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There are a number of reasons why this might be the killing blow you need to destroy your debt faster.

Kill Your Debt Faster with the Death by a Thousand Cuts Technique

Sometimes I take for granted that everyone knows basic tenets of finance. Like how the IRS will never ever call you, or how money depreciates due to inflation. Or even how Harriet Tubman should absolutely replace Andrew Jackson on the twenty dollar bill.

But every once in a while one of our darling readers (who are the salt of the Earth, but like, fancy Himalayan pink sea salt with grains of dried truffles mixed in) will remind me why we need to focus on basic financial literacy. It is, after all, our sacred mission, bestowed upon us by the goddess of internet memes!

Thanks to a conversation I recently had with some of our young Zoomer/Zennial readers on the sosh’ meeds’, today I’m going to focus on a frighteningly simple tactic for paying off debt. For once it’s understood, it could save you metric buttloads of money on interest, help you pay off your debt faster, and bring about world peace.

You’re heckin’ welcome, world.

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We get many letters from 18 year olds like "I submitted 9 applications and no one will give me a credit card!" Here's the reason for that.

A Hand-Holding Guide to Getting Your First Credit Card

I got my first credit card at age eighteen. I was a high school senior, I’d just been accepted into college, and the world was my goddamn oyster (just slightly less like salty snot). The year was 2005… and getting that shiny little piece of plastic was just about as easy as putting out my hand and asking for it.

Times have changed. We now live in a post-2008 Recession world, and getting your first credit card has become markedly harder. This is probably why we constantly receive questions from eighteen-year-olds like “I’ve submitted nine applications and no one will give me a credit card. What do???”

The Ramseyan debt purists will say “Do without it, you fool!” But we believe a credit card can be an extremely useful weapon in your financial arsenal. Just look at what happened when Kitty and her boyfriend tried to rent an apartment together and couldn’t because he had no credit!

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Yeah, it's stupid to try to time the market.

Hurricane Debt Weakens to Tropical Storm Debt, but Experts Warn It’s Still Debt

It’s been over a year since the last time I gave an update on the state of my own debt. Since we’re always dispensing our opinions from our seat on the divine acropolis at the crest of Mount Olympus, we like to be transparent about our own situations. So let’s check in!

As we’ve chronicled, Piggy and I paid off our student loans ahead of time. And we don’t have credit card debt, unless it’s part of a nefarious-but-prudent scheme to harvest points. When talking about my financial sitch, I love to describe myself as “debt free, except for my mortgage!”

Which, when you think about it, is kinda weird? Like describing a milkshake as “dairy free, except for the milk!” The milk is not a small or trivial part of a milkshake. It is eponymous! It’s basically the point of the thing!

And the mortgage is a big debt. The average American family has $16,000 in credit card debt (yikes). An average student’s educational loan debt is $34,000 (double yikes). But the median home price blows both those numbers out of the water at $227,000.

For most people, a house is the most expensive thing they’ll ever buy, and the largest source of debt. It’s the milk in the milkshake.

And if you were about to jump to the comments to erroneously claim that ice cream is the point of a milkshake, hold ya fakkin’ hahses, khed. I live in New England. Our milkshakes do not have ice cream. If there’s ice cream in it, it’s called a frappe.

I can’t tell you why. I don’t make the rules, I just abide by them.

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Another recession is coming.

Ask the Bitches: How Do I Prepare for a Recession?

We’ve gotten a lot of questions recently about a hypothetical looming recession. The stock market has taken a bruising; bellwether companies are stumbling. Do such omens and portents mean that another recession on its way?

The good news is, we can answer this one very easily.

Yes. Another recession is coming.

We know this with 100% certainty.

How?

The same way we know with 100% certainty that Piggy and I will be dead within the next hundred years. It is in the nature of a living being to die, just as it is in the nature of economies to grow and contract. The sun rises; the sun falls. The tides go in; the tides go out. It’s just the way things are.

Sounds kinda shitty, right? It’s possible that, someday far in the future, someone will devise some new system that will smooth out or even eliminate these cycles. Maybe the nature of goods and services will change so fundamentally that economies will transform in ways we can’t even imagine. But that’s Phillip K. Dick stuff—innovations that live so far in a hypothetical future that they’re still science fiction. You should plan to endure these market cycles throughout your lifetime.

And yes, there are lots of things you can do to make yourself more prepared. Let’s go through them.

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Investing has the reputation of being mysterious and intimidating. It’s something for older, more worldly, bebuttsticked captains of industry, not lowly millennials trying to make their way in a hostile economy. But like the president's reputation as a deal maker, this characterization is a complete myth.

Investing Deathmatch: Paying off Debt vs. Investing in the Stock Market

LET’S GET READY TO RUMBLLLLLLLLE!

It’s time for another thrilling episode of Investing Deathmatch, in which two forms of investing enter the ring, and only one leaves victorious. Or, more accurately, we decide that investing is a far more complicated affair than wrestling and the outcome of the fight depends on a number of nuanced factors.

But I digress.

TO THE BLOOD SPORT!

This fight has a long and sordid history. We’ll be uncovering old wounds, dredging up arguments long held in stalemate. We’ll be discussing a topic about which every damn personal finance blogger on the Internet has a very firm opinion. And we’ll be demystifying an age-old enigma of financial independence.

Brawlers, take your corners.

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I've tried making debt visualizations to help me stay on track. I'm going to share two with you today, including one that is fucked up and embarrassing.

Share My Horror: The World’s Worst Debt Visualization

Some days I wake up ready to crush my debts. I am filled with fire and vinegar. (No, the vinegar does not put out the fire.) I double down on everything I do on that day—I spend less, work harder, and plan more.

Other days, I wake up feeling like Idgaf, Queen of the I Don’t Give a Fuck Tribe of Greater New England. On those days, I find myself wasting time with stuff that distracts me rather than enriches me. I play old video games I’ve already beaten three times before, and mewl at my partner to take me to Five Guys. On those days, it can feel like the sacrifices aren’t getting me anywhere.

What can I learn from this? Besides the fact that I suffer from intermittent depression, because I already knew that.

I have a sprinter’s attention span and marathon financial goals. My current financial goal will take at least nine years to achieve. Maintaining momentum and motivation over such a long period of time is really hard.

I’ve tried making visualizations to help me stay on track, and I’m going to share two with you today. Including an old one that is weirdly fucked up and embarrassing.

Embarrassing!!!

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The proof is in the pudding. The cold, hard, numerical pudding.

The Debt-Killing Power of Rounding Up

If you haven’t noticed by now, I’m a big fan of incrementalism. Like an establishment politician, I believe in taking reasonable baby steps toward an idealized future (and unlike said politician, some day I’ll actually get there… at least where my personal finances are concerned).

You can make really big progress on your debt and savings gradually, by degrees, and it feels so much more manageable and easy than committing yourself to meeting your financial goals in big chunks.

Take, for example, the debt-killing power of rounding up on all your bills.

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Building a Scrooge McDuckian money vault is too gauche.

I Paid off My Student Loans. Now What?

After spending over a year scrambling to put every extra dollar I could find into my student loans, I’ve paid them all off almost five years ahead of schedule. I’m now in the enviable position of having a big chunk of extra money every month. It literally feels like I just got a massive raise. So what do I do with it?

Building a Scrooge McDuckian money vault is far too gauche. And besides, I want to use this money to improve my financial position in the fastest, most badass way possible (with badass defined as “most profitable in the long-term”). There’s no shortage of options.

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Why? Because fuck student loans.

I Paid off My Student Loans Ahead of Schedule. Here’s How.

I paid off my student loans almost five years ahead of schedule.

I dedicated every waking hour for a little over a year to stomping out these loans like the parasitic infestation that they were, and now that this monumental task has been accomplished it feels really, really good. I wiped out about the last $18k of loans in 14 months, and doing that required intense discipline and concentration. I channeled the mental fortitude of a Buddhist monk and the austerity of an Irish peasant circa the Potato Famine. Here’s why and how I did it.

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