Americans Are Drastically Affected By Student Loans
In fact, over 43 million Americans carry student loan debt.1 If you're of of those who are facing what seems like never-ending student loan payments, you aren't alone. You may even be wondering what you should be focusing on right now and thinking to yourself "Should I pay off my debt? Should I invest? What's the most beneficial move for me at this time in my life?"
You Can Do Both
The good news is, you can (and should) do both. The biggest thing that young adults run into is that they didn't start investing for their future soon enough (and the future is expensive). That's why it's important to start investing even while you are paying down your student loan debt.
Getting Started With Investing
Graphic is explained below.
Define Your Goals
Organize your finances to help manage your money more efficiently. Remember, investing is just one component of your overall financial plan. Get a clear picture of where you are today and where you hope to see yourself 5, 20, or 50 years down the road. We have a whole list of financial goals that Coastal can help you with here.
Understand The Impact Of Time
Take advantage of the power of compounding. Compounding is the earning of interest on interest, or the reinvestment of income. For instance, if you invest $1,000 and get a return of 8 percent, you will earn $80. By reinvesting the earnings and assuming the same rate of return, the following year you will earn $86.40 on your $1,080 investment. (This hypothetical example is intended as an illustration and does not reflect the performance of a specific investment).
Get Help From The Experts
Getting expert help in creating a financial plan that integrates long-term financial goals such as retirement with other, more short-term needs can be extremely helpful. Coastal's Wealth Management team, available through CFS*, can help you define your goals, track your progress, and help you get on the right financial track for your future with a free financial review.
Get My Free Financial Review
Review Your Progress
Financial management is an ongoing process. Once you take that first step of getting started, you will be better able to manage your money to pay for today's needs and pursue tomorrow's goals! Make sure to set monthly or quarterly check-ins to check your progress and see if there's any room for improvement.