Episode #18
The Dose Episode 18 – Income Allocation: Saving vs Paying Down Debt
March 12, 2019
In this episode we talk about one of the most common questions I hear from optometrists: should I pay down debt or should I be saving for retirement? While every person’s situation is different, it’s important to understand the one theme and idea that’s constant in that equation: the time value of money and compounding interest.
During the show, I’ll discuss:
- How compounding interest works, using a snowman as an analogy
- A hypothetical example showing the real cost of waiting
- The max number of years you should take to pay off student loans while not saving for retirement
- The order and type of accounts you should consider when you start saving
- The power of habits and how to start small
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