Should I pay off my student loans or invest: The ultimate showdown for those of us stuck in the student debt cycle

 Hi friends! We’ve all asked ourselves this burning question: Should I pay off my student loans or start investing? It's like deciding between buying a $10 iced lattes or saving it for future iced lattes.

Fear not, let’s dive into this epic battle with some humor and practical advice.

Round 1: The Case for Paying Off Student Loans

Pros:

1. Less Stress, More Netflix: Imagine the peace of mind when those monthly student loan statements stop haunting your inbox. It’s like finishing a big project at work – pure bliss.
2. Interest Monsters: Student loan interest is like that clingy ex who just won’t go away. Paying off your loans early means less money spent on interest, leaving more for things you love, like bubble tea and travel.

Cons:

1. Bye Bye, Cash Flow: Paying extra towards loans can leave your wallet feeling emptier than your fridge before payday. It’s a sacrifice, but hey, ramen isn’t that bad, right?
2. Missed Investment Gains: By focusing solely on loans, you might miss out on the magic of compound interest – the secret sauce that makes your money grow over time.

Round 2: The Case for Investing

Pros:

1. Money Making Money: Investing is like planting a money tree. Over time, those little seeds can grow into a big ol’ forest of cash. Stocks, bonds, ETFs – they’re your golden ticket to financial growth.
2. Beating Inflation: Your student loan interest might be 5%, but a good investment can yield higher returns. Over time, this can help you stay ahead of inflation, which is like the sneaky villain of the financial world.

Cons:

1. Risky Business: Investing comes with risks. Markets can be as unpredictable as your favorite reality TV show. One day you’re up, the next day you’re down.
2. Juggling Act: Trying to invest while managing loan payments can feel like juggling flaming swords. It’s doable, but tricky.

The Ultimate Strategy: Balance is Key

Why not have your $10 iced latte and drink it too? Here’s a more balanced approach:

1. Emergency Fund First

: Before doing anything, make sure you have a solid emergency fund. Think of it as your financial safety net. Aim for 3-6 months of living expenses.

1. Tackle High-Interest Loans

: If you have high-interest student loans (above 7%), focus on paying those off first. It’s like swatting away the most annoying mosquito first.

1. Invest a Little

: Start investing even if it’s a small amount. Use apps like Robinhood or Acorns that make it super easy. Even $50 a month can make a big difference over time.

1. Use Windfalls Wisely

: Got a tax refund, a work bonus, or found $50 in your jeans? Split it between paying down loans and investing. It’s the best of both worlds.

Final Thoughts

Life’s too short to be stressed 24/7 about student loans or investments. Find a balance that works for you and enjoy the journey. Financial health is important, but so is living your best life. Whether you decide to pay off loans aggressively, start investing, or a bit of both, the key is to stay informed and make choices that suit your lifestyle.

So go on, conquer your financial goals with a smile (and maybe a side of avocado toast). You’ve got this! 

Lots of love 

Mackenzie & Beth