Hey Tiffany, I've finished paying off my credit cards and now working on my student loan debt, $100K. I have a small savings for emergencies, but no investments. Do you think I should continue to wait on investing until my student loan debt is paid off?

Hi "I Want to Invest",
It depends. If you're investing for the sake of retirement, DO NOT WAIT! Saving & investing for retirement should happen no matter what.
Here's what I would do,
1) Do a happy-dance.... You finished paying off your credit cards. Yay! :)
2) Auto-save for emergencies in an online-only account like Ally Bank. Your emergency fund should be slightly out of reach. Online only accounts take 2-5 business days to transfer money back to your regular account. This will eliminate impulse buying.
3) Decide how much emergency money you need. 3-months to 2-years depending on the industry you're in and how long you think it would take you to replace your income should you lose your job.
4) Once your emergency account is fully funded. Divert the money you were auto saving to that account to an investment account.
5) Continue to pay for your student loans. Remember, as long as the interest you earn while investing is greater than the interest rate of your loans, you're making money. Since most student loan interests are fairly low, investing at the same time should still make financial sense.
Hope this helps.
Live richer,
The Budgetnista
www.livericherchallenge.com

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