What comes first - Clearing the Debt OR building a Dividend pipeline
I want to start this post by saying "Thank you to all of you". Really grateful to be a part of this community 🙌. The ideas and recommendations that I got from here are invaluable and will definitely help me achieve my goal even faster than I planned.
Long-term Goal: Time Freedom - Generate Wealth Good enough to live the life as I want to like travelling the world, learning from different parts of the world about how things are working so well and trying to implement them in my country, helping others by contributing into society or by teaching.
Short-term Goals:
Become debt free by getting rid of all the existing loans
Create a really good Dividend-Pipeline to have a steady flow of passive income
I'll keep it short, having these 3 loans - Personal loan, Car loan & Home loan and at the same time dividends getting credited in account looks very lucrative (₹3K last year) and I often want to go for building the Dividend-Pipeline whenever there is some money in my hand.
Although, when I had a good conversation with Gemini, it suggested that I should clear the Debt first (except home loan) and then with all the money in hand should start accumulating the dividend paying assets along with part-payment of the home loan because of the interest rates on loans is higher.
My thought process was - if I have a dividend pipeline ready which let's say generating ₹30K/3 months then I can easily pay ₹10K EMI every month. Gemini's approach feels logical but having FOMO that for a few years I won't be able to accumulate anything if I follow it's suggestions.
I need your suggestions, as AI suggested this approach, what do you guys think.
P.S. Loans are not taken by me, my father took them and he pays the EMIs for them as of now. With last year's bonus I cleared my education loan and this year's bonus I cleared one of his personal loans. The remaining 3 are in his name but eventually he will retire and I will need to take care of these and he doesn't have a pension. He made me who I am today, behind my mind I feel that this is something I'm supposed to do and should take the stress away from him.
I'm sorry if this post is not totally related to community but I will surely appreciate your inputs on this situation of mine. Thanks in Advanced 🙌