The Best High Return Investments: Your Paycheck and No Debt

The Best High Return Investments: Your Paycheck and No Debt

Keep More of Your Money


The best high return investments: your paycheck and no debt. There’s no comparison.

The moment you become debt-free is the moment that your income becomes the most powerful it can be for your paycheck.

Only then are you free to realize the maximum potential return rate on any investment.

Think on this: while SOMEONE ELSE is in control of a part or most of your income — because you’re giving them the privilege of carrying your debts — you have NO or very little ability to make anything on the little bit of money that YOU DO control.

So many of us are more concerned about making the highest percentage interest return on the money that we invest rather than understanding how much of our earning power we give away because we’re in debt.

We become enamored with the idea that we would make so much more money, if only …

If only we had a higher return of investment. But we have a large degrading factor to our income that totally negates this thinking!  Hear me out …

Is 12% higher than 10%?  Of course!  When doing the actual math, earning 12% over earning 10% over the same period of time gives a higher yield, obviously.

But, let’s calculate how much of the difference between earning 12% and 10% is THROWN AWAY because of your debt.


Need Proof?

Here we go! I have done some of the possibilities below with a simple investment.

The scenario: you have $1000 of extra money every month to invest.  The first picture is of you making the maximum return amount in our scenario.

1000 Invested per Month at 12 percent Over 10 years


1000 at 12 percent over 10 years


$235,855 saved over 10 years. Good money for your future and for rainy days!


1000 Invested per Month at 10 percent Over 10 years


1000 at 10 percent over 10 years


Ok. You only received around 10% earnings over that time.  So you have $210,374 saved. Not bad! The difference between saving rates means that you would have $25,481 less over that same 10 years.

Now let’s say that you have a $200 car payment each month. So your amount available to save each month is now $800. Let’s look at the same 12 percent return:

800 Invested per Month at 12 percent Over 10 years


800 at 12 percent over 10 years


So you’ve saved $188,684 over that period of time. Pretty good!  But that’s a total of $47,181 less that you’d saved if you would have invested $1000 per month instead of $800.


The Cost

That car payment cost you an additional $47,181 over 10 years in potential interest earnings (you also lost money making a $200 per month car payment, $24,000.).

That’s assuming that the car loan was at 0% interest. You can see the cost of lost savings would be higher with a higher car loan rate.

(I know what you’re thinking right here. “You gotta have a car.” Yep, you’re right. But there’s a better way to go about this. It’s called ‘always have a paid off car’ and ‘save money in advance for car repairs’!) 

The cost of the car payment over that period of time is more than the 2% return interest difference.

To the tune of $21,700.

Why not consider saving and paying cash for your next car instead?


Take Control of Your Money

Why not take control of your money?  You’ve just seen how much of an impact a single car payment has on how much you’re able to save.  And the value of increasing your earning potential each month (your ability to save, spend or give more of your paycheck each month) will completely alter your life.

This is just the tip of the iceberg. When you extend the above scenarios to include the amounts you’re required to pay each month for the credit card debts you have, you can begin to see just how your earning potential is degraded by carrying that debt.

Now visualize how much more money you’ll command by paying off your school loans, too.

Get rid of all debt today!

When you begin to realize the impact on the power of your paycheck (article here at this site) to make purchases each month on credit, you’ll begin to see how carrying debt is like being a slave to money.

Spend your cash-on-hand instead and you’ll spend even less.

Why not increase the power of your income so you can spend and save and give exactly like you want to? Why not be the master of your money instead of it being the master of you?


How Can I Take Control of My Money?

Take control of your money by deciding that you’ve had enough (article here at this site). When you’ve gotten to that point, make the decision you’re going to get out of debt, once-and-for-all-time.

Very soon, you’ll begin living life as you see fit. You’ll learn to save, to spend and to give according to how you know it’s good for you and for your family.

The decision comes first. You have to own it because you can’t wander out of debt, just like you probably didn’t wander into debt.


How Can I Get Out of Debt?

First step: save a $1000 emergency fund. This is going to ensure that you’re covered when the car breaks down while you get out of debt. Next, make a budget and list all of your food, housing and health expenses. These are the non-negotiables.

The rest of your available money is going to be used to attack your debt.

It’s called the Debt Snowball.  This is the method you use to get rid of all of your debt once and for all time.  The reason it works is because you get real excited because you start seeing real progress.  You start seeing the light at the end of the tunnel and get fired up for your life after debt. This is going to change you and your family tree. You can do this!

The plan is to eliminate the debt at the top of your list and only pay the minimum amounts on the rest of them.  When I say ‘eliminate the debt at the top of your list’, I mean annihilate that debt. Pay it all off as quickly as you possibly can with as much vengeance as you can muster!!

List all of your debts smallest to largest amount, with the smallest at the top of your list. Yes, pay off the smallest debt that you have. It may seem like it’s mathematically smarter to pay off the larger amounts first, but it NOT.

Debt isn’t a math problem, it’s a behavioral problem. So it takes a behavioral solution to solve the puzzle.

When you pay off that small debt, take the amount that you’re no longer paying on that debt and add it to the minimum that you’re paying on the next debt on the list. Pay it off today!!

Do whatever you can to attack your debt list in this manner and before long, you are going to find yourself in a much better position to save, spend and give.



More Info

Find Financial Peace University. The small cost of this program is going to be the best investment you’ve ever made in your life.

I know, because I am a Financial Peace University graduate. I am debt free except the remaining mortgage on my house! And that debt won’t be around for very long, either!!

Join me! I’m debt-free.  It’s hard to explain the power you feel when you don’t owe a dime to anyone. The best high return investments come from your paycheck free and clear with no debt.

Find out more about this road to financial peace by reading my review on Financial Peace University (article here at this site).

I am not an affiliate of Ramsey Solutions and Financial Peace University, and receive no commissions from any of the links anywhere on my site that take you to his site. But I am very proud of being an FPU graduate, and I hope that I have shown you the importance of being debt-free. If this has been helpful to you, please visit my Wealthy Affiliate links to the right and below.



If a part of your financial dreams include having your own home business, consider joining me at Wealthy Affiliate (my full review at this site).

You’ll find much freedom and that WA is very real. You can use WA as a launching pad for website and affiliate marketing or for your own products and services.

No gimmicks, no upsells. Just pure education and fulfillment.


Join me at Wealthy Affiliate for $0 Now!



Steve Cass at createwealthonline.comAbout Steve. 

A working guitarist, guitar designer, songwriter, worship leader and online entrepreneur, I have discovered that the key to online success (and success is more than money) is simply to focus on helping people be successful.


Spread the word. Share this post!

Leave Comment

Your email address will not be published. Required fields are marked *