Funding Your Future (Building Your Financial Foundation 2/2)

[@stevemurray3765]

Thanks for the video. Great advice

[@annablackmon5323]

Why wouldn't you repay debt on cards with less than 6% rate? Doesn't it still accrue over time?

[@tswanson17]

You do, you just pay it down more slowly and just pay the minimums. If you have $1000/mo of savings and your car payment is $300/mo with a 3% interest rate, instead of paying off your car loan faster at $1000/mo, you'd more likely be better off long term paying the minimum payment and investing the extra $700/mo which is likely to achieve an annual rate of growth (maybe 7%) which is much higher than the 3% interest. If your interest rate is higher like 9%, you want to pay that down as quickly as possible and it's a better use of your ESI resources than extra investing. FYI, I'm a licensed financial advisor and agree with the vast majority of what these videos teach!

[@tramarthomas6105]

i think because the amount you make from investments out weight what you lose on the debt in the long run, but hes also saying not to ignore the minimal payment