Should I Pay Off Debt or Invest? A Simple Framework for Deciding

Title: The "Pay Off Debt vs. Invest" Decision Flowchart

• Concept: A simple, visually engaging flowchart that helps users navigate the decision-making process. It offers a clear, step-by-step guide on what to do with extra money, making it easier to tackle this common financial dilemma. The flowchart is based on straightforward numerical rules.

• Flowchart Logic:

  1. START: Do you have extra cash this month?
  2. Step 1 (The Non-Negotiable): Does your employer offer a 401k/retirement plan match?
     • YES: Contribute exactly enough to get the full match. This is a 100% return on your money. Move to Step 2.
     • NO: Move to Step 2.
  3. Step 2 (High-Interest Emergency): Do you have high-interest debt (e.g., credit cards) with an interest rate over 8%?
     • YES: Pay this down aggressively. It's a guaranteed, high-rate return.
     • NO: Move to Step 3.
  4. Step 3 (The "It Depends" Zone): Look at your remaining debt (student loans, car loans). What is the interest rate?
     • If Rate is >6%: Prioritize paying extra on this debt. It's a safe, guaranteed return that beats most reliable market forecasts.
     • If Rate is <4%: Pay only the minimum. Prioritize investing the extra money in a tax-advantaged account, like maxing out a Roth IRA or increasing 401k contributions.
     • If Rate is between 4-6%: This is a personal choice based on your risk tolerance.
       • Pay Debt: You get a guaranteed 4-6% return and peace of mind.
       • Invest: You have the potential for higher returns (around 7-10% average), but it comes with market risk.

Target Audience:

• Primary Group: Young professionals and recent graduates (ages 22-35) who are starting their careers, have student loan debt, and are beginning to think about investing for the future. They are often active on social media and appreciate clear, actionable, and visual content.
• Secondary Group: Anyone with moderate-interest debt (like mortgages or car loans) and disposable income, who is struggling with the same "pay down vs. invest" decision. This broadens the audience to established individuals and households (ages 35-50).