The State Of The Union Address 2015 Cheat Sheet

State Of The Union President Obama 2015When President Obama gave the State Of The Union Address at 6pm PST, I had just left the office to go eat some yummy butter chicken and garlic naan at Amber Restaurant in downtown San Francisco. I assume many other hard-working West Coasters missed the SOTU address as well. Alas, living through an East Coast centric TV schedule is something we’ve grown used to.

But as any true patriot would do, I DVRed the SOTU address, watched the one hour long speech, took notes like a good student, and spent several hours putting together this 2,000 word article to help others think about our nation’s issues.

It’s important we all know and have an opinion about the main topics our nation faces. We don’t have to all agree, but having the knowledge helps us make choices about how we want to live, what occupations we should pursue, the type of investments we should make, and how others might view Americans on a global stage.

Knowledge is what will set us all free!

Make More Money, Save More Cash, Grow Your Net Worth Now!

Big Goals by Sergiy MatusevychHappy New Year Everyone!

I hope everybody is locked and loaded to get… loaded again in 2015! It’s somewhat arbitrary to set goals at the beginning of each year, but there’s no use fighting the power. The beginning of the year is when a large amount of assets get deployed into various investment classes. The beginning of the year is also when companies aggressively hire and spend their budgets. And the beginning of the year is when everybody is full of hope.

You want to be front and center!

Let me first discuss five basic and important financial goals everybody should achieve. I’ll then highlight my personal goals for 2015.

Financial Samurai Personal Year In Review 2014

Financial Samurai Year In Review Happy Holidays Everyone!

Year in review posts are one of my favorite posts to write because we tend to forget some of the things that happened in the first half of the year in favor of things that happened in the second half of the year. This type of cognitive bias is the reason why if you must slack off at work, you might as well do so from January – June and really shape up afterward. Almost every single company I know decides on bonuses and promotions in the second half.

I hope all of you have read 10 Helpful Financial Moves To Make Every Year, and checked off at least five of the ten items by now. I promise you that if you can go through all ten items, you’ll be ahead of 99% of the population when the chaos begins again.

Here’s a post about some things that went well, and some things that didn’t go so well this year. Surprisingly, it was pretty easy to find 10 of each. 

Even Billionaire Ron Conway Stands In Line To Wait His Turn, Why Can’t You?

Ron Conway Angel Investor Venture Capitalist

I was driving up to participate in a fun community picture collage event at the Yerba Buena Center for the Arts when I noticed Ron Conway, one of the fathers of angel investing stand in line just like the rest of us. He was probably in line for 10 minutes as the process took forever.

The reason why he’s a billionaire is because he invested in Larry Page and Sergey Brin when their company was still called Backrub at a sub $75 million valuation. Google is now worth $379 billion. Then there’s other hits such as Twitter, Facebook, Dropbox, Pinterest, Airbnb, and Zappos.

I briefly met Ron at a fund raiser for San Francisco Mayor Ed Lee a couple years ago, but didn’t say anything more than a “hi.” What strikes me about Ron is that he seems like a nice guy who deeply cares about the city of San Francisco through his various activism.

Ron’s patience reminded me that no matter how rich you get, it’s a good idea to stay humble and wait your turn like everybody else. Entitlement is a poison that will ruin you. And if you don’t want to respect the existing organization’s methodology or people, feel free to start your own.

See you at Ed’s election party this Tuesday Ron!

Do You Have The Right Money Mindset To Get Rich?

Money Mindset, Financial Samurai

A blank canvas can be worth millions

A 63 year old man knocked on my garage door at 9:30am. I let him in because he was one of my contractor’s helpers. His task for the day was to install baseboards in my downstairs hallway and put up crown moldings in my master bedroom and master closet.

For a couple months I deliberated whether to put crown moldings in my downstairs rooms to match the upstairs rooms. I was so tired from sanding and painting all the walls that I thought “good enough is good enough.” But as I went to view several nice open houses for design inspiration, I realized that what differentiated the truly nice houses from the average houses were the detail, i.e. crown moldings, wainscoting, draperies, wood panels, furniture, and electrical covers.

The total cost for the baseboards and crown moldings, including materials was $780. If Bed, Bath & Beyond can force me to buy $1,300 worth of curtains (ridiculous!), I figured I could spend $780 on some woodwork.

The older gentleman greeted me with a smile and told me in Mandarin, “Son, great job on choosing crown moldings. You will be elevating the feel and stature of your home! And when you turn around and sell it, you will be able to sell the house for much more.”

I thanked him and wished him good luck in the walk-in closet where the space was extra tight because I had built in some shelves the day before. The man and his helper were supposed to come a week before to install the baseboards and crown moldings, but their boss changed the schedule last minute as is commonly the case when dealing with contractors.

He proceeded to ask, “What about the lower level part of the house? Do you plan to develop it so you can rent it out in order to pay off your mortgage sooner? I’d definitely do that!”

I wasn’t evening thinking about developing the storage area downstairs. All I wanted to do was get the existing footprint squared away. “No plans, sir. I’ve had enough of remodeling and I just want to keep things simple,” I responded.

When I came back home from work at 6pm he was filling in the staple holes with silicon. He was proud of his work, and I was impressed with his work ethic. The crown moldings definitely made both rooms look much more luxurious.

Now all I have left to do with my remodel is blow a hole in the closet wall to install a window, install sliding glass doors in the bedroom, build a 250 square foot deck, create a new bathroom and I’ll be done!

What Do You Have Left To Prove?

Ship in the sunsetI like conflict because it gives me motivation to try harder. During high school I had the talent to play at an elite level of tennis if I trained more. Unfortunately, I didn’t want to work on my backhand and nobody was really badgering me. As a result, I only received “First Team All District” honors instead of achieving “All Sectionals” honors at the end of senior year. Because I wanted to spend more time with my girlfriend and I didn’t want to spend time traveling on weekends to play tennis tournaments, I never received any recognition from college coaches except for a small Division III school. I sometimes wonder what could have been if I went all out.

Nobody made me feel like a loser about tennis because I was already the team captain for two years and had a girlfriend. Girlfriend + Captain in high school is a respectable combo. I didn’t have anything to prove, so I didn’t do anything more.

But now as a 37 year old, I love playing tennis. I’ve worked on my topspin backhand religiously for three years and I’m entering tournaments now. The problem is my body isn’t as fast or as strong as it was 20 years ago. I’ve got a torn meniscus that is slowing me down. Damn. I wish I had the same enthusiasm back then. It’s because I know my time left playing competitive singles is limited, that I’m trying to do as much as I can now. When you’re young, you think everything will last forever.

There are other events that have left an indelible mark on my psyche. When I was 20 years old, four offensive linemen from the university football team came into Denny’s and attacked me and my girlfriend with racial slurs. We were used to racial conflict living in the South, but I was still pissed because they attacked my girl’s honor. Attack me all you want, but don’t attack the people I care about. The incident motivated both of us to do well for the remaining two years of school and try to become financially independent as soon as possible. I wanted to prove to them that I could rise above their bullshit perceptions.

When I was 32 years old, a junior colleague started making fun of me when I told him I was starting a personal finance site. He started making a weird face and typing on an air keyboard, mocking my idea. I guess I smiled, but inside I was thinking, you little prick. Whenever the going gets tough online, I remember back to this incident and push on through. Word has it he’s miserable at his job because he’s stuck. Welcome to the real world, buddy. Guess you should have joined me in air keyboard class.

The Secret To Perfect Happiness Revealed! Make Over $500,000 A Year

Wealth And Happiness Chart

In an amazing Gallup poll highlighted by the Wall Street Journal, it says that 100% of those who make more than $500,000 are “very happy”! That’s right. Not 98%. Not 99%. But a pure 100%.

This is a breakthrough research finding that has amazingly received little publicity. When you find perfection, it must be revealed! Surely this study is more earth-shattering than a University of Alabama PhD finding that those who ate more fried chicken had a higher chance of a stroke. More money, more delirious happiness, not more problems, silly Biggy. Read: Evidence Making Money Has Never Been Easier

Hence, the simple solution to eliminating wars and eradicating all levels of sadness is to make over $500,000. Folks like Bill Gates, Larry Ellison, Mark Zuckerberg, Michael Bloomberg, Li Ka Shing, The Walmart clan, Ray Dalio, and anybody who just inherited a bunch of money can make a difference in the lives of so many. All they have to do is donate $449,000 a year to median families given the median household income is roughly $51,000.

I want to see a tag-team cage match between Princeton economist Angus Deaton and Princeton psychologist Daniel Kahneman who say that $75,000 is the ideal income for maximum happiness vs. Michigan Public Policy professor Betsey Stevenson (currently serving as a Member of the Council Of Economic Advisers) and Michigan economist Justin Wolfers who conclude that $500,000 is the magic number. Don’t you?