*numbers used are for example only


lets say you are 60K in debt. its debt that is manageable, but it is still debt. (lets say student or cc or taxes or medical, etc)

then lets say you come up on 30k. (make up a scenario...your aunt dies, you won the lottery, etc)

no major obligations (i.e, mortage, kids, etc)
401k active
savings active

would you just drop that money you came up with on the debt thusly halving it or would you find a way to grow it/invest?

this was from a talk I was roped into and people seemed split. half leaned towards paying down debt immediately and the other half lean towards investing it.

WWYD?

Personally I would go with the LA jeans and Open booty option but thats just me

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https://soundcloud.com/swageyph/yph-die-with-me

fuck you.

https://coldhardbitchet.files.wordpress.com/2014/03/tumblr_inline_n2719cwjpm1rxrq21.gif

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https://soundcloud.com/swageyph/yph-die-with-me

fuck you.

I think most debt carries interest rates that are considerably higher than what you reasonably expect to get from investments.

If you have low interest debt, then it becomes more of a psychological decision.
You can answer the question mathematically, but there is also the mental impacts of carrying debt that some should consider

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put 5K in a stash in my house and use the rest to invest while paying off the debt more aggressively.

but WTF do I know...

all I know is if I had a chance to work with a lump some again I would definitely work with cash. It's way too easy to burn through money when you swipe.

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

but i'd probably put 25k towards the debt assuming the interest rate isn't ridiculously low

Windfalls are meant to be celebrated.

<-><-><-><-><-><-><-><-><->
<-><-><-><-><-><-><-><-><->

I like to have a little bit of liquid easy to get to cash in the bank in case of unexpected bills (which aren't always emergencies, maybe it's an opportunity to go on a dope trip).

I also don't like having to much of that kind of money around because it slowly goes down over time.

So I would pay off the high interest debt up to the amount that allows you to keep a little liquid cash on hand.


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"Everyone has a plan until you punch them in the face. Then they don't have a plan anymore." (c) Mike Tyson


"One of the most important things in life is what Judge Learned Hand described as 'that ever-gnawing inner doubt as to whether you're

in the scenario savings is set

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https://soundcloud.com/swageyph/yph-die-with-me

Cause Like I said it could be used for vacay or some other big purchase item.

I guess I am saying spend a portion on something worthwhile.


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"Everyone has a plan until you punch them in the face. Then they don't have a plan anymore." (c) Mike Tyson


"One of the most important things in life is what Judge Learned Hand described as 'that ever-gnawing inner doubt as to whether you're

student loan debt? I'd invest that money. No extra money going to loans.
credit card debt? I'd use half to pay down the CC, then invest the remainder after buying myself something nice.
medical debt? I'd pay off a portion (depending on the breakdown) and then buy myself something nice then invest the rest.

But in now way would i just invest all of the money, because as stated above, the interest from investing won't be more than interest you could be charged with the debt.