I stopped contributing to my 401k recently bc we just got a lot of new bills, but that makes me really scared for the future. My guess is that I should pay down all my high interest debt and then resume contributions. Does anyone know if this approach makes sense? Thanks!

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Yes. Eliminate the compounding interest of debt. It’s counter intuitive to save money into a fund that’s barely growing over inflation or even 6% APR. Try looking into HYSA to offset some of debt interest and payback fast and try not to accumulate more debt but I know it can be easier said than done. (As a Former life insurance agent and Current Investor.)

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Thanks!

You’d have to do the math to know for sure, but I wouldn’t be shocked if paying off that high-interest debt saved more than putting away for your 401k as you normally were.

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Thanks!

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