Investing is subjective, in the sense that it really is all about making it work based on your own unique needs and goals. However, when you’re in debt it can be hard to figure out the ins and outs of investing when you already have so much on your mind. There’s no reason to panic and it’s just going to make things worse if you do. What you’re really going to need to do is start thinking about what you want to get out of investing, and how to build a plan that’s really going to work for your needs.
So, to answer the ultimate question of whether or not to think about investing while you’re still in debt — we don’t see any reason for you to get out of the market until you’ve gotten fully out of debt. Everyone is going to have different opinions about this, but you have to decide for yourself what’s really going to be the best thing for you to do. If you aren’t careful, you’ll find yourself being left behind in the marketplace. At the same time, you don’t want to just dive in thinking that everything is going to flow together smoothly. You really need to make sure that you have a strong plan on getting things done. Otherwise you’ll just keep coasting along and who really wants to do that?
You should have a few things down pat before you dive into investing while in debt. If you’re someone that knows your budget down to the last possible bit, you will be in good shape to invest. On the other hand, if you’re deathly afraid to even think of your finances, you really aren’t in any shape to start your investing career.
You need to make sure that even if you start putting money towards your investing goals, you still have enough to take care of your normal living expenses as well as your debts. You don’t want to get behind on your debt repayment plan just because you want to invest.
Investing could mean getting into precious metals or it could mean going into a mutual fund. In fact, it could be something as small as getting into fractional stocks and bonds. Investing is always what you make of it, so don’t beat yourself up if you can’t really invest as much as other investors.
Educating yourself is really going to be one of the most important things that you can do before you get too ahead of yourself. Thankfully, we live in the information age and this means that you have more than enough resources to enter the investing world at your own pace.
Tackling debt can make you feel even more empowered to begin investing in yourself. However, if you have high interest credit cards, you might really want to wait until you have those balances under control. The high interest rates will just suck away money that you could be putting back into the business and growth of you! Don’t delay — start thinking about your investing and debt reduction options today!