Wish Your Parents Were More Strict On You Growing Up?

Father's Day by Colleen KongThe earliest memory I have of my father disciplining me was when I threw a hissy fit as a 4th grader. I went into his office and tore up all his meticulously typed work papers and went to bed crying because he didn’t allow me to do something. There was no computer to save your work then, just original copies that had to be painstakingly retyped if something was off.

Instead of waking me up for punishment, my father waited until the next morning when I had calmed down. I knew what I did was wrong and felt a tremendous sense of guilt and trepidation. He sat on my bedside and told me calmly, “Son, what you did was wrong last night. Those papers took hours for me to type. Don’t do that again.

My father was stern, but compassionate. Because he didn’t yell or hit me, I developed an enormous sense of appreciation for his guidance. I began seriously listening to all his advice, and being more compassionate as a person as I grew older. I am all about second and third chances.

Your Obsession With Being The Best Is Killing Happiness

World's Happiest People

World’s Happiest People

Since I can remember, I’ve been made fun of and criticized for trying to be the best at whatever thing it was I was interested in at the time. My AP History teacher in high school was amazing and I would sit in the front of the class engrossed by all the stories he told about the Civil War and how he got to be an extra in Matthew Broderick and Denzel Washington’s 1989 movie, Glory.

At the end of the year, Mr. Stanton was kind enough to give me the AP History Award for most outstanding student. I was honored, but surprised because I wasn’t a great student and this was my only academic award I ever received. I think he just appreciated someone always attentively listening instead of dozing off like some of my other classmates.

But I disappointed Mr. Stanton in the end because I didn’t try harder. When I got the award, a couple classmates made me feel like a loser. They said I was a dork for liking history so much. As a result of such feedback, I decided not to study a lot for the AP History placement test, which could have given me college credit if I scored a 3 or better out of 5.

When Mr. Stanton enthusiastically asked how I did once he knew the scores were out, I didn’t want to tell him because I only scored a 2. I was not the most outstanding student he had envisioned and I felt horrible for letting him down.

“Sam, don’t worry about the exam,” replied Mr. Stanton. “It’s hard to remember everything in history anyway. But if you remember one thing, remember to never let anybody keep you from going for what you want. Thanks for always attending my classes and playing a good game of Risk!”

After Mr. Stanton’s talk, I began feeling angry that I let people negatively affect something I cared about. The battle was on between trying to be the best, not wanting to be a disappointment to others, and never letting anybody keep me from doing what I enjoyed again. Perhaps you’ve experienced a similar battle growing up and as an adult today.

The Average Savings Rates By Income (Wealth Class)

costWe all know that Americans as a whole don’t save a lot of money. The latest savings statistics for 2014 shows that the average American only saves ~4% of their income a year. 4%! In other words, it takes the average American 25 years to save just one year’s worth of living expenses. That is a disaster.

When you’re 60-something years old and only have 1.6 years worth of living expenses to buttress your declining Social Security checks, life isn’t going to be very leisurely. You’ll probably be mad at the government for lying to you and mad at yourself for not saving more when you still had a chance.

The problem with averages is that averages distort reality. For example, the average household has a net worth of approximately $710,000. You and I know that this is impossible based on common sense. But simple math doesn’t lie. Take the total household wealth in the US of $81.8 trillion (according to the Fed) and divide by 115,226,802 US households (according to the Census Bureau) and you get $710,000. (Related: How Much Should My Net Worth Be By Income?)

I’m absolutely positive more than 90% of Financial Samurai readers save more than 4%. We are personal finance enthusiasts after all. Therefore, what’s the reality behind this ~4% national savings figure? The truth is that savings rates vary by income.

How To Convince Your Spouse To Work Longer So You Can Retire Earlier

Retiring early on the beachOne can either work hard for their wealth, inherit their wealth, or marry into wealth. No way is the right way to get rich. Although the most honorable way is probably getting wealthy with your own two hands.

When I wrote the post, “Stay At Home Men Of The World, UNITE!” in February of 2012, I was being a little silly. The post was just a fun way of forecasting life as a stay at home man as I sought to build my online media business. Two years later there’s still a huge bias against men who are stay at home dads or non-breadwinners. Men who work traditional day jobs love to poke fun at men who don’t. Women, on the other hand, don’t seem biased at all against men who don’t work. In fact, I know several men and women who don’t work who ended up being secret lovers!

One of the strategies to retiring early is to have a working spouse. I have a couple lady friends who retired at 32 and now enjoy playing tennis and drinking chamomile tea during the day at my club as their husbands work their private equity jobs. One lady worked in advertising, and the other lady worked in corporate retail. When I asked whether either of them missed working they laughed in unison and said, “Not at all!”

During my time away from Corporate America from 2012-2013, I also met a lot of guys at Golden Gate Park (where I also play tennis) who retired early because their spouses worked. They were a little older on the early retiree spectrum (40-50). One husband’s wife is a cardiologist at UCSF Hospital. Another guy’s girlfriend is an executive at Salesforce.com. No doubt both their partners are doing well. All of the early retiree guys employed nannies to take care of their children during the day so they could play tennis as well. Gotta love it.

Thanks to the strengthening equality of men and women in the work force, more men are able to break free from corporate bondage to live alternative lifestyles. Men can be the stay-at-home parent now. Men can drink beers at the country club after a round of golf with their buddies and not have to worry as much about money anymore. The equalization of the sexes for career advancement and pay have been a big boon for men as well.

In this article, I’d like to share some tips from early retirees who successfully convinced their spouse or partner to continue working so they don’t have to. 

The Best Area To Buy Property In San Francisco (Or Any Major City) Today

Golden Gate Heights View

View From Grand View Park, San Francisco

I realize not everybody lives in San Francisco, but there are insights into this article that can help you find the best area to buy property in your respective city as well. I’m just going to use San Francisco as an example since I live here.

If you want to buy real estate as an investment, it’s important the area not only has a strong domestic demand curve due to a robust labor market, but also a strong international demand curve as well. It’s the international demand curve that really lifts prices higher during good times.

Less than 0.5% of the housing stock is for sale at any given moment. It doesn’t take much to create a property bidding frenzy if you add international buyers to the mix of domestic buyers. Prices in London are being driven by Russian and Middle Eastern tycoons. Prices in Hong Kong are being driven by the wealthy Mainland Chinese. Prices in Singapore are being driven by wealthy Indonesians and expats. While prices in San Francisco are being driven by the tech boom, low interest rates, restrictive building codes, limited land and foreign buyers from China and Russia.

To sell property now is like selling Apple Inc. at $390 a while ago. Your property may have appreciated a lot since purchase, but there’s still a long ways to go if you can hold on. Thankfully for buyers, couples will always get divorced, homeowners will always want to upgrade or downgrade, and companies will always lay off or relocate their employees. There just isn’t enough supply to meet demand in San Francisco, and it’s unlikely there ever will be enough supply with the rise of tech powerhouses such as Facebook, Twitter, Google, and Apple.

Apple alone has gained more than $100 billion in market capitalization in 2014 and employs over 20,000 people in the San Francisco Bay Area. Now imagine what will happen to housing demand when Pinterest, Airbnb, Dropbox, and Uber go public in the next several years? They are hiring like crazy at $70,000 – $200,000 a pop and already have valuations in the $5 – $17 billion dollar range, each.