Just for a bit of background, I’m a recent college grad (Class of 2021, whoo!) and landed a decent job which allows me to make the required student loan payments without going hungry. However, I’ve been pondering quite a bit on how to tackle my remaining student loan debt - around $30,000, for those curious. I’ve got some money left over each month after essential expenses and I’m not sure whether to put that towards paying off student loans earlier or if I should start investing instead.

Lately, with all the investment buzz, especially around stocks and crypto, it’s got me wondering if that’s the better road to take or at least worth the risk. Then again, investing almost feels like a luxury when you’ve got the Sword of Damocles, aka student loan, hanging over your head. It’s a little scary to think of starting to invest with all the ups and downs in the market.

On the other hand, throwing any extra money I have at the student loans to get them paid off sooner seems like the “sensible” thing to do. It’s the safer option for sure and would give me a real sense of relief to get that debt off my back faster. But, would that possibly be a lost opportunity to grow my money with investing?

I know there’s probably not just one right answer to this, but I’d love to hear thoughts from you folks - especially 🤔

Oh man, the student loan struggle is real, isn’t it? Here’s what worked for me, take it with pinch of salt, though: look at your interest rates first. If your student loans has a super low interest rate, it might be better to just pay the minimum and put the rest into investments. But if that interest is high, tackling your debt might be the better option. It’s all about figuring out which will benefit you financially in the long run.

And remember, you don’t need to choose one over the other. Maybe you can split your extra money: part to the loan, part to investments. It’s essentially a balancing act. And if the market tanks, you might feel better having that guaranteed “return” of paying off your debt.

Also, be sure you’ve stashed some money aside for those unexpected life events. Because trust me, they’ll happen. 😉

You’re spot on about keeping an eye on those interest rates, mate! Sometimes it’s worth it to chuck more at the loan, other times the stock market might give you a better return. Sure had that hit me like a slap in the face when the market dipped a couple years back. Still stings to think about it, ha!

But yeah, the split strategy you suggested is pretty solid. Best of both worlds, eh? And of course, can’t stress enough on squirreling away some cash for the unpredictable stuff life throws at ya. Learned that the hard way when my car broke down outta nowhere.

Good advice all around, my friend. Cheers!

Oh mate, I feel ya on the market dip! A sting I’d rather forget, aye. But you rightly said, split strategy isn’t half bad. Heck, it’s like putting your chips on both red and black! And that bit about squirreling away for life’s curveballs? Absolutely sage advice. Sure hit the nail on the head there. Don’t even get me started on surprise car repairs, feels like they come at the worst times, right? Anyway, keep riding the wave, amigo. We live, we learn. Pints up to good advice! Cheers!

Absolutely, there’s nothing worse than an unexpected car repair bill! Had one myself last month, hit the wallet harder than I’d have liked, that’s for sure. Makes you realise how vital that emergency fund is eh? As for the student loan and investing debate, I reckon it’s all about balance. Like you said, kinda like hedging your bets on both red and black. No point slaving to pay off that loan if you ain’t got a penny to your name at the end of the day. Same time, investing can be risky too. It’s walking a tightrope, mate, but we’ll figure it out eventually. Keep on trucking and cheers to that pint!

Mate, couldn’t agree more about that tightrope walk. One moment you’re thinking about how nice it is to see your student loan figure dropping and the next, you’re stressing about the fact your bank account is looking rather empty. It’s a tricky one, for sure. I’d probably say keep a backup cash fund as sturdy as you can and make small, regular investments into some low-risk assets. Feels like a bit of a compromise, but at least you’re covering all bases. And yeah, cheers to that pint - we’ll need it after all this financial chat, eh? Keep the chin up!

You’ve got it spot on, mate! Splitting between paying off loans and investing is always a bit of a classic head-scratcher. Definitely with you on keeping that rainy day fund brimming. As for those investments, may I suggest looking at index funds? Typically, they’re pretty low risk and require minimal upkeep. Let’s not forget, even small investments can snowball over time. And yeah, wouldn’t mind joining you guys for that pint after discussing all this financial mumbo jumbo. Nothing like a cold one to smooth out the financial stress wrinkles right! Keep on keeping on.

Congrats on the job! 🎉 Balancing debt and investing is a tricky decision. Paying off loans early can definitely bring peace of mind and save on interest in the long run. However, investing can potentially grow your wealth over time, especially if you start young.

One approach could be to split your extra cash between the two. Maybe allocate a percentage to paying down loans and the rest to a diversified investment portfolio. This way, you’re reducing debt while also dipping your toes into the investment world. Remember, it’s important to assess your risk tolerance and maybe consult a financial advisor to tailor a plan that suits your goals. Whatever you choose, you’re making a positive step towards your financial future! 😊