So you have a bit of debt🏍🏂 and you also have some savings which you want to invest. Where should your money go😑😐? The key thing here is opportunity cost🌧🌞 and whilst we can look at it from an economic point of view🌍, you must also consider it from your own personal preference.
Opportunity cost💡 means the option you lose by making a particular decision. In the case of pay off debt or investing, the bottom line comes down to how much the debt💰💰 will cost you in interest or how much your savings can make in interest💸💷. If paying off your debt will save you £100 but investing your money will bring you £150 over the same time period then it seems better to invest your savings and then pay off your debt after which you will be left with £50.
For the above example to be optimal, the expected interest on your savings and debt have to be guaranteed rather than assumptions.
The question you should always ask yourself: Can your money do better elsewhere📤📩? Warren Buffet famously carried on his mortgage on his Nebraska home🏠🏡 although he could have easily paid it off. He did this because his money was better served elsewhere.🏛🏦 ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
To come to the same conclusions as we have, you have to be confident that you are not putting yourself into more unnecessary debt and that you can stick to your plan. If your behaviour can match your financial plan then great! if not, take the safer option and clear your debt first.💎💥
As long as you keep going, you should eventually get to the end-game objective, which is to have no debt and an abundance of great, lucrative investments providing a comfortable standard of living for your family. With enough patience and hard work, this is a goal that you can achieve.🙌👌