Quote:
Originally Posted by takeallmymoney
Age: 33 (single/no kids)
Income: $15 hr + overtime (work in manufacturing; lots of 50-60 hour weeks so income varies).
Location: USA
Monthly Expenses: $1600
401K plan: 23K
Cash in savings/checking account: 19K
Risk Tolerance: YOLO
Student Loan debt: 37K (didn't graduate)
My current thinking is just to keep trying to save money, wait for a bear market, and ship it. I know most would probably advise me to focus on wiping out my debt first but, due to my lower earning power, I'd rather not be penniless when the bull market ends and have to wait another potential decade of grinding a low wage job until i get another chance.
Any input is appreciated.
Use your cash to take advantage of variances in interest rates
For example; if you can borrow at 5 percent but invest at 10 percent you make money by investing borrowed money
Applying that concept for yourself since you have some cash but low earning power, probably paying off higher interest loans is more profitable than investing and crossing your fingers (assuming you're not market savvy).
If you aren't afraid of more effort, anticipate a payoff amount and determine if a fixed income or otherwise safe investment discounts to present at a lower cost than a future payment of your loans. If so, that option may save you some wealth.
A combination of the two ideas may help avoid a cash shortfall should you need money and don't have borrowing power.
Hope this helps or even makes sense. I'm typing on a phone and it sucks.