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Cars Are Expensive – Really F*cking Expensive – They Destroy Wealth

In Financial Analysis by Gen Y Finance Guy28 Comments

Reading Time: 3 minutesA few months ago I shared a post about helping my brother get a new car after he totaled his previous one. It really got me thinking about how much it was costing the GYFG household to have two cars. Unfortunately, we bought our cars before we had solidified our financial philosophies. My wife and I both bought new cars within …

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Income Across the USA – What Does It Take To Be In The Top 5%? Top 1%?

In Financial Analysis by Gen Y Finance Guy15 Comments

Reading Time: 4 minutesAs the income of the GYFG household has continued to grow, being the data obsessed fellow that I am, I started to wonder where we ranked across the Unite States. Most people benchmark their investment returns, so why not benchmark your income? Lucky for us, the NY Times has made this extremely easy with the interactive tool they created (based on …

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Wealth Building Made Simple: Make Sure You Get A Little Richer Every day

In Financial Analysis, Financial Freedom by Gen Y Finance Guy10 Comments

Reading Time: 3 minutesNote: Just to clear up any confusion, although I say “get a little richer every day,” I don’t mean this in the literal sense. The idea is to get a little richer every day on average. Personally I calculate this by taking my total savings for the year dividing by 365 days. I have known since I was a little …

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The Details Behind Our $105,000 Investment

In Financial Analysis by Gen Y Finance Guy44 Comments

Reading Time: 6 minutesOne of the perks of joining the executive team at the company I work for is either being granted options or the opportunity to get equity (i.e stock) in the company. Not everyone gets a choice, but I am fortunate to be in a position where I get to choose. There are pros and cons to each, which I plan …

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Paid Off Mortgage is Equivalent to a…Perpetuity?…Bond?…Dividend Paying Stock?

In Financial Analysis, Mortgage Snowball by Gen Y Finance Guy27 Comments

Reading Time: 5 minutesHaving a fully paid mortgage sure does get a bad wrap around personal finance circles. I constantly see arguments about money being super cheap and that paying off the mortgage will lead to a loss of the interest tax deduction. I won’t argue that rates are historically cheap and that eliminating your mortgage will lead to eliminating the tax deduction. …

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Looking at Savings Rate through the Financial Independence Lens

In Financial Analysis, Financial Freedom by Gen Y Finance Guy19 Comments

Reading Time: 3 minutesIn previous posts I have talked about how we currently strive to save 50% of our after tax income and how important your savings rate is in building wealth rapidly. But after listening to the Radical Personal Finance Podcast, it made me realize that this may have not been enough to sway you. What I mean, is that this may …

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Cash-in Refinance – 16.5% Cash on Cash Return

In Financial Analysis, Real Estate by Gen Y Finance Guy29 Comments

Reading Time: 6 minutesMost of the time when you hear about refinancing it is usually along the lines of locking in a lower rate and/or cashing out during the refinance. You don’t read or hear much about a cash-in refinance and how the returns could really be worth consideration. My wife and I currently find ourselves about 10 years into the 5/1 ARM …

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2015 Annual Expense Review [We Spent $137,542]

In Financial Analysis by Gen Y Finance Guy10 Comments

Reading Time: 7 minutesIt has been written on this site many times before, but is probably worth reminding everyone. We don’t put that much focus and energy into the expense side of the equation as we prefer operating within the 50/50 law and spending our energy increasing income.  For those of you that are new to this blog, the 50/50 law allows us …

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Earning Your First Million Dollars – A Stroll Down Memory Lane

In Financial Analysis by Gen Y Finance Guy30 Comments

Reading Time: 6 minutesHave you ever heard the saying that “earning the first million is the hardest?” Or what about “the 2nd million comes faster than the first?” Supposedly it gets easier and faster the further along you travel in your financial journey. These questions got me thinking about how long it took me to earn my first million (or more accurately asked, …

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Savings Rate – The Most Important Variable to Wealth Building [and the math to prove it]

In Financial Analysis, Financial Freedom by Gen Y Finance Guy37 Comments

Reading Time: 8 minutesWhen it comes to wealth building there are many variables to consider, but as I have stated in my monthly financial reports many times, it’s the savings rate that doesn’t get the attention it deserves. This is especially true in the short run and when you are trying to accumulate wealth as quickly as possible (20 years or less). Yes, …