Many people wonder whether they should pay off their student loans or save up money for retirement. They have been told that they should save up for retirement. Many financial experts advise people that if they pay off their student loans, then they could be missing out on millions that they could save for retirement.
Michelle Singletary, who is a personal finance columnist for the “Washington Post”, stated that people should focus on paying off their student loans. Student loan balances have a tendency to grow over time because of the interest that is added. Many people who focus on saving for retirement find that their student loans have grown to an alarming balance.
There are many sacrifices that people make to pay off their student loans. Some people move back in with their payments so that they can save money and put more towards their student loan balance. They may also have lived with roommates. Additionally, they may have avoided having a huge wedding and racking up credit card debt.
Some people even avoid buying a home until they have paid off their student loan debt. All of those sacrifices will pay off once the debt is gone. They will be able to save up more money for their retirement. They will still have a lot of time to save up money for their retirement.
That is why it is a good idea to focus on paying off your student loans and any other debts that you have first. It is also a good idea for you to make investments and match your employer’s contributions. Joe Duarte is a market analyst and author of a book entitled “The Everything Guide to Investing in Your 20s and 30s.”
Joe stated that debt is an albatross around your neck. He said that is why paying off debt should be a priority. He said that the faster you pay off debt, the earlier you will be able to start saving.