Sometimes, paying down debt competes with your desire to invest. What’s the best course of action?

Here are a few things to consider.

If your cash flow is strong after paying monthly expenses, you might want to invest the extra money. But if you’re just getting by, possibly due to high-interest loans, you may be better off reducing or refinancing your debt load.

Which debts should you tackle first? You may want to start by paying down high-rate consumer loans whose interest cannot be deducted from your taxes.

For the future, you may be able to help control your debts by building an emergency fund, with the money held in a liquid account, to pay for unexpected expenses.

On the investing side, if your employer offers a 401(k) with a match, contribute enough to earn the match. It’s effectively free money.

However you manage investing and debt, taking small, incremental steps is key to helping you get to where you want to go.

This content was provided by Edward Jones for use by your local Edward Jones Financial Advisor, Casey Caliva, CFP®, AAMS™, at Historical 30th & Fern. 

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Address:  2222 Fern St., San Diego CA 92104
Phone:  619-516-2744

Web: www.edwardjones.com/casey-caliva