End of an Era (Part 1 of 4 on my move to San Francisco)

I recently moved from the Dallas area to the Bay Area. The first thing I miss is the cost of living. The second thing I miss is the food. Dallas Fort-Worth has Mexican, cajun and good barbecue. But, thankfully, the summers here are much more bearable. It's been 61 and sunny all day everyday for the past few weeks. There's a drought going … [Read more...]

If You Prioritize Stability, Don’t Prioritize Stocks

We haven't written about Chinese markets since our epic post comparing social and political reactions to the market fall in China and recent American market falls. Safety, Risk, and the Risk of Not Having Enough At issue (or reminding us of the issue), an interesting quote in a New York Times article way back from July 6th, entitled "Chinese … [Read more...]

Don’t Overthink Your Financial Statistics

The real life equivalent of "my ears are burning" for a writer online is seeing large influxes of people from a new site in our Analytics panels.  We like to check the context of our larger links - and this article is directed at a number of new visitors over the last month or so, as our Net Worth Percentile by Age and Income Percentile By Age … [Read more...]

When Having an Emergency Fund is the Right Move – Or, At Least, Not Counterproductive

We've got a bit of a hangup with emergency funds on this site - we feel that the advice to immediately save 6 months of living expenses in a low-interest high liquidity savings account isn't the best course of action for everyone trying to reduce their debt. In fact, the demand is counterproductive, in many cases.  Savings accounts pay maybe a … [Read more...]

Geographic Arbitrage

As I mentioned in previous articles, I have moved from Texas to California. With this move came a significant increase in both salary and cost of living. This has led to my savings rate decreasing but my overall dollar savings level staying relatively the same. I wanted to explore the pros and cons of working in a high vs. a low cost of living area … [Read more...]

Why Getting an Emergency Fund While in Debt Ignores the Real Emergency

Let's not bury the lede on this one: in any actual emergency situation I can imagine (short of losing my credit cards) my first move is to... pay for it with my credit cards. My opening sentence was way too verbose, but you know I can't stop a blog post there.  Let me go over the reasons why my emergency fund philosophy has evolved to my current … [Read more...]

Taming Your Spending Per Decade

My cowriter and I briefly discussed (verbally, not through some sort of electronic medium) how spending can be roughly modeled by looking at it from different perspectives - one of the key ones being "how old you are".  Even though many pieces of advice are specific, it's the concepts which can be applied elsewhere - a 30 year old buying a house is … [Read more...]

Income by Age: How Income Changes and Increases Over a Career

Ever wonder how income changes over the course of a career? Wondered how a new worker's salary will look after working a few years - or an entire career? Sure you have - we surely did, and we can tell you that articles like our net worth by age and income by age calculators (actually, the savings rate by age one too) get more than a fair share … [Read more...]

What Type of Investors Perform Best?

Yep, it's kind of a trick question. According to an internal study at Fidelity, and reported on second hand during Bloomberg Radio's Masters in Business podcast, a hilarious answer was given by guest James O’Shaughnessy: the best performing accounts held at Fidelity were the ones held by people who forgot they had an account. Think about … [Read more...]

Mortgage Rates versus Inflation Expectations

On Monday, we discussed how to quickly determine the rough inflation expectations in the general market, at least when it comes to CPI.  We also linked you a calculator we built which calculates inflation expectations over various timeframes. All that is well and good - but what can you actually do with that information? Therein lies the … [Read more...]