Financial Samurai

My parents taught me never to order a beverage other than tap water because prices were astronomically high compared to cost.  Til this day, I still have trouble ordering anything other than a glass of water with a lemon slice if I’m going out to eat.  I start rationalizing how water has zero calories, is plentiful, and good for me.  Meanwhile, I’m craving the $6 fresh young coconut juice to go with my chicken satay at my favorite Malaysian restaurant.

One of the best tricks I’ve devised to overcome spending guilt is to actually purchase what’s desired, marvel at it through the duration of the return policy, and return it!  If there was a 30 day return policy on cars, I would literally be the most hated customer in the area because I would have no shame buying a new one every other month and handing back the keys.  I’m addicted to cars and their new car smell, even though I’ve stayed “sober” with Moose for over 5 years now.

OLD HABITS ARE HARD TO BREAK Read more…

The majority of us are middle class, defined as neither rich nor poor. Seriously, that’s the official definition of middle class, because depending on who you talk to and where they live, you’ll get different answers.  A $50,000 household income for a family of four is absolutely middle class in Des Moines, Iowa but is closer to poverty in New York City.

Statisticians say middle class is a household income between $25,000 and $100,000 a year.  Anything above $100,000 is deemed “upper middle class”.  It’s funny how there’s no usage of the categories “lower class” and “upper class” isn’t it?  It’s as if someone didn’t want to hurt someone else’s feelings.  In cities such as San Francisco and New York, middle class income might very well extend all the way up to $250,000 given the median house price in San Francisco is $700,000 and it regularly costs $1,000+/sqft in New York City to buy.

Whether you make $30,000 a year or $250,000 a year, I venture to guess the majority will consider ourselves middle class.  There’s an important psychology involved, and that is when it comes to financials, nobody wants to stray too far from the core.  If you consider yourself rich, you will be hunted down.  And if you start considering yourself poor, others will ridicule you for being dumb or lazy.  Classifying yourself as middle class keeps you safe and warm!

WE ALL CAME FROM SOMEWHERE Read more…

Imagine you’re a financially successful 35 year old professional making $250,000 a year.  You’re still $130,000 short from being in the top 1%, but by any other metric, you’re doing just dandy.  Yet, instead of living a comfortable life, you live like a pauper, renting the same dumpy one bedroom since you were 25.  For wheels, you drive a 2002 Toyota Corolla and for vacation, you always stay domestic, never wanting to see the world.  Everything you do, or don’t do rather, is because you want to save money.

Some of you may think this is a great way to live, as certainly you’ll be saving a boat load of cash for retirement.  I say there’s absolutely no point making that kind of money if you are going to live so frugally.  Six figure jobs are a dime a dozen, but generally come with higher stress.  As such, you might as well just make a fraction and lead a carefree life if you never plan to spend your earnings.

Watching the zeros grow in your bank account is a very empty feeling after a certain point.  It might boost your self-esteem to tell your friends how much you have, but that’s just shallow.  Cash is only a medium of exchange, and a means to provide a better life.  If you aren’t utilizing your cash, then you are wasting your time.

HOARDING LIKE A TORNADO IS COMING Read more…

I’ve been neglecting Moose for a couple weeks since I’ve been traveling so much.  But, I took him out for a spin the other day and was absolutely shocked to see that gas prices have ROCKETED to $4.11, $4.29, and $4.39 for regular, plus, and supreme at my neighborhood Chevron station!  I know WTI oil prices have risen to $112, but it really didn’t hit me until I saw and paid for the latest gasoline prices.

As a city dweller, I take the bus to and from work, and try and ride the bus as much as possible on the weekends.  The only times I really drive is to and from the tennis club, and up to Tahoe which is about 180 miles away.  Overall, I drive about 6,500 miles a year which is not that much compared to the national average of 15,500 miles a year.  With Moose getting roughly 17 mpg, I spend around $2,145 a year in gasoline, up from just $1,750 this time last year.

IF I’M SHOCKED, WHY AREN’T YOU SHOCKED TOO? Read more…

Over the last several days I’ve spent a lot of money.  First, I splurged on a 50 minute massage for $67 dollars that came from $260 in poker winnings the other night.  Does the $67 dollars count as “real money” since I didn’t have the money before the game?  Yes, because I could have easily lost $260 as well.  Saving any winnings from poker is a very empty feeling.  Instead, I like to spend it on something rewarding since the excitement of taking down a hand lasts about a nanosecond.

Second, I went on a double date with a client and his wife at this new French American restaurant and picked up the $230 bill.  The place definitely wasn’t cheap, what with the oysters, wine, cheese plates, bouillabaisse, and 24 layer crepes.  However, it was a good time and great for relationship building.  As he is officially a client, there was no hesitation to pay unlike my outing with the real estate agent the other week.

Finally, after two months of waiting and mingling, I’m now officially a member of this cozy old school tennis club.  I handed over my credit card to the member rep and watched her swipe it for a cool $10,000.  Curiously, I didn’t blink an eye because I was so excited to finally be apart of the family.  The process overall has taken 2 months!  There’s something about going to a place where everybody knows your name.  The club feels like one big family.

EXPERIENCES ALWAYS WIN Read more…

I have to admit, I’m having withdrawals from not driving a different car for over 3 years now.  I used to get a new (used) car every year by wheeling and dealing on Craigslist, but I stopped once I found Moose.  Moose is so handsome and adventurous, even the ladies love him.  I picked up a friend of mine one evening to go grab some grub, and she mentioned a week later that her stalking neighbor, who has a crush on her said he’s frustrated that guys who own “Moose-like” cars always gets the girl.  Maybe buddy, it’s the creepy way you stare out the corner of your window to spy on women that makes you still single?!

A year ago, Moose’s passenger side electronics seat stopped working to my dismay.  Luckily, the seat was in a comfortable, semi-reclined position so I let it be.  I told myself then that it might be time to start looking for another car soon as fixing the thing might cost $500+ dollars.  And so, I made a decision that as soon as the driver’s seat electronics also stopped working, I’d go and buy me another car.

Each week that went by, I started secretly hoping my seat would stop working.  I was hoping for something bad, but not too bad to happen, so I could justify buying something new!  Screw it, I thought.  I’m going to go visit the dealer and check out the new rides anyway.  Moose ain’t ever gonna fail me!

THE BENEVOLENT DEALER Read more…

I did some spring cleaning the other day and found two credit cards in my drawer which I totally forgot I had!  One was a Home Depot credit card I got three years ago at the check out counter because I could save 15% off my $3,000 purchase immediately.  The other card was a Banana Republic card that I applied for also three years ago to save 10% off my $1,300 purchase of a couple new suits, shirts, and shoes.  Both cards have zero balances, and neither have been used since the initial purchases!

My first reaction was to close both cards since I didn’t want someone risking get a hold of them and going crazy buying Brazilian rosewood floors at Home Depot or alligator shoes at Banana Republic or something.  In essence, I wanted peace of mind and so, I closed both cards.  To my surprise, I didn’t get a hard sell to leave them open.  I pressed several buttons on my cell phone and both cards are now shutdown.  Ahhh, so nice to not have to worry and have less potential holes to leak wealth.

SHOULD I HAVE CLOSED THEM THOUGH? Read more…

My name is Florentine and I am what the world describes as a “minimalist.”  I can pack all my belongings into two suitcases and go travel the world if I want.  I aim to make $30,000 a year from various online projects and consulting gigs, which makes me feel slightly guilty since there’s a hint of hypocrisy.  With an efficiency studio and a bicycle, I don’t need much money to lead a happy life.  I want to tell you a secret, which is a secret that many minimalists have, but don’t want anybody to know.

The reason why I deem myself a minimalist is because I have difficulty achieving more.  For three years after college, I tried my hardest to work myself up an advertisement company.  I was passed up for promotion, and then the recession came.  Instead of telling people I lost my job, I told people “I quit” so I could lead the life of freedom I’ve always wanted.  “Screw the world and conformity!”, I told everyone.  I was too ashamed to tell my parents and friends that after 4 years in college, all I could do was stay a gopher, photocopying papers and answering phones all day.  I didn’t even succeed at that. Read more…