Deciding whether to pay off debt or prioritize saving for retirement is a common financial dilemma, and the right choice often depends on your individual circumstances. Experts generally recommend a balanced approach, focusing on both goals simultaneously whenever possible. High-interest debt, such as credit cards, should typically be paid off first because the interest costs can quickly outpace the returns you might earn from investments. On the other hand, contributing to retirement savings early allows your money to grow through compound interest, which can make a significant difference over time. If your employer offers a 401(k) match, it’s wise to contribute at least enough to take full advantage of that “free money.” Ultimately, the decision comes down to factors like the type of debt you have, the interest rates, how close you are to retirement, and your overall financial stability. Consulting a financial advisor can help you create a strategy tailored to your needs, ensuring that you're making the most of your money while building a secure future for yourself.
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