Why You Don’t Need to Be Debt-Free to Start Investing

Introduction: Debt and Investing

The myth that you must be debt-free to invest ignores opportunity costs, per Forbes. In 2025, with low-interest debt, investing alongside payoff can build wealth. This guide explains why and how Onu’s AI balances both.

With Onu, invest while managing debt.

Why the Myth Persists

Reasons, per NerdWallet:

• Risk Aversion: Fear of market loss with debt.
• Simplistic Advice: Debt-free first is easy but not optimal.
• High-Interest Debt: >7% debt should be prioritized.

Example: 4% student loan vs 7% stock return favors investing.

Debt vs Investing Scenarios

Comparison, per Bankrate:

Insight: Low-rate debt allows investing.

Step-by-Step: Investing With Debt

30-day plan to balance:

1. Audit Debt (Days 1–5): List rates with Onu. Example: 4% loan.
2. Compare Returns (Days 6–10): Onu simulates. Example: 7% stock vs 4% debt.
3. Minimum Payments (Days 11–15): Pay debt mins. Example: $100/month.
4. Start Investing (Days 16–20): $100/month. Example: IRA.
5. Track (Days 21–25): Onu monitors. Example: $200 growth.
6. Review (Days 26–30): Adjust. Example: Increase invest.

Real-Life Example: Investing With Debt

Meet Sarah, $20,000 student debt at 4%:

• Audit: Low-rate debt.
• Compare: Onu showed 7% returns.
• Payments: Minimum on debt.
• Invest: $200/month in stocks.
• Track: Grew $2,400/year.

Result: Built wealth while paying debt.

Financial Impact of Investing With Debt

Benefits:

• Growth: $200/month at 7% grows $2,600/year.
• Net Gain: Outpaces low debt interest.

Example: $5,000 invested saves $350/year vs debt interest.

Context: Investing in 2025

Trends from Forbes:

• Balance: Invest with low debt.
• AI: Tools like Onu optimize.

Example: Roth IRA with debt.

Final Thoughts

You don’t need to be debt-free to invest. Onu’s AI balances both. Start today for growth.

Sources: Forbes (2025), NerdWallet (2024), Bankrate (2024). This article is for informational purposes only and not financial, legal, or tax advice.