Get Returns of 20% or More on Your Money

So, last week the stock market was tanking. In a big way. 200+ points or more.

Interesting.

If you have a credit card balance with interest at 20%, and pay it off with any extra cash you may have, you're getting a 20% return on your money. That's a heck of a lot better than the stock market average of anywhere between 7% and 11%, depending on which types of stocks or funds you own.

I'm not saying you shouldn't invest. There's no better return that contributing to your 401(k) or other plan that is tax-deferred up to the amount your employer matches.

For example, if your employer matches 50% up to 6% of your income, you're getting 100% return on 3% of your salary. I'd take that ROI (return on investment) any day. It would be foolish to not take advantage of such an offer. Restructure your budget so you can at least contribute up to the employer match.

But if you're already doing that, and still have money lying around in a 1-2% savings account somewhere...why would you forego paying down any debt with interest greater than what you're earning on your savings?

Just something to think about.