Reasons Why Senior Citizens Who Want To Invest Should First Pay Off Their Debts
Investing your money is the best thing you can do at your 65 and beyond. The returns from your investments will supplement your income and guarantee you constant inflow of money. That way, you will be financially independent and you will be able to enjoy your twilight years even more since financial stress will be out of the picture. But there is one thing you should do first before you dive into investing. Yes, you guessed it right! You need to pay off your debts and credit cards especially the ones with high interest rates before you dive into investing. Starting to invest with huge high-interest debts is one of the biggest mistakes senior citizens often do, and it is one of the main reasons most people never prosper when they start to invest.
Of course, you are hearing how sometimes the stock market has gone up 1% and you would really want to immediately get on bored with such kinds of gains. But there is always a catch, and getting Affordable Health Insurance 2020 from https://www.healthinsurance2020.org and
the catch is that without having your foundation in order, your investment attempts will definitely come crumbling to the ground. If you are not yet convinced, then here are more reasons you should first clear your debts before investing.
- Fewer monthly bills
High-interest debts and credit cards mean that you have to part with a lot of money as an extra payment to cover the interest rates. This means that you have more monthly bills to pay. If you clear your debts, there will be fewer monthly bills, and this means that more money will immediately be available for you to invest.
- Your net worth will climb
Paying off your credit cards should be your priority because it will have a positive effect on your net worth. When you pay off your credit card, it will make your net worth to start climbing gradually since it is not being held back by finance charges and interest payments.
- Extra payments on credit card is like making an investment that returns the same percentage
Look at it this way: If you are making an additional payment on a credit card with a 12% interest rate, it is functionally the same as when you are making an investment that returns 12% interest rate. If you have researched about investing, you have definitely realized that it is hard to find an investment that can guarantee and investor this kind of consistency. So, having high-interest debts and credit cards is a sure way to lose money, which you could otherwise plough back into business.