Originally Posted by Baraka_Guru

QFT.

After all, what's the point in earning even a solid 8% return on an investment when you're carrying debts that have an interest rate of more than double that at, say, 18%?

Paying down debts can be a better "investment" than stuffing cash into an investment vehicle. Nipping future interest expenses in the bud can save you a whack of cash.

Also, I agree that those ISA accounts are good for a reasonable interest rate while still having access to cash. The 3-to-6 month rule is a good one.

I'll just add as well: The sooner you get a mortgage and pay it off, the better. There isn't much better security than actually owning your own home. Look for a mortgage plan that allows for accelerated payments and lump sum deposits.

My 3:

1. Pay off debt. (Do this first. Very first.)
2. Set up RRSPs or 401K...maximize contributions each year. (Do this concurrently with #3, if you can.)
3. Get a mortgage on a house that's set to appreciate reasonably well...pay off the mortgage as fast as you can.

Next: Invest to your heart's content. Try value investing.