Summary List Placement
It’s no secret millennials carry a heavy debt load. As Business Insider’s Hillary Hoffower has reported, the generation is facing an affordability crisis fueled partly by increased living costs and student loans.
For its Master Your Money “Invest & Thrive Survey,” Business Insider and Insider Intelligence asked 2,020 millennials (defined as those age 21 to 38) about their investment behaviors. Among them, 41% of respondents said they were not investing.
The main reason they gave for staying out of the stock market had to do with income limitations, but debt was a close second.
Among non-investors, 22% said they weren’t investing because they had too much debt, the “Invest & Thrive Survey” found. More than a third said paying off debt would cause them to start.
Millennials on the whole are more focused on paying off credit-card and student-loan debt than building wealth through investing. Among a pool of 1,807 survey respondents with financial goals, 38% said their debt load was a main barrier to achieving their goals.
Taking on debt isn’t the worst financial decision you can make, but putting off other goals and priorities such as investing because of debt could cost you big. Sometimes taking on debt is necessary, but waiting to put your money to work until your account balance says zero could cut into years of wealth generation.
Strike a balance between debt payoff and investing
The first order of business for any borrower is making the minimum payment every month. Not doing so could wreck your credit and cause you to default on your loan.
Beyond that, one financial expert suggests a rule of thumb for deciding whether to put additional cash you have toward debt or into an investment account to …read more
Source:: Business Insider