What Do I Do First — Invest, Save, or Pay Debt?by Tim Manni
It might be rare these days, but if you have a little extra money left over at the end of the month, what should you do with it — pay debt, invest it, or boost your savings?
This is a question we hear a lot, and it just so happens that personal finance experts Ken and Daria Dolan posted a video on their Twitter page this morning that helps to answer that exact question.
Here are Daria’s suggestions:
- Pay off, or pay down, your credit card balance: This should always be your number one option, says Dolan.
- Contribute a little extra to your retirement plan: Whether it’s a 401k or an IRA account, this is always a smart option for your money.
- Put it towards your mortgage: It may surprise you that the Dolans ranked this option last, but with real estate prices falling and the probability that they will continue to fall, says Dolan, this should be last on this list.