Displaying items by tag: debt
Saving a lot of money as a Resident because you're not spending 50% of your take-home pay on rent? Making extra money because you're moonlighting like a boss and wondering where to save that extra money? Wondering whether a pre-tax or Roth investment is best to start investing in first? What about paying down loans or investing in the market? I describe how you should prioritize all of that in this post!
This is a common question that I get from my colleagues. To answer this question, I use a statistical approach to provide a conservative estimate of the threshold at which you would define as your "high-interest debt." If a loan has an interest rate higher than this, then you pay it down first. If the interest rate is lower, then you invest in the markets first.