Financial Samurai

Every large corporation has some type of annual “Diversity Training” course where we learn not to harass colleagues, send out crude jokes over e-mail, and discriminate against those unlike ourselves.  Everything generally makes sense except for one rule that I once read: “One shall not discriminate against someone over 40.”  I thought about this for a second, and I began to wonder if they had made a typo.

At age 40, one will have worked for 18 years out of college or 15 years out of graduate school on average.  If the accepted age of retirement is 65, or 25 years away from 40, then the rule is implying that age discrimination starts before you are even half way through your average 40 year long career!

The other interesting fact is that most people are living longer nowadays.  Forties are the new thirties as they say.  People are looking younger and younger at various age milestones.  Hence the question, why 40?  Let’s explore the various reasons.

NEGATIVE PERCEPTIONS ABOUT OLDER WORKERS Read more…

Insensitive statements by Senate Majority Leader Harry Reid (D) not only infuriates many, but also raises one titillating question: Why isn’t President Obama considered white? Obama’s mother is white, and his father is black.  He relates more to his white side of the family given his father left him as a child.  Hence, isn’t it logical to think Obama is more white than black?  Let’s see if we can change Obama’s default setting to the world.

THREE SUGGESTIONS AS TO WHY

1) “He doesn’t look white.”

Well, what does “white” look like?  Yes, Obama doesn’t look like a Norwegian Viking, but you can still tell he’s mixed.  Since when does being half black mean that he’s full black?  If a white person is only supposed to look like Tiger Wood’s wife Elin, then we need to revise what the definition of white is. Read more…

This is the first year where I actually owe money to the government and I’m not too pleased.  For all intensive purposes, I should be happy that I got a free multi-thousand loan for the year, but it just feels off.  Your typical personal finance blogger will argue that it’s stupid to celebrate a tax refund, but I’m telling you to go right ahead.  Tax refunds are good for most people because most people can’t save for cookies!

I’m waiting until the absolute last moment to file because I constantly find errors in the way I’m doing my returns.  There’s no doubt in my mind that every single tax return submitted by an individual has at least one error, or sub-optimal input.  I generally go over my taxes at least three times before submitting them.  It’s in my nature to double and triple check everything when it comes to money.

Doing your own taxes forces you to learn a tremendous amount about your finances.  It heightens your awareness, leading to better financial decisions.  You learn about things such as deduction limit phases outs, rental property amortization, and alternative minimum taxes all too well.

Once you understand how much income leakage there is, you’ll join the side which wishes for a fair flat tax and a smaller, more efficient government.  Too many people just blindly follow what their accountant tells them to do without fully understanding where their money is going.  That’s irresponsible.  My #1 tax tip for everyone is to do your own taxes at least once.  Even if you make mistakes, which you will, you’ll be a better person because if it!

Readers, how many of you do your own taxes?  With tax software making things relatively simple nowadays, why not try it out on your own if you don’t now?  Taxes are due Thurs, April 15th in case you don’t know. Read more…

The poker game ends and the team of entrepreneurs and new media types say their good-byes.  I leave up $51 bucks, which is a nice return given my $100 buy-in, but it’s a pittance against others leaving with wads of cash big enough to substitute for butt-cheek implants if so desired.

The last time I was out until 3:30am was when George W.  proclaimed we won the war.  There are so few cars on the road, when I do see one, I wonder what trickery lies ahead.  There’s a certain tranquility one feels when others are sleeping.  Dim yellow lights glow in San Francisco’s misty haze.  Nobody bothers you because nobody is conscious enough to care.

Almost home, I decide to instead drive towards the Bay and take in the silence of black murky waters and a revolving spotlight that perpetually emits from Alcatraz.  I wondered if this calm is how Frank Lee Morris felt before he tried escaping The Rock some 48 years ago.

TAP, TAP, KNOCK Read more…

It’s difficult to save money and not splurge on things you want.  Let’s face it, those financial goals you made this year will need as much help as you can get.  One of the key ways I save is to play games.  Let me show you what I mean.

SAMURAI SEPTEMBER

Last July, I made a resolution not to spend any money on things other than basic necessities such as food and my bus pass in September.  Even filling up Moose with gas was pretty much off-limits as we decided to do a lot of biking, walking, and carpooling instead.

By naming September, Samurai September, the game was set in motion to see if I could succeed.  Not only did I not spend any money that month, I didn’t spend any money in October either!  I wanted to beat the rules of my game, and break the record by as far a margin as possible.  The feeling is just like trying to smash the Pacman record by a wide margin, so nobody will ever unseat you.

THE “I WON’T SPEND MONEY UNTIL…..” GAME Read more…

So that’s it.  One quarter of the year is done, and a new quarter begins.  How’d you do?  Did you just meet expectations set forth in the 4th quarter of 2009?  Or did you beat expectations and prove to your shareholders and yourself that you’re investment worthy?  Executives of public companies go through this thought process all the time, and so should you.

There’s never been a better time than right now to go through all the clutter in the house and donate it all away.  Clutter should drive you nuts, because it’s a sign of excess.  Why do you need 7 pairs of jeans, 50 pairs of shoes, and all those magazines?  You don’t!  I don’t and I’m very disappointed in myself for accumulating so much junk over the years.

It really makes me sick to have so much stuff.  When I lived in a studio apartment, the place was filled with crap.  Now I live in a house, and it’s no different.  Consumerism has infiltrated me thoroughly.  On the bright side, thank goodness for counterbalancing mechanisms. If a person never feels full (sick of clutter), they’ll eat until they explode!  Today, let’s de-clutter and simplify.

MARCH FAVORITE POSTS ON FINANCIAL SAMURAI

* “The Mental To Physical Connection For A Healthier Lifestyle”

* “Insuring The Uninsured Is Worth It”

* “Wealth Is An Illusion Of Happiness”

Heads up Wall Street Journal, CNBC, and Bloomberg, if you want to do an interview, better let us know quick because The Samurai Fund is now up 11.5% vs. only +5.6% for the S&P year-to-date!  LEN, HAR, BIG are leading the way.

HIGHLIGHT POSTS FROM AROUND THE SPHERE Read more…

Young or old, amateur or veteran, know there are rocketships in your midst ready to be ridden.  The rocketship is someone who is going places, and hopefully, through his or her shear power, you can hop aboard and increase your own success as well.

Look around the office and see if you can identify the rocketship.  The person is likely a hard worker who is respected by almost everyone on the floor.  If you were to view each person like a stock, you would buy the rocketship because there’s just something about them that tells you they’re going places.  The higher they fly, the more likely they will promote you along the way.

The same thing goes with social media and the blogosphere community.  Don’t count out the little guys.  Instead interact with those with an unusual amount of dedication and creativity.  Sincerely get to know them and help them out.  One day they might be the next Pete Cashmore from Mashable, you never know.  Expect nothing in return because if your relationship is sincere, things will just come.

A lot of folks talk a big game.  Beware.  The more one needs to talk about their successes, the less likely they are the rocketship.  It’s likely they are insecure, craving constant reassurance to justify their own relevance.  Remember to watch what they do, rather than what they say.  There are too many empty promises that never get delivered.

Everybody likes to win.  But first, you must identify the likely winners.  Once you do, it’s only a matter of time before you’re surrounded and soaring towards the moon!

Readers, do you have enough fuel to be a rocketship?  Have you benefited from others through their own success and initiatives?

Regards,

Sam @ Financial Samurai – “Slicing Through Money’s Mysteries”

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