It’s the burning question many have, but what is the best choice to make in 2020? Check out the video to find out!

00:00 the burning question
There is no one clean answer… I wish there was, it would have been if I could say… Yes or no… But it doesn’t work like that. It really depends on how much do you make right now, how much can you save up to pay off your debts first, and how much do you have left to invest your money… And of course, what your goals are… If you wish to make passive income, or generate a certain amount of money, by the age of ….

But ok, let’s go into more details.

01:00 invest or pay debts
In this video, I’ll use an example of one of my coaching clients, to make it slightly more tangible for you and me to explain.

01:48 what would john do?
John makes about 70k per year, he invests a part of his income, but he also has his debts from his education, car, credit card and mortgage.

03:05 the $1000 monthly investments
With the $1000 john is able to achieve high returns from his stock investments. Somewhere between 9% up to 17%, which is really not bad. But in the end… Why is he still struggling? Making money, to pay off money… Is still not nice… And not ideal..

05:35 the two choices you have
In financial education, you hear that you can’t start early enough with investing your money, and yet… We also teach that you shouldn’t have bad debts, at least get rid of those as soon as you can. And that’s the inner conflict we have… So should we invest our money first, and let that grow over time, and at the same time pay off debts… But in that case, I don’t have enough money to do this….

07:07 the two methods to be paying off debts
The snowball method is paying off the easiest and smallest debts first, to see easy and fast results.
Whereas the avalanche method is paying off the biggest and most expensive debts first, this will be harder, and takes longer in most cases, but the moment this is gone, you’ll have a huge pain lifted from your shoulders. And that’s why this will have most effect, but discipline is the hardest part here.

10:49 why investing in stocks is not everlasting
Stocks are a great way to make money, but it is not something that you can control and is reliable, when we talk about cashflow. I love stocks, but it is not something I would rely on, if I want to have monthly cashflow.

12:33 answering the burning question
Bad debts should be gotten rid off as soon as possible, and then start investing with the huge power you have. Have no obstacles on your way, when investing for your own future. Be sure to generate that passive income for your own future.

13:14 why this is a great choice!