It depends.

During one of my sessions, my client asked me this question - “Can I invest while paying off debt?”. Interestingly enough I had this same questions quite a few times before via my inbox and during my #DearSisterCLT talk. A lot of people figure that it is smart to do one thing before doing the other. Which I completely get. You see countless financial people telling you to do such. Heck, I believed that too until I started learning more about the coint. 

But, let’s take a look at some stats before we talk through this a bit further… What’s the average amount of debt that Americans face? Let’s break this out per age group for context: 

Under 35: $67,400

35–44: $133,100

45–54: $134,600

55–64: $108,300

65–74: $66,000

75 and up: $34,500

While numbers can be higher or lower for some, debt is still ever present for many of us within the US. And this time with this pandemic isn’t making it easier for some of us to think that paying down debt is possible. But, check this - Americans are actually paying down credit card debt during this time. This goes back to the disciple and the strategy that you create around formulating your wealth factor. It IS still very much possible in the middle of the season we are in. Thing is with paying down debt is to make a plan for the position you are in.

 I shared this in the last Pandemic Paper edition along with on Instagram, you have to formulate your pay down strategy to make it work for you. The debt that you carry is to be seen as a bill that you are consistently working towards. The Bill, Build and Blow approach is one that allows it to be formulated not by percentages, but what you can actually do with the money you bring in. If you find yourself not able to pay down that debt, we have to determine if there is a way to consolidate or bring in more cash (possibly both). 

Going back to the original question, “Can you invest while paying down debt?” Think back a few seconds ago to where I brought the Bill, Build + Blow method up. IF you are able to formulate a plan for your paper, you can add investing into the mix. Think of investing like a bill that you are paying on for future use. Seriously! Depending on your time IN the market, you will pay yourself consistently through two methods - dividends + capital gains! This will be seen not only in a long term play, but for some funds quicker than others (short gains). Here’s the ting, you don’t need stacks to invest. The scale is in the start! If you are new to investing, you need to understand what you are doing before throwing mortgage payment at some random stock. I’ve started with $10. No lie, $5 sales commission and $5 on a share. Now my portfolio looks completely different due to learning and leveraging through scaling. 

Here are some closing points when it comes to doing buffom (both) - paying down debt and investing: 

• Be flexible and focused. If that plan that you started off with ain’t working, change it up. Don’t think of it as giving up on your goals, think of it as calling a better plan. Be flexible with cutting debt and snatching stocks. Pandemics happen, pediments occur - “Be stubborn about your goals but flexible about your methods.” 

• Consolidate to stack and save. See if there are any ways to consolidate and carry that coint save or stock. Depending on how much debt you have and your strategy, this could look different than the person next to you. 

• Start small and scale tall. A step is a start when it comes to investing or paying down debt. The trek up the mountain might look high, but your focus has to be tough. I don’t want you to just be rich, I want you to be wealthy. Wealthy impacts generations, we on that. 

So, Beloved. You can do both at the same time. It is up to you to determine the how. Formulating your Bill, Build + Blow strategy - you are able to configure your debt, expenses, stacking (saving), investing and even play money! No percentage, just your numbers. When cracking down your numbers, you know what you are working with. If you find yourself in a deficit, you can see if you need to configure more or add more cash (streams of income). Understanding how to use your stacks to curate strategy is another way as well! What are your thoughts about paying down debt and investing at the same time? What is holding you back? Tell me below in the comments.

Source: Writer, A. (2019, December 05). Consumer Debt Statistics & Demographics in America. Retrieved July 24, 2020, from https://www.debt.org/faqs/americans-in-debt/demographics/