I can be impatient at times and that is reflected in my financial decisions. I kind of messed up because I want to see big results in just a small period of time which at times or most of the times unrealistic. But lately, I realized that I cannot just do everything at the same time so I need to prioritize. This time it is my debt payment.
I have been wanting to eradicate my debt for the longest time now. This debt stifles me from going all out with my investment.
PAYING OFF DEBT
In the previous year, I already started my investment while paying off my debt. However, I feel that I am spreading myself too thin given my meager income. I am changing my strategy this year.Focus is necessary so I can see real progress financially. So I am focusing this time all my resources to eliminating my debt. Sadly, this means I have to hold off for the moment my investments.
MIND THE INTEREST RATE
My line of thinking before is that I will invest so that whatever gains I will get from my stock investments I will have to use it to pay for my outstanding debt. I thought that if i will get 20 percent gain from my invested funds, holding off debt payment is a win because the interest rate is only 10 percent for my debt. However, given the volatility of the market and the bearish sentiment of the market nowadays, I feel that it would be a wise move to just get rid of my debt entirely.
PEACE OF MIND
My decision to focus on debt elimination, is not much based on rationality or logic. This time, my motivation is simply emotional and psychological. I want to attain peace of mind knowing that whatever happens financially, my family will have roof over our heads.