(Read parts one and two in the emergency funds series) In the first two articles, I covered: How important it is to be cash flow positive How to cover very small shortfalls with credit How to cover truly large expenses with different forms of insurance. The most important large unplanned expenses that could potentially be […]
Emergency Funds are Overrated: Part Two of Three
In part one on Monday, I wrote about how credit cards can provide short-term liquidity where emergency funds would typically be recommended. In this article, I will write about how most “emergencies” people list as reasons for an emergency fund are not true emergencies and can be easily planned for (and anything that is above […]
Emergency Funds are Overrated: Part One of Three
Emergency funds are a controversial topic that have always irked the writers here at DQYDJ. Okay: overall, we think they are a decent idea… but the singular focus on obtaining one despite the (usually ignored) costs is the incorrect focus for most financial prioritization decisions. In this series, I will lay out three reasons why […]
It’s a Matter of Principle (Principal)
I try to run my personal finances like I would run a business: Use debt to leverage high ROE assets. Limit expenses and maximize revenues by exploring future potential revenue streams. This manifests itself in many ways in my life… and how I pay my bills. When a bill is due, I wait until the […]
Maintaining a Debt Paydown Strategy
My relationship with debt has been much different than the average American. I took out ~$65,000 in student debt to attend a private university and I have regretted this 0 times. I chose a major that I thoroughly enjoy and that has paid me sufficiently and I do not feel that I would have the […]
My Resolve About Resolutions
It’s the time of the year for New Year’s resolutions and an assessment of how 2013 went for myself. Financially, it was a good year for the market, with the S&P 500 returning ~31% with dividends. I did a little better in my 401k at 34% so I must say without a shadow of a […]
Keeping Up with the Joneses: Risk Tolerance
The idea of lifestyle creep is the slow build-up of “necessary” expenses as your income increases. I myself have experienced a bit of it in my career, noticing small purchases that I used to consider luxuries as being more commonplace. What I want to touch on in this article, however, is something I think is […]
How Many Mortgages Do You Purchase in a Lifetime?
In a recent post, I lamented the inefficiencies I saw in the mortgage process. Red tape, confusing questions, obscured data and dragging one’s feet is all-too-common in the loan origination business. My main question I sought to answer today is ‘Why?’ With a purchase so large and significant, I would hope that the market provided […]
Why Does Risk Aversion Differ?
One of my coworkers very recently moved to this state from across the country. In doing so, he had to pick up his family, sell his house and buy a new one all while working remotely, traveling back and forth and transitioning to a new area (and climate). We got to talking about real estate […]
Part 4 of Tales of a Mortgage: Thank You for Selling!
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 a few months ago on June […]