The savings and debt debate has been ongoing since the first loan was created. With only so much income to spread around, a big decision must be made. Do you use any extra money to pay off debt or add it to savings?
It’s a fine line which is the right path to follow. On one side you have the debt first absolutists, the other is the futurist savers and some where in between you’ll find your comfort zone.
Debt First Argument
The debt first argument, in the savings and debt debate, is an easy one when you compare low savings account rates with high credit card interest rates. You can’t really argue against it. Pay off those 15% credit cards. But what about those other, lower rate loans, like a mortgage, car loan, or student loans? Continue Reading…
One of the more confusing aspects of bond investing is the relationship of bond price and yield. As bond investors we want high prices and high yields but it’s just not possible. At least not at the same time. This is where the confusion begins. In a time where interest rates are at all time lows, understanding the bond price and yield relationship is important.
