Financial Samurai

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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President Obama plans on limiting the tax break for charity deductions to 28%, penalizes those in the 33%, 35%, and soon to be 40% federal income tax brackets.  Since the overwhelming majority of charitable contributions come from households, and the overwhelming absolute dollar amount comes from those in the highest tax brackets, one can deduce charitable contributions at the margin will go down in 2011 and beyond.  Given this logical conclusion, why are Democrats and President Obama against helping others through monetary means?

Currently, if you are in the 25% tax bracket, you can save 25% in taxes due to your charitable contributions i.e. donate $10,000, save $2,500 off your tax bill.  Meanwhile, there is equality among those who pay the highest taxes at 35%.  35% tax payers can equally save 35% in taxes from their donations.  So far, so good.

Due to massive government pork spending it’s egregious that politicians now want to not only raise the highest marginal tax bracket from 35% to 40%, but also cut tax breaks on charitable contributions down to 28%!  That’s two slaps in the faces of hard working Americans and a punch in the gut for those who need the most help.

BASIC UNDERSTANDING Read more…