The decision to pay down debt or invest is a personal one. It depends on a lot of factors such as risk tolerance, your number of income streams, liquidity needs, family expenses, job security, investing acumen, retirement age, inflation forecasts, and bullishness about your future in general. I’ve had hundreds of people ask me whether to […]
Pay Down Debt Or Invest? Implement FS DAIR Read More »
After publishing my post on actions to take in a rising LIBOR environment, it dawned on me that besides refinancing your adjustable rate mortgage, you should also consider refinancing your student loans as well, if you have any. It feels like a lifetime ago, but I used to have ~$40,000 in business school loans that
How Student Loan Forgiveness Can Cost You A Fortune Read More »
Let’s look at the best strategies to get out of debt. Once you get out of debt, you will likely become happier because you will feel less financial burden. I graduated from business school in 2006 with roughly $55,000 in student loans. Although $55,000 is a lot to pay off, I was already a “debt
The Best Strategies To Get Out Of Debt And Become Happier In The Process Read More »
The best way to measure your financial security is by calculating your debt-to-cash ratio. Having a lot of debt lowers your financial security. Whereas having a lot of cash increases your financial security. The lower your debt-to-cash ratio, the strong your financial security and vice versa. Using debt to buy a house that is appreciating
Measure Your Financial Security By Calculating Your Debt-To-Cash Ratio Read More »
The NY Fed, Federal Reserve, Bureau of Economic Analysis, and Morgan Stanley put out a series of fascinating household debt charts we should all be aware of. The charts show the household debt composition mix over time. Excessive debt is what makes extremely rich people go broke. Leverage is what crushed the economy once the
Household Debt Composition Mix Over Time: Student Loans Way Up Read More »
Ranking The Best Passive Income Investments helps you strategize on developing retirement income. Over the years, the rankings have changed because economic situations have changed. In this post, I’ll be ranking debt types from worst to best. When used appropriately, debt can help provide for a better life and make us wealthier. When used inappropriately, however, debt
Ranking Debt Types From Worst To Best Read More »
Here are some sad stories about lending money and not getting paid back. In general, I am against lending money to people you care about. These include lending money to friends and family. Don’t do it unless it’s a life or death situation. Give the money instead. Lending money to friends, family, and strangers is
Sad Stories About Lending Money And Not Getting Paid Back Read More »
In order to achieve financial independence, you must properly manage your debt. Here is a debt optimization framework to help you do just that. But first, let’s discuss why we get into debt. Why We Get Into Debt Most of us get into debt because we WANT something we cannot afford. Instead of sending our
Debt Optimization Framework For Financial Independence Read More »
Congrats on being a homeowner! Real estate is one of my favorite asset classes. Over the past 20 years I’ve owned seven properties and have done multiple mortgage refinances. There are several mortgage refinance strategies and points I’ve learned along the way that have enabled me to save significantly. I hope my mortgage refinance strategies
Mortgage Refinance Strategies And Points You Should Understand Read More »
In America, debt welchers are admired, and that’s a problem. Let me explain how adopting an attitude of not paying back your debt will lead you to less wealth and more unhappiness. I’ve always grown up believing that taking on too much debt is a bad thing. What’s even worse is taking on debt and not
Why Debt Welchers Are Admired: Hypocrisy At Its Finest Read More »
