Funding Your Future (Building Your Financial Foundation 2/2)

In this video, you'll learn exactly how to set up your finances for the future! We cover what exactly ESI (early debt repayment, savings, and investing) means and how to accomplish your long term financial goals.

[@stevemurray3765]

Thanks for the video. Great advice

[@annablackmon5323]

Why wouldn't you repay debt on cards with less than 6% rate? Doesn't it still accrue over time?

[@tswanson17]

You do, you just pay it down more slowly and just pay the minimums. If you have $1000/mo of savings and your car payment is $300/mo with a 3% interest rate, instead of paying off your car loan faster at $1000/mo, you'd more likely be better off long term paying the minimum payment and investing the extra $700/mo which is likely to achieve an annual rate of growth (maybe 7%) which is much higher than the 3% interest. If your interest rate is higher like 9%, you want to pay that down as quickly as possible and it's a better use of your ESI resources than extra investing.
FYI, I'm a licensed financial advisor and agree with the vast majority of what these videos teach!

[@tramarthomas6105]

i think because the amount you make from investments out weight what you lose on the debt in the long run, but hes also saying not to ignore the minimal payment