Hey Simplifiers,

If you’ve ever stared at your bank account and wondered, “Should I invest or pay off debt first?” Just know — you’re asking the most common money question on Earth.

And honestly, with TikTok saying one thing, financial advisors saying another, and your cousin shouting “BUY CRYPTO!”… it gets overwhelming fast. So today, we’re ending the confusion once and for all — simply, calmly, and in real English (not finance guru language).

Let’s figure out what actually makes sense for your money right now.

Every money decision starts with one comparison:

Your debt interest rate
vs.
Your expected investment return

If your credit card charges 20% interest and the stock market averages 7–10% long-term?

Your debt is growing faster than your investments — without your permission.
Paying off high-interest debt becomes like getting a guaranteed return. It’s the rare moment in adulthood where the math is surprisingly loud and clear.

Let’s break this down TSA-style:

High-Interest Debt (12–30%)*
– Credit cards → 🟥 Fire drill
– Payday loans → 🟥 Drop everything

Medium-Interest Debt (7–12%)*
– Personal loans → 🟧 Prioritize, but breathe

Low-Interest Debt (3–6%)*
– Student loans → 🟦 Manageable
– Car loans → 🟦 Slow and steady

Lowest Interest (2–4%)*
– Mortgage → 🟩 Long-term game

If your interest rate is above 9–10%? Debt wins. If it’s below 6%? Investing starts making a lot more sense.

Yes — sometimes investing first is the smarter option.

It makes sense when you:

✔ Have low-interest debt
✔ Get an employer match (free money — always take free money)
✔ Have an emergency fund
✔ Want long-term wealth, not just quick relief
✔ Need the habit more than the numbers

Even $25–$50 a month matters. It won’t feel powerful on day one, but by month three, that $25 has tripled to $75. And that’s the secret: wealth rewards consistency, not perfection.

Here’s the truth nobody wants to admit: You don’t actually have to choose.

You can absolutely:

This strategy protects your future and your sanity, which allows you to build discipline without the guilt spiral of choosing one over the other.

And the best part?
It frees you from feeling “behind” — because you’re moving forward on all fronts.

Reply “DEBT” if you want help mapping out your repayment strategy.
Reply “INVEST” if you want a simple starter investing plan for next year.
Reply “BOTH” if your gut is telling you it’s time for balance.

Talk soon,
C
Founder of The Simple Adult 🩶

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