(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 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 […]
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 […]
Both my co-writer Cameron and I have recently penned screeds on a worrisome trend we’ve seen in Personal Finance blogs – the hyperbolic obsession with “Debt Zero”. “Debt Zero” is, of course, the idea that above all else Debt Must Be Paid Down.
The first clue that something is wrong with that story is the inclusion of the word “must”. There are very few absolutes in life – the snarky amongst you will acknowledge death and taxes – and in this situation is no different. You see, it’s naive to assume that things come for free. Every single thing you do is a trade off.