Pay off Debt or Invest??

[lindsayk]

Hey all!
Looking for some advice/wisdom....Im single and 33. Right now im more concerned/wanting to be FI then RE. I want the freedom to not be tied to a certain job/pay just to pay the bills and have health insurance. I have about $15,000 in debt and only $1000 in savings. I do have about $2000 in a Simple IRA that I have not been adding to as I started focusing on just paying off debt and keeping minimal savings. Trying to keep it simple and get debt free first, build up a couple months worth of savings and then start piling cash in "retirement" accounts. Am I thinking of this the wrong way? I just want out of this particular job as soon as possible and having no debt and savings would give me breathing room to find something else without the worry of needing a certain pay/benefits. Advice please! Thank You!

[FIPurpose]

It sounds like you've already made up your mind on what to do. Without knowing more details about the debt though, I don't think there's anyway to tell you which method is better.

[Cwadda]

Hi there, I suggest you make a case study topic.  (http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/)

[RobFIRE]

A detailed case study could be worth doing.

Typically, first priority is an emergency fund to cover say 3 months' minimum expenses. Second priority to pay down any debt, unless it is a low-rate long-term mortgage or student loan. Reason being interest rate on credit card/car loan debit is normally higher than average investment returns, and the debt interest saving is a guaranteed return. Only then is it normally worth thinking about investing.

[lordmetroid]

Depends on what kind of debt it is. I do not own any credit card debt but I happily have a mortgage and a leveraged portfolio. As long as I can pay off the interest with my paycheck I gladly invest everything else.

[lindsayk]

Thanks guys! I just posted a detailed case study!