A pin in chess occurs when a defending piece cannot move without exposing a more valuable defending piece on its other side to capture by an attacking piece. This is where a picture is worth a thousand words:
Now, just like not all debt is bad (in my opinion), not all pins are bad either. In the above diagram, Black could move its white-squared bishop to d7 on the next move, breaking the pin. The position would look like this:
- No Consumer Debt: This is a tough one for many, and at times we’ve had consumer debt from cars, furniture and the like. Now we eschew any consumer debt. We paid cash for our last car, and if we can’t afford something, we don’t buy it. This is a sacrifice to be sure, but the financial freedom it brings is well worth it.
- Pay More Than The Minimum: For existing debt, we try to pay more than the minimum required payment each month. Even if it’s just a few dollars a month, over time, it will make a big difference.
- Keep Mortgage Debt Below 25%: We keep our monthly mortgage payment below 25% of our gross income. Currently we stand at about 20%, and as my income goes up (hopefully), the percent goes down. I find that a mortgage of 15% or lower really starts to lighten the load. In some very expensive areas, it’s tough to find a home at that price, but over time with a fixed rate mortgage, you can reach these goals.
Our chess puzzle today will show you just how bad a pin (or debt) can be. In the diagram below, it is white to move and gain a winning advantage. Can you find the right moves?
Good luck, and here are some good resources for managing your debt: