Should I invest or pay my debts?
<div class="user-question">What's more important to focus on? Debt or investing?</div>
Hi Frichies! Grace here 👋 I’m the Director of Strategy at Stackwell, an investing platform that makes building wealth more inclusive (not just for finance bros and their dads). But more importantly, I’m 26 years old, living in NYC, and navigating the same money questions as you - including this one. So let’s talk about it.
Ideally, it’s not either/or
What’s more important to focus on? Debt or investing? This is one of the most common questions I hear, and while the answer is a little different for everyone, here’s the truth: you can - and should - do both.
Lots of people treat these like opposing priorities, but they’re both part of building a healthy financial future. The key is understanding how they work - and how they work together.
The real cost of debt
There are different kinds of debt, but the one that can really mess with your financial wellness is high-interest debt, like credit cards.
Because of compound interest, even small credit card balances can grow quickly - that's why I automate my payments so I never miss one.
<div class="frich-tip">Frich tip: Not sure how much you should be paying each month? This Bankrate Credit Card Payoff Calculator can help you map it out in minutes.</div>
You might be able to lower your interest rate - just by asking. Seriously. A quick phone call could save you money. Here’s how:
Investing can change the game
The principle that makes debt grow - compound interest - is the same one that makes investing an opportunity worth exploring. Starting in your 20s can lead to 2x or 3x more wealth later.
Investing is one of the most powerful tools for building long-term wealth, and anyone can use it. You don’t need a finance degree or thousands of dollars.
Think you don’t have enough cash to invest? You can open a brokerage account with as little as $15. Set up small, automatic contributions - just like a Netflix subscription - and your money starts working for you over time.
<div class="frich-tip">Frich tip: Fundrise is a great option if you want to get into investing through a variety of diverse opportunities. Whether you want to test it out with your first $10 or you're strategizing your inheritance, Fundrise can tailor your portfolio accordingly.</div>
Want to see how much your money can grow? Check out a growth calculator like this Compound Interest Calculator from the SEC. At Stackwell, we have an in-app growth calculator that cuts out some of the guesswork.
Are you ready to start investing? Take this quiz
Take this 6-question quiz to find out where you are on your investing journey - and what to do next.
Mostly A’s: Confident Compounding Champ
You’re ready - and then some! You’ve got your foundation, you understand how investing works, and you’re probably already building wealth. Keep that momentum by exploring tax-advantaged accounts like a Roth IRA and diversifying your investments.
Mostly B’s: Dabbling Investor
You’re on the edge of something big. You know enough to be dangerous (in a good way!) and just need a little structure and consistency. Automate your investing and aim for small, regular contributions - even $25/month makes a difference.
Mostly C’s: Beginner with Big Dreams
You’re curious - and that’s a great start. You might not feel 100% confident yet, but you’re asking the right questions. Focus on learning the basics and building that first mini emergency fund. A high-yield savings account can be a smart place to start—check out our top HYSA picks to help your savings grow while staying accessible.
Mostly D’s: Not Yet, But Almost!
Right now, investing feels overwhelming - but don’t stress. Start with money basics, build a buffer, and learn as you go. The best time to invest was yesterday. The second-best time is today.
You Can (And Should) Do Both
You don’t have to wait until you’re debt-free to start investing - and honestly, you shouldn’t. Getting started early (even with just a little) helps you build habits and confidence that’ll pay off for the rest of your life.
I like to use a split strategy: I make my minimum payments, invest a small amount every month, and throw anything extra at my debt.
It’s not always perfect, but it works - and it keeps me moving forward on all fronts.
So…how do you actually get started?
Finding the right investing platform can feel overwhelming - I get it. For a lot of us, it feels like something you're supposed to already know how to do. But investing shouldn’t be confusing or intimidating. That’s where Stackwell comes in.
At Stackwell, we understand that getting started can bring up a lot of nerves - and that’s exactly why we exist. Our platform was designed to help you feel confident about investing, no matter your starting point. That’s what I work on every day.
You answer a few quick questions, add funds, and Stackwell builds a custom ETF portfolio based on your goals. We cut out the guesswork, and we’ll be there with tips and tools (like our in-app growth calculator) to help you grow.
We’re here to make sure you don’t have to figure it all out on your own. When you're ready, we're ready. Let's get started together.
