Is your junior or senior year in college a good time to begin investing? At Young Wealth, we’d say “Absolutely!” That assumes your bad debt is paid off first. Yes, we realize we’re beginning to sound like a broken record with this “Pay off your debt!” mantra. We don’t get paid for saying it but we do believe it’s that important. It’s a critical component of your financial education. The part you’re likely NOT to get in school.
Think of it this way. Most of your consumer debt is attached to a high interest rate. What’s the point in making a nice investment return when the new profit is running out the back door to pay for debt? Your profit is already taking a hit from inflation and taxes. Tack on debt payments and it’s the very definition of spinning your wheels.
Be patient, grasshopper. The time for investing will come. Pay off debt first, however long that takes. Throw every spare dime and penny at it until the debt beast is dead, dead, dead. Then it will be time to crank up the investments – stocks, bonds, mutual funds, real estate – go crazy with it all, though we would seriously suggest you visit http://www.JasonHartman.com to learn how we make money with our investments no matter what the economy or inflation is doing.
Use the time spent eliminating debt to learn how to invest so you’ll be ready to hit the ground running when the time arrives.
The Young Wealth Team
Flickr / alancleaver_2000
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