Save Or Payoff Debt?

Save Or Payoff Debt?

Putting off saving for retirement until your debt-free could be a costly mistake. “Thanks to the magic of compounding, even small contributions to your 401(K) will grow significantly over a period of time.”

In order to lower your debts and free up cash flow, “review your expenses for ways to cut; look at how much you pay for your cell-phone plan, cable package and restaurant meals.” You can also increase your cash flow by paying off debts. “Paying off a card with an 18% interest rate is the equivalent of earning an 18% return.”