Choose: To Pay Off Debt or Save Money?

Have you ever bought something, thrown a party, or taken a vacation with a justification of we deserve it? There is nothing wrong with rewarding yourself or loved ones by splurging on material items or going on a nice vacation, but it should not take precedence over being fiscally responsible. It is acceptable to reward ourselves once we reach certain financial goals set from a previous year or once we meet an investment goal.

Spending – Controlling spending is difficult for most of us to do. Whatsoever your financial goals and dreams are, your first priority should be in paying off loans and also striving to save. Few pay-down tips and strategies are mentioned on how to go about it. The majority of truly wealthy individuals do not live as if they were wealthy. Only a small percentage of them live extravagantly.

Dragging your finances is never the right way to approach debts. This would only drain your wallet and end in reducing your financial options. The credit score of the individual is also hampered when one lingers long with the credit balances which might even prevent one from achieving other vital goals and dreams, such as buying a home. Often many choose to approach Credit Excel Capital (Singapore) for short term financial assistance.

Finding the proper balance between the money we invest and the money we spend on material goods can be challenging. There are two different ways we can assess our spending habits. We can lower our standard of living in order to be able to create excess cash to invest. You can impose a strict budget for your family or you can increase your means in order to maintain your desired standard of living while having a targeted amount that you choose to invest yearly. As a businessperson try and increase your means in order to maintain your current standard of living and increase the amount of money we are investing. Have it mind that life is too short to live under a stressful budget in order to find the additional money to invest yearly. That doesn’t mean that you shouldn’t have a budget, you should have one. Try to choose a simple life maybe by not to driving fancy cars, throwing parties for people that may or may not be friends, and choose not to dress to the “T” daily, all of which costs money that would come out of our investment funds.

Have a primary goal of increasing our means is to generate additional money to invest. Hope that your investments provide enough passive income to be financially free so that we do not have to work for a paycheck.

Paying Down Your Debt

Always make paying my debt your first priority. If u pay your debt and you’re left with something substantial save it or invest. The problem with keeping your debt paid down without changing your spending habits is that it creates a vicious cycle of reckless spending. If you are like me, you will find very little if any additional money to invest. Read Robert Kiyosaki’s book Rich Dad Poor Dad book, he discusses paying yourself first. Take time to realize and understand what he means by paying your self first. Paying debt remains a very high priority, but do not pull money from my investments to pay my bad debt. Just as a reminder, bad debt is debt that we pay ourselves and good debt is debt that someone else pays, simply the debt of an asset.As hard as it may seem to dig your self out of a mountain of old loans, it is possible. To alleviate and ultimately lower the debt that you’ve picked up, you must be disciplined. But it is even more crucial to design a plan that you can actually follow.

It is a good idea to organize all financial documents. Checking your credit report often is the first step to see your financial history. Make sure that all loans and debts are correctly stated, and then gather all your information for debt consolidation this will improve and keep a good relationship wit your moneylender.


We are all taught to save money from a very young age. I suspect that one reason we are all taught to save is that we all have been influenced directly or indirectly by people that had experienced the great depression. After experiencing the great depression, many people preferred the security that comes with saving money. There are still several people today that so risk adverse that they prefer to save money rather than “invest”. As hard as it may seem to dig your self out of a mountain of old loans, it is possible. To alleviate and ultimately lower the debt that you’ve picked up, you must be disciplined. But it is even more crucial to design a plan that you can actually follow.


There are many vehicles for investing. We all have to find our niche to become a successful investor. Try and go through the growing pains of investing. The more informed you are about your investments, the more you lessen your risks. The more control you have over your investment also lessens your risk. For example, when buying stocks in the stock market we have very little control of our investments. The only control we have with stock is the timing and the price we pay for a given stock and when we sell the stock, not necessarily the price we get for the stock. We all know someone that is waiting to retire because they did not feel like they had enough money to retire due to our current recession.

Try and do research on each investment, read to increase your financial knowledge and get experience by investing. Do not be so risk adverse that you are afraid of losing money. We all are going to lose money on our investments from time to time. Learn from the variables that cause you to lose money and avoid making the same mistakes. There are no get rich quick formulas. Just be persistent in you pursuit of financial freedom.

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