Money

Should I pay off debt or invest?

Six quick questions about your debt, savings and plans.

Should I pay off debt or invest? The quiz

Money choices carry fear, guilt and hope too. Let's slow down and look at the facts. Your answers stay on your device; nobody else sees them.

1Is the interest on your debt below about 5% a year?
2Do you have credit card or payday debt?
3Do you have 3 months of costs saved for emergencies?
4Does your employer match pension or retirement contributions?
5Would being debt-free give you real peace of mind?
6Will you leave the money invested for at least 5 years?
6 questions

"Risk comes from not knowing what you're doing."

Warren Buffett

If it doesn't make sense to you, it isn't for you. Never rush a money decision because of fear of missing out: rushing is the weakness of fools.

The simple order

  1. A small emergency fund.
  2. Any employer match on retirement savings.
  3. Pay off high-interest debt (cards, payday, overdrafts).
  4. Build the emergency fund to 3 to 6 months.
  5. Invest for the long term, and pay cheap debt on schedule.

Questions people ask

Should I invest or pay off my mortgage?

With a low fixed rate, many people invest instead of overpaying. With a high or variable rate, or if being mortgage-free matters to you, overpaying is a fine, risk-free choice.

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TheHardChoices gives general life guidance, not professional advice. It is not a substitute for medical, mental health, legal or financial help. If you are in crisis or feel unsafe, contact local emergency services or a crisis line now. Full disclaimer