How Much Did You Save in 2014? (Part 2)

With my colleague PK writing about his 2014 savings rate, I thought that I would chime in as well. Using a loose definition of savings, where principal pay down of debt is included in the numerator, I have an after-tax savings rate of 53.42%. Without including principal paydown of debt, my strict savings rate would be 31.76%. A Note on … [Read more...]

Prize-Linked Savings

One of the major plights for low-income citizens of the U.S. is the state lottery. The poor are more likely to play the lottery and this portion of society is known for their very low savings rates, due to most of their income being taken up by mandatory spending. Recently (well, in 2009) there has been an innovation in encouraging those with the … [Read more...]

Pay Down Debt or Invest the Cash?

Over much of the internet, it is encouraged to pay down your high interest debt before investing in a Roth IRA or putting money into a 401(k) above the employer match. The difficulty has always been in defining what, exactly, high interest means. The true break-even solution is when the returns you make on your investment is equal to the … [Read more...]

First Month Living Without a Car

Recently, I moved to San Francisco and as part of the move I decided to sell my vehicle and live car-less. I felt (and feel) that I could get most of my transportation around the city done with bicycle or public transportation. So long as I can get to/from work and to/from a grocery store, then I should be fine. I’d like to report in on my progress … [Read more...]

Payday Lending and its Economics

Spurred by a recent article, I wanted to touch on a particular industry that we have discussed previously here at DQYDJ: payday lending. Traditionally, this industry (estimated $46 BB sizing from the article) has skirted some of the other unsecured lending regulations (like credit cards) by restructuring the terms of the agreement to not … [Read more...]

Financial Goals for 2015

Early last year, I prepared goals for 2014. In September, in a shift of plans I decided to abandon my goal of paying off all my consumer debt and instead focused exclusively on maxing out my 401k. To review my goals for 2014: Pay off consumer debt of $35,741.09 I was able to pay this down to $16,508.47 before pivoting in September to maximize … [Read more...]

I Quit My Day Job – If You’re Going to San Francisco (Part 2 of 3)

  I haven’t yet decided if I should wear flowers in my hair. Over the past three and a half year, I have lived in the Dallas-Fort Worth Metroplex. I have mixed feelings about leaving and mixed feelings about the area in general and am excited to see what a new area has to offer. First, the pros of Dallas: the food and the low cost … [Read more...]

My Retirement Asset Allocation

Over the Thanksgiving weekend, I decided to play around with Morning Star's X-Ray tool. The tool takes your entire portfolio and analyzes the asset allocation by geography, by risk level, by asset class as well as by type (growth vs. value, etc.). Here is what my current asset allocation across my portfolio is (asset type): 39% Domestic … [Read more...]

I Quit My Day Job – Drinking from a Fire Hydrant (Part 1 of 3)

“Getting information off the Internet is like taking a drink from a fire hydrant.” – Mitchell Kapor This post is going to be the first part of a three-parter about a fresh change for one-third of the writers at Don’t Quit Your Day Job.... Since my colleague PK and I founded this website back in April of 2009, we have been gainfully employed (or … [Read more...]

September 2014 Goal Assessment

At the end of last year, I stated that I wanted to pay down ~$34,000 in consumer debt (outside of my mortgage). I am writing today to report on both a level of success and a switch in strategy. How am I faring? In short: decently. I am not currently on track to hit my $34,000 this year. As of today, September 17th, I have ~$16,000 left to go. … [Read more...]