I made the mistake of carrying credit card balances while also trying to invest. The returns on my investments never came close to the interest I was paying. Once I focused on becoming debt free, my finances improved much faster. Today I sleep much better knowing I don't owe anyone money.

I didn't feel financially secure until I had about six months of living expenses saved. Once I reached that point, unexpected expenses stopped feeling like emergencies. It reduced stress more than any pay raise I've ever received.

I paid off my mortgage early and don't regret it at all. Some people argue I could have earned more investing the money, but being debt free gave me peace of mind. For me, the emotional benefit was worth more than maximizing every dollar.