Pay This Before Investing #smartmoneymoves #FinancialLiteracy

Should you pay off debt or invest? Here's how to think about it.

It comes down to the numbers. If your debt is sitting at 17% (buy now pay later and car loans), that's higher than what the share market returns on average. Pay that off first.

But if your debt is low, like a 4-5% HECS debt, you might be better off investing and chasing that 9-10% long term return. The gap works in your favour.

And then there's the mindset piece. Some people have a small amount of low rate debt and it still weighs on them. That matters too. There's no one size fits all, it's about what makes sense for your situation and what lets you sleep at night.

General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).