Dmitriy Fomichenko, President, Sense Financial
@dfomichenko
It is wise to balance between the two goals - paying off your debt and saving for your future.
If you have a 401k through your employer with any matching contribution, you should consider maximizing this benefit first.
Then, any high-interest loans should be your priority, as they may outweigh any returns you can get from investments. On the other hands, if you wait too long to start saving, you can miss out on years of the compounding interest. Later on, even if you become debt free, there is a limit to how much you can put into a retirement account each year and hence, you may not be able to make up for the lost time.
So without knowing more details about you, such as your income level, your loan amount, your retirement goals, etc., I would recommend paying off the high-interest loan aggressively. If the loan is low-interest, try to make regular payments and put the rest into your savings. To get more a specific recommendation, talk to a financial planner and have them go over your finances in details.
North Capital, Financial Advisory Firm
@NorthCapital
This is a difficult situation, since paying off student loans and saving for the future are both worthy objectives.
It is probably a good idea to have an emergency reserve set aside for any unforeseen event in the future. This would be a good place to start. Consider saving up anywhere from one thousand dollars to 3-6 months of living expenses. Once this portection is put into place, focus on your debt.
If your student loan balances are significant, don't get discouraged. If you want to pay them off less aggressively, so that you can save for some other type of goal, that's ok too. Just remember, you might want to consider delaying other long-term obligations, such as taking out a mortgage, until after you have decreased your liabilities in terms of your student loans.
Congratulations on making plans!
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