284 | Debt Payoff Strategies: Is Selling Stocks Worth It to Pay Off Your 401k Loan?

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In this episode, we sit down with Budget Bestie Natalie, who’s navigating the tricky waters of paying off debt while managing investments. They discuss strategies for handling 401k loans, the pros and cons of selling stock to pay off debt, and the importance of sticking with long-term investments.

Key Points Discussed:

1. 401k Loan Payoff:

   • Natalie’s excitement about paying off her 401k loan by October.
   • The unexpected tax issues that delayed the payoff.

2. Investment Decisions:

   • Natalie’s work-provided stocks and whether to sell them to pay off debt.
   • The wisdom of keeping investments intact for long-term growth.
   • Shana shares a personal story about her grandfather’s Walt Disney stock.

3. Debt Payment Strategies:

   • Why using investments to pay off debt is usually not recommended.
   • The pitfalls of short-term fixes like 0% credit card transfers.
   • The importance of addressing the root causes of debt, such as spending habits and mindset.

4. Snowball vs. Avalanche Method:

   • Comparing debt repayment methods.
   • When to prioritize high-interest debt over larger payments like car loans.

5. Budget Adjustments:

   • Handling a negative monthly budget.
   • Balancing necessary savings with debt payments.
   • Practical tips for contacting creditors to negotiate lower interest rates.

6. Group Coaching Benefits:

   • Natalie’s positive experience with group coaching.
   • The value of a supportive, non-judgmental community.
   • How group coaching provides diverse perspectives and accountability.

Actionable Takeaways:

• Focus on keeping investments for long-term growth unless they’re underperforming significantly.
• Tackle high-interest debts first to minimize overall interest paid.
• Review and adjust your budget regularly to accommodate changing expenses, such as back-to-school costs.
• Consider group coaching for support, accountability, and diverse financial strategies.

4 Ways To Connect With Us:

1️⃣ FREE CALL: Book your FREE 20-Minute Financial Coaching Call now! Get personalized advice and start your financial journey ➡︎ https://www.budgetbesties.com/freecall 

2️⃣ FACEBOOK: Become part of our Supportive Facebook Group. Connect, share, and learn with others mastering their budget skills ➡︎ https://www.budgetbesties.com/facebook 

3️⃣ BUDGET: Grab our Signature Budget Template! It's your key to organizing and optimizing your finances effectively ➡︎ https://budgetbesties.com/budget 

4️⃣ COACHING: Ready to dive deep into your finances? Sign up for 1-on-1 or Group Financial Coaching. It’s the accountability and guidance you need to make real progress ➡︎ https://budgetbesties.com/coaching 

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