Should I pay off debt faster or save more earlier? Money Not Math 89

The importance of liquidity, use and control of your money for unexpected life events and to take advantage of wealth creating opportunities.

Have you considered the difference between compounding and amortizing interest?

In this example 5% compounding over 182 months is about 35% more efficient than paying off a 5% debt faster. In fact, in this example we would only need a 2% return on our compounding money to be more efficient than paying off a 5% debt faster.

Paying off debt faster is better than spending more. But, saving more is often better than paying off debt faster.

YouTube video: https://youtu.be/5Dd451vp7Yo