alright should you save for retirement or should you pay off your debt there's
a little bit of a tricky question because it's not a one-size-fits-all
answer but in this video we're gonna share a few questions that most people
don't consider when they're actually thinking about whether they should pay
off their debt or save for retirement and one of these questions actually
makes it really easy to know which you should choose and it's good that you're
watching this video because if you don't ask yourselves these questions you can
actually find yourself in a lot of trouble where you actually don't reach
either goal so hang tight and we're gonna get started
if we haven't met my name is Bob Lotich I'm so glad you are here and on this
channel we give you tips and strategies that put more money in your pocket and
then we also talk about some of the timeless biblical principles on how to
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create new content so as we're going through these questions scroll down to
the comment section below and I would love to hear if you have any additional
comments I'll definitely be answering any questions you have and I'd love to
hear also what you ultimately decide whether you're gonna save for retirement
or you're gonna focus on paying off that debt we have lots of different videos
about paying up debt to off links to those down below as well but I think
it's time to get started so let's dive in
alright so in this lesson I want to talk just a little bit about pausing your
retirement savings in order to help you reach your debt goal faster and this is
something where you're going to have to find the right answer for yourself on
this because I can't tell you exactly what to do because it is going to depend
it's gonna depend on a variety of factors but I want to just kind of talk
a little bit about few of the different aspects of the decision so that
hopefully you can make the best one for you and your family so the first reason
to consider doing this is for the power of focus if you have a hundred dollars
that can go to retirement savings or it could go to paying off debt and then you
divide that in half and you have 50 going to each or 25 to one and 75 to the
other they're both good goals and there are both things that you want to reach
but there's tremendous power when you focus all that energy towards one
specific goal so not only we achieve the goal a lot faster but you'll be so much
more motivated the success will come quicker which will then in turn lead you
on to the next challenge which will probably be retirement savings or
whatever else and you'll be running into that with momentum full of energy so
just staying really really focused on one particular goal is a really powerful
way to attack that goal and I have found in my own life that anytime I really
focus and try to eliminate all the really good things and focus all my
energy on the one specific great thing in our case it's paying off debt it has
been really really helpful in motivating for me to do so alright next on a really
practical level if we're thinking specifically about interest rates and
you have a credit card that's charging you twelve fifteen plus percent the
chances of you earning that higher percentage in the retirement savings is
very very slim so in that case the debt it makes a whole lot more sense to get
that paid off it's strictly from a financial perspective then it does to
put that money into retirement savings okay so the option that I would want you
to consider is consider pausing your 401k for 403B retirement savings and
what that's going to do of course is free up this extra cash that we can then
funnel towards your debt and get this thing paid off as soon as possible if
you're contributing to a Roth IRA or regular IRA as well that is something
that would definitely consider doing flip into the other side one of the
things that you really strongly need to consider when doing this and to decide
if this is the right thing for you to do is you need to know yourself and you
need to know what type of person you are and how disciplined you are in how
meticulous you are and the reason I'm saying all this is because if you stop
contributing to your retirement savings you essentially you've created a really
good habit that is in place on autopilot for you with your retirement savings be
it a 401k or a automatic withdrawal to a Roth IRA whatever if you have that
system in place that's a really really good thing and that is a big challenge
for a lot of people to do just to create that system and so if that's something
that that was a big challenging step for you to actually make that happen then my
concern for you would be if you pause it are you going to start it back up again
after you get this debt paid off now I think and I hope that if you're someone
who has a determination to go through this course and take the necessary steps
to get your debt paid off that you are gonna have the willpower and
determination to get the retirement savings started back up again especially
when there's more money sitting around at that point to do so but I just want
to caution you with that if you are somebody who may not start it up again
and if you think that's something that you might fall into then I think you
should think long and hard about pausing these retirement savings because I would
hate for you to just pause the retirement savings and then just not do
that again for the next 20 years because of this one thing you did now I do think
that's very unlikely if like I said if you're the type of person who is going
through a course like this and taking action and doing it but I think it's
something worth bringing up the other thing that's worth considering is your
401k or 403b if you're getting an employer match where you know you're
putting in 1% of your income and then they're putting in 1% that's a pretty
good return on your money and so I think that could be debated either way whether
or not you should pause that because essentially you know you're putting in a
dollar in your earning a dollar and so that's a pretty good return that's a
whole lot better than you're going to get from paying off your debt now I
think the thing that we mentioned at the beginning about focus still applies and
having all that energy focus on your one goal is a really
really helpful thing but definitely another thing to consider when making
this decision alright thanks for watching if you do have any questions
definitely leave them down on the comments below and I will get back to
you as soon as I can and if you enjoyed this video we'd love it if you give us a
thumbs up but that is all we have for today so have a great rest of your day
and I'll see you in the next video