[Music] uh Smokey asks, I have 13k in student debt. Would paying the minimum payments and investing the rest be a bad move, or should I pay it off as fast as possible? Thanks. So, Smokey, you're not in a unique situation where most people come into their adult life or they are experiencing their life, and they think to themselves, Man, I just wish that I knew what to do with my next dollar. I wish there were a way for me to figure out where to deploy this dollar for maximum usefulness. And that's why we came up with a financial order of operations. It's a nine-step tried-and-true process of what you should do. And so, when you think about this $113,000 student loan debt, you have to figure out, Where am I on the financial order of operations? Okay, as I'm moving through it, well then, I have to answer the question, All right, student loan debt, does that qualify as high-interest debt, which would be a step-three item, or is

my student loan debt, low-interest debt, which would be like a step nine item, and depending on the answer to that, will dictate how you prioritize. Should I pay it off? Should I knock it out? What's the best bet? How will he decide? Like, how does someone know if student loan debt is high interest or is low interest? Yeah, we've actually given some thought on this. We covered it in the financial order of operations. We covered it in Millionaire Mission is for if you're in your 20s, 'cause there's always this opportunity cost of what to do with your next dollar. We think if your student loan rate is greater than 6%, then yeah, you probably should prioritize getting rid of that. However, if you're, you know, if it's four and 3/4 or some other lower number below six, why not pay that minimum? But then let's get you into the emergency reserves with step four. Let's get you into your Roth IRA of step five. Let's get into the 401K. And then, of course, when you get to step

N9 let's go attack that and we even, by the way, this changes. Because by the time you're in your 30s, and we have a great graphic on this that the team can pull up, is that you can see by the time you're in your 30s, we lower that expectation down to 5%. By the time you're in your 40s, it's 4%. 'Cuz what we want you to understand is that as you go through life, your investment goals change, but also your desire. There's get wealthy behaviors, there's stay wealthy behavior. So we want you minimizing debt, but we also don't want you missing out on the opportunity to start those first investments, especially if you have a low interest rate on some of those debts. Because early on, your dollars are so, so powerful. If you've not checked it out, go check out our wealth multiplier tool. You can actually put in there and see, Okay, if I have, I'm going to use $100. If I have $100 and I apply it against my

student loans. It's going to save me this much in interest. But if I take that $100 and I'm 27 years old and I go invest that for the future, that $100 can multiply by your wealth multiplier. So if you not check that out, go to moneyguide resources, check out the wealth multiplier, and that will help you decide what's going to be the most efficient and effective use of my next dollar. And I love that Smokey is trying to get out of it. I love that the idea of being debt-free.

Pay Off $13K Student Debt Quickly or Invest the Extra Cash?

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