The Personal Finance Geek

When it comes to housing, there are two main options: renting or owning. Each option has its own pros and cons, and the best choice for you will depend on your individual circumstances. If you're not sure which option is right for you, here's a quick rundown of the pros and cons of renting versus owning: Renting Pros: Renting is typically more affordable than owning, especially in high-cost areas. You don't have to worry about maintenance or repairs. You can move more easily if your needs change. Cons: You don't build equity in the property. You have less control over your living space. You may have to deal with noisy or inconsiderate neighbors. Owning Pros: You build equity in the property over time. You have more control over your living space. You can make changes to the property as you see fit. Cons: Owning can be more expensive than renting, especially when you factor in things like mortgage payments, property taxes, and homeowners insurance. You're respo...

  John and Jane are a married couple in their late 30s who graduated at the top of their classes, John from med school, and Jane from law school. They now earn a combined total of $1,400,000 working as a neurosurgeon and corporate counsel. They have a $2,500,000 mortgage; $300,000 left to pay from law school, and $250,000 to pay off from med school. They can allocate up to $23,333.33 every month to pay off their debts, and they want to make some progress on all their debts each month, to avoid a situation where they owe much more than anticipated and are trapped in debt much longer because interest piled up.                There are three commonly suggested methods for attacking debts like this. First, paying off exactly what the amortization schedule would require of them. These are the terms of  their 3 outstanding debts:   Amount borrowed Minimum payment ...

Bobby is a 20-year-old first-generation college student who works at a restaurant to pay his way through school and cover what his financial aid doesn't. When he started high school, his parents started saving up for a computer for him. Just recently, Bobby's roommate's cat destroyed his $1500 laptop that it took his parents so long to save for. He needs his own computer to do his coursework, so he can't wait for them to save enough money to buy another one for him: he needs to buy it himself. Bobby is a computer science major, so he knows the importance of regular, thorough backups. That's not what this story is about; Bobby's data is all safe and can be completely recovered, despite the cat's shenanigans. After paying for all his needs and forgoing all his wants, he has $720 to spare each month. Bobby doesn't have any savings of his own. He needs the computer right away, so he believes his only option is to get approved for a payday loan, buy the...