conversation: User (qwertyuiop93856): "Okay guys and gals, I am looking for a little guidance on my current situation.  Starting with the basics, I have credit card, student loan, and other bills.  I am doing okay covering the bills, but I am a little uncertain on where I should be prioritizing any extra money.  I have little savings and zero retirement.  It feels crappy to say that, but better now than 20 years from now.  Should I be trying to pay off my credit cards, start an emergency fund, or putting money away for retirement?  I have one active card (0% for now, $1200 balance), and one closed account (18%, $800 balance).  My company offers zero benefits, so retirement would be an IRA.  Thanks everyone."
  Self: "1. Small emergency fund\n\n2. Pay off credit cards - never carry a balance.\n\n3. Med sized emergency fund.\n\n4. Pay off student loans \n\n5. Save/invest aggressively for retirement\n\n6. Have 3-6 months of expenses in a savings account."
  Williamisme (Williamisme): "I'd say this depends on the interest rate of the student loans - it may be wise to pay a bit less on student less while investing aggressively for retirement. if job security is an issue, get the full EF earlier."
  Landarchist (Landarchist): "But, the benefits to paying off student loans are known with certainty.\n\nThe stock market right now is erratic. The S&amp;P 500 is up almost 20% year-to-date. Can that continue? It certainly might. On the other hand next year could be a loss. Or the government could start up and then shut down again, or the Federal Reserve could alter its bond-buying policies. It's really hard to say.\n\nSome day we may return to a nineties-like economy in which the stock market reliably grows about 10% year after year. In the mean time, I would suggest people focus on finding stability (paying down debt) more than shooting for the Moon."
  brp (brp): "If you have that attitude, then you can continuously delay investing in retirement.\n\nAssuming OP is still young, they have time to bounce back from ups and downs and investing in retirement can definitely be the better choice in the long term if the student loan interest is low."
  Landarchist (Landarchist): "&gt; you can continuously delay investing in retirement.\n\nUm, no, that's not what I said. I said to pay off debts first. Once you have paid off your debts, then you would start investing in retirement.\n\n&gt;  if the student loan interest is low.\n\nHow low? The absolute lowest I have **ever** heard for anyone's student loans is 3.4%. Now after a 15% capital gains tax, you need 4% returns to achieve equivalent real results. But since the market is not guaranteed, you have to add the risk factor in there."
  Williamisme (Williamisme): "Then you're in for a shock: I have 20k at 2.62%\n\nGranted, I have another 30k at 5.62, but still. \n\nDid i blow your mind with the lowness?"
  Landarchist (Landarchist): "Yes, congratulations!"
  