Category: debt

Being on the Same Page Is Vital to Your Family’s Future

Dear Dave, My wife and I are in our 20s, and together we make about $80,000 a year. Our first baby is due in early 2022, so being debt-free has become a top priority in my mind. Right now, we have two cars. The one I drive is paid off and has a lot of…


‘Devastating Consequences’ If Bank of Canada Continues to Finance Government Debt Without Repayment: Study

The idea that the federal government can rely on the Bank of Canada to continue printing money to sustain its debt without a clear commitment to repay—also known as Modern Monetary Theory (MMT)—poses huge risks to the Canadian economy, a study (pdf) published on May 18 found. “Modern monetary theory is a pipe dream, and…


Most of Orange County’s School Districts Are in Debt

Commentary Of the 27 school districts in Orange County, just one has restricted net assets. The remaining districts have unrestricted net assets, meaning their liabilities exceed their assets. To help understand the solvency of school districts, I provided a chart. It provides the unrestricted net position from the June 30, 2019 audited financial statements from…


Live Like the Money Isn’t There

Dear Dave, I’m 24, single, and I make $60,000 a year. I’m also debt-free and live in an apartment, plus I have about $550,000 in a brokerage account that’s made up of 75 percent mutual funds and 25 percent single stocks. The money in the brokerage account was originally an inheritance of $280,000 that has…


How Can I Stop Living Paycheck to Paycheck?

Dear Carrie: I’m a single mom with a decent income, but I’m always living paycheck to paycheck. How can I break that cycle and start to save, not only for an emergency but also for my bigger goals like retirement and maybe even a home?—A Reader Dear Reader: Living paycheck to paycheck isn’t uncommon these…


Deep Dive (April 21): National Debt Hits $123 Trillion, $800,000 per Taxpayer: Study

A new report found America’s national debt now exceeds $123 trillion. That’s four times the U.S. Treasury Department’s figure of $28 trillion. What does that mean in terms of taxpayer dollars? The $123 trillion figure means close to $800,000 per taxpayer, while the official figure of $28 trillion means around $180,000 per taxpayer. As to…


Huarong Turmoil Tests Limits of Chinese Government Support

News Analysis Financial problems at a Chinese state-owned financial firm could make foreign investors reevaluate their risk tolerance for Chinese corporate bonds. One of China’s four massive asset management companies created around the turn of the century, China Huarong Asset Management Co., has been rumored to be on the verge of insolvency. As one of…


Money Myths: 10 Ways We Fool Ourselves About Managing Credit

Dear Readers: April Fools’ Day can make for a good joke, but there are certain myths about money that, if not dispelled quickly, are no laughing matter. Misconceptions about credit and debt are right at the top of the list. Here are 10 common beliefs about credit that can lead to financial trouble. Don’t fall…


How to Teach Your Kids About Money

If you guys have been hearing the term “financial literacy” a lot, there’s a good reason—it’s one of the most important money-related topics! And that’s why April has been named Financial Literacy Month. I’m a huge believer in financial literacy for everyone, but this stuff is especially important if you have kids who are in…


Obstacles and Answers

Dear Dave, In your mind, what are some of the biggest mental and emotional obstacles preventing people from addressing their financial problems? Roger Dear Roger, This is a great question! There are always circumstances beyond our control that can put us in a bad place, financially or otherwise, for a season. But to change your…