There’s a virus spreading around Personal Finance sites (and yes, at least 30% of the time, we’re one) – a virus which infects both blogs and writers alike. I’m talking, of course, about the obsession with debt-pay-down to the exclusion of all other notable personal finance topics. What? A Debt Payoff Virus? Is it realistic […]
How much would you pay annually in order to receive $1,000,000 today? This question is often a good measure of risk tolerance. For the purposes of this article, I am considering this the same as asking how much would you need in return annually if you paid $1,000,000 today. For me, it is around $50,000/year. […]
Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing on June 13th). I started […]
When most of us reach a certain point in our professional and personal finance journey, we start to experience lifestyle creep, the pressure to spend more. The causes could be social, financial or even boredom. After a certain minimum livelihood is met, each raise or goal accomplished allows us to potentially spend or save more. […]
You know we here at DQYDJ love to try to raise your hackles every once and a while, and there’s no surer way to offend a lot of people than talking about college. The last time we visited the land of student loans, we asked you if Arts and Psychology Majors should pay higher rates […]
Bells are ringing! I am finally worthless! With my paycheck today my net worth has finally passed the literal and psychological $0 barrier. My financial leverage given a net worth of $1 is about 45,000-to-1. Let this be a lesson to everybody: massively over-leveraged financial positions can only end positively. Look at Long-Term Capital Management, MF Global, Bear Stearns and AIG: their executives still managed to escape with millions of dollars!
Personal finance experts frequently tout the advantages of having a six month emergency fund, if not a more conservative twelve month fund. There are many reasons that a citizen would need to dip into their emergency savings: family illness, death, severe medical expenses, unplanned pregnancy or job loss to name a few. Many reports however, indicate that many (>25% or >50% depending on your definition) Americans still are not prepared for a downturn scenario.
Credit cards get a bad rap – one that is not entirely deserved. I’ve got this working theory that it has to do with their name – the term ‘credit’ may mean ‘ability to obtain resources based on a future payoff’, but the card is named entirely wrong: If the only purpose of your credit cards is to purchase things on credit you are doing things completely wrong. The true beauty of credit cards is that they are a liquidity tool; credit cards allow you constant access to funding… whenever you need it. So, let’s look at the perfect strategy for turning your credit cards into liquidity cards!
Tying to an article earlier that my colleague PKamp3 wrote, personal finance seems to have taken a dive in popularity in more recent years. As a writer for a confessedly self-aware personal finance crowd, this assertion may seem irrelevant, surprising, or, at worst, alarming. As a young college graduate, many of my fellow coworkers (as well as I) have student loans as one of their more significant financial obligations on top of car loans and (soon) mortgages. Some plan on paying down their student loans as fast as possible to deleverage themselves and then start saving for a home. I am of a different and not necessarily correct opinion: to hold onto the student loans for as long as possible due to their incredibly low interest rate and tax-deductibility for incomes up to $60,000 (partial deductions up to $75,000).