"Oftentimes, people will immediately say, 'Well, I need to pay off loans.' And that’s good. … I understand that. Economists understand this. A loan is a debt, and many people like to get that debt down as far as they can," says Dr. Walden, a North Carolina Cooperative Extension specialist.

"But what you have to remember here is that there are at least two things you can do two things with any large sum of money," he says. "You can in fact pay down loans, if you have loans, like a mortgage. Or you can invest that money.

"And what economists would recommend is that you deploy your money to wherever you can get the highest rate of return," Walden adds. "Now what do I mean by this? Well, simply look at the interest rate you are being charged on your loan, and compare that to the interest rate you could earn by investing that money, and put your money wherever the interest rate is largest.

"So for example, if you had a mortgage that you are paying 5 percent on, but you can invest the money and earn 7 percent, you’d actually be better off taking your money and not paying down your mortgage but instead putting it toward that investment," Walden concludes. "So the rule of thumb is follow the money. Or more specifically, follow the interest rate. Go where the interest rate is highest."