosing it. Every financial decision you make—or avoid—affects your future.”

 

“Investing early is great, but not if you’re drowning in debt. Know your numbers before making a move.”

 

“The more intentional you are with your money, the faster you’ll hit your financial goals.”

 

Links

 

Budgetdog

https://budgetdog.com