Financial Samurai » babble

Feeling Like A Burden Is A Terrible, Terrible Thing

admin — Wed, 07 Jul 2010 09:00:49 +0000

"Carried By The Wind" by Veronika Nagy

My nose plugs up and I can hardly breathe when I’m around cats too long. I don’t know why I’m allergic, I just am. One time I stayed over a friend’s place with three cats, and I woke up with red hives. It was a surprise that I was able to fall asleep at all, because I could have sworn I sneezed over 100 times until the underside of my nose bled.

One of my best friends invited me over to visit her childhood home this fall. Her mother lives near Boston, and unlucky for me another downside of East Coast living is the enormous pollen count. I remember countless days when I couldn’t go to work because my allergies were so bad. Ever since moving out West, my reactions have been much tamer. The San Francisco Bay acts as a natural filter, sucking out stagnant air to sea.

In addition to being out East, my friend’s mother also has a couple of dogs and cats! She sees this trip as a fun homecoming to introduce me to where she grew up. To me, I have no attachment there and it’s like going to a gas chamber for vacation. Imagine only being able to breathe through your two front teeth. That’s how I feel sometimes when allergies attack. You can’t get enough oxygen, so you aren’t able to speak. You lose energy and let sleep take over even though it’s in the middle of the day.

THE QUIET PLEA

When I asked my friend if it was OK to ask her mother if she could put the two cats in the basement during our visit, she paused. Sensing her objection, I offered up a solution of putting the two cats in the basement only at night, and let them out during the day when we go out and explore. Another pause. Fine, at which point I felt thoroughly disappointed. I’ll just go get a hotel room for $100 bucks a night I tell her, which is absolutely silly because there are two perfectly empty bedrooms at her mother’s house.

There was no compromise with my friend. She mentioned that one of the cats would object and start meowing and clawing at the door if she was left down in the basement. Oh really? That’s too bad. It’s not like a dungeon down there. I’m well aware of East Coast homes where many of them have fantastic basements filled with TVs, furniture, beds, and wet bars. A thousand square feet of living space for a cat is like 10,000 square feet of living space for a human. Nope, she doesn’t think it’s a good idea and is hesitant to ask her mom, who so happens to be very nice.

I’m sad, because when she comes over to my parent’s house, there’s nothing we won’t do to accommodate. For example, my parent’s house has a crazy neighbor on one side. The neighbor often talks out loud to herself and busts out in song. Her dog barks incessantly, and we are forced to hang out on the other side of the house sometimes. One visit, I found my friend sleeping on the sofa in the living room due to the noise, and that bothered me. It bothered me so much that I went with my father to see if we could get some airtight, double paned windows so she wouldn’t have to wake up in the middle of the night. Isn’t that a thoughtful gesture? I’m thinking of the future. We’re going to get those installed, I promise.

I’LL TRY HARDER

If I was mega rich, I wouldn’t feel so bad about my friend choosing her cats over me. I would say “no problem” to $100/night motel rooms, and would probably want to stay at $300 a night resorts where I could be pampered with room service, a spa, fine dining and other amenities. But, no, I’m not mega rich. I work on a loose budget and like to save money where I can.

So here is another reminder as to why I seek financial freedom. I don’t want to get my feelings hurt if I have to be compared against someone or a fuzzy animal. I gave her a couple chances to see if she could accommodate, and she just stayed silent. I don’t want to be sad or angry at my friend for putting her in a tough decision. I know she loves her cats dearly, but some would say that we are in love too.

Send me to the Four Seasons and let me spend large sums of money for a hotel room even if a cozy room is available for free. I’m sorry for being a burden to you and your cats dear friend. It’d be nice to discover medication and fancy, non Darth Vader-like contraptions that can help alleviate my allergies, but nothing seems to work. For now I’m no better than a cat, which is enough motivation to write this post and work harder at achieving my financial goals.

Readers, what are some of the things that frustrates you or makes you sad, which could be alleviated by having lots of money?

What would you do in my situation? Would you still bother going?

Maybe I’ll just go up to Tahoe and do some soul searching. She’s a lovely person and perhaps I have to just change my expectations.

Regards,

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

Follow on Twitter @FinancialSamura and subscribe to our RSS or E-mail feed.

The Katana: Switching Gears For The Summer

admin — Fri, 02 Jul 2010 09:01:34 +0000

Thanks to the invention of blogs and social media, you can intimately feel the summer malaise upon us. To participate in the change in moods, I’ll be lightening things up a little bit. I’ve always been kind of a joker and all this structured writing with beginning, middle and end is oh so well….. structured! Also, to invoke Ralph Ellison’s Invisible Man from AP English class is going to the extreme of stiffness, right? I’m not sure many really connected with the reference at all.

Who wants to read about the struggles of an African American man in the oppressive 1950s when everything is so hunky dory and harmonious nowadays. I do, but I think most others don’t. Does anybody even read the classics anymore? A little Slaughterhouse V by Kurt Vonnegut or Crime & Punishment Fyodor Dostoevsky anybody? Yeah, maybe 20 years ago, but not now. Now, all we read are gossip magazines and blogs with bad punctuation (yours truly) that tickle our guts with spurts of information.

Hence, from now until the end of August I’ll be throwing a little wasabi on the teriyaki as they say in Japan. I just made that up, but thought it sounded good. You might read a little more rambling and a lot less structure as I attempt to change writing styles. The Yakezie.com project is well underway and now is my time to goof around a little bit.

HIGHLIGHT POSTS OF THE WEEK

* “Mountain West Is The Best” by Jeff and “Forget Disneyland! The South Is The Happiest Place On Earth!” by Red. Great to see fellow bloggers challenge my assumption that there really is no comparison to West Coast living! I’m just stating my unequivocal, unbiased opinion why everybody should live and work out West for a better lifestyle. All I really want to see are those who object to my truth and stand up for themselves! Be proud of where you come from and where you’ve established roots! Don’t let some guy who undeniably loves where he lives pollute your mind with sunshine! Well done Jeff & Red!

* “Job Hurdles With Potential Holes Behind Them” by Don-san highlights something I failed to highlight in “Overcoming The Wall” with regards to progressing in the workplace. It’s important to have a manager who is secure with his or herself! If the manager is fearful of what his subordinates can do, then he’s going to oppress you! In this type of situation, I’d look for another job fast.

* “Find Out When You’ll Make A Million Calculator” by Monevator is a quick and easy plug and push tool. It’s important that people don’t get overly caught up with how inflation will erode your assets. Having a million dollars is a million dollars! Don’t let investment gurus and yada yada push you into investing in riskier assets so you can keep up and beat inflation. You’re letting them fear monger you to investing in something you wouldn’t otherwise invest in! Low inflation is here to stay, as I’ve indicated time and time again on this site. If you are happy with a 3-5% 5-7 year CD, then by all means use the “DVD Method To CD Investing!“ Know thyself and think thrice before investing in something you aren’t comfortable with.

* “How To Sell Your Home In 30 Days For $3,000 Or Less” from Neal reminds us of some essential things to do to sell your house and save you some money. The 5-6% real estate commission rate is absolutely ridiculous, especially with the industry turned on its head. You’d think that with home prices rising so much over the decades, that commission rates would fall, but nope, they aren’t. 5% on a $100,000 for $5,000 bucks, fine. 5% on a $1,000,000 for $50,000 bucks, forget it! Wake up industry! Part of the reason why you guys aren’t making more money is because you guys are making transaction costs prohibitively high!

* “You’re Still Young, Do It While You Can” from Wandering Earl highlights some fallacies in this statement. When we’re 20 we think 30 is old. When we’re 30 we think 20 is young. The point is, we’re always going to be young if we think young, and it’s not like once we are over 50 we are shackled down and unable to be free. It’s OK to get old! But, it’s not OK to have debilitating beliefs about yourself!

* “A Discussion With Carrie Schwab-Pomerantz, President of the Charles Schwab Foundation” on Consumerism Commentary. Carrie conducted a very interesting study on the Sandwich Generation and provides her survey findings. Did you know that Charles Schwab was a failing businessman when Carrie was 20 years old. She didn’t haven’t an allowance, and everything wasn’t a charmed life like some may believe. Her father taught her two things: 1) Importance of having a strong work ethic and 2) Savings.

Regards,

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

Follow on Twitter @FinancialSamura and subscribe to our RSS or E-mail feed.

East Coast Living – Is It Really That Bad?

admin — Wed, 09 Jun 2010 09:00:09 +0000

Any rational person would agree that living on the West Coast is better than living on the East Coast. Anybody who tells you otherwise probably has never experienced West Coast living long enough to understand the difference. I’m rational, and I’ve lived on both sides for many years and I don’t believe there’s really much of a debate. Who doesn’t want to live in more moderate temperatures where the sun is always shining? Unless you like super cold winters and uncomfortably muggy summers, the East Coast isn’t for you.

When your family and friends are on the East Coast, it’s hard to leave I understand. We’re afraid of change. I know I am. But, this is not a post to bash the East Coast. This is a post to understand what truly makes the East Coast and other uncomfortable climate zones special.

You see, a friend of mine is thinking about relocating to New York City or Washington DC for a little bit of adventure. I think she’s a little nuts leaving our California sunshine behind and I’m trying to understand why, and maybe even a why not.

EAST COAST POSITIVES

1) Richer history. Since the Europeans first invaded the East Coast of America, there is a much richer heritage as evidenced by more developed infrastructure and building architecture. Museums are more prevalent, and attractions are more interesting.

2) Closer to Europe. It’s easy to get a direct flight to Europe that’s also cheaper and quicker. Who doesn’t love to visit the bright lights of Paris, and the bustle of London every once in a while?

3) Time Zone Dominance. American TV and major broadcasts still revolves around eastern standard time. The stock market market opening at 9:30am, the French Open finals at 9am, and World Cup matches at 7am are all examples of major events serving the eastern time zone.

4) Food. Certain foods such as hot pastrami sandwiches, pizza, and cheese-steaks always seem tastier on the east coast for some reason. Perhaps there’s no real difference, other than the fact that when you eat a hot pastrami sandwich at Katz’s deli in NYC, it’s just more authentic given the history.

5) Less Earthquakes. Earthquake danger is overrated in California given the infrequency of large shakes. That said, the danger still exists. I’d much rather have a big earthquake every 30 years than tornadoes and hurricanes every year.

6) There’s Only Upside. Imagine if you were born and raised in Kauai. What a drag to leave! Once you live on the east coast, anywhere else you go will be so much better!

CONCLUSION

I really am trying to see the positives of living on the East Coast with my six examples. However, I have to admit I’m struggling to find more reasons. The weather is atrocious for half the year, and it would take quite a premium to leave California. Won’t you help share some of your reasons as to why the East Coast is so wonderful?

Follow up: West Coast Living – Yes It Really Is That Much Better!

Regards,

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

Follow on Twitter @FinancialSamura and subscribe to our RSS or E-mail feed.

Riding Rocketships For Greater Success

admin — Fri, 02 Apr 2010 09:00:07 +0000

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”

Follow on Twitter @FinancialSamura and subscribe to our RSS or E-mail feed.

Treat Your Job As If You Won The Lottery

admin — Thu, 04 Mar 2010 09:00:49 +0000

Do you hit the snooze button multiple times in the morning because you just don’t want to work? While at work, do you daydream of being somewhere else? Well too bad! You’ve won the lottery and you don’t even realize it!

Let’s say you make $50,000 a year. Divide your income by the current 4% risk free rate of return and you get $1,250,000! In other words, if you have $1,250,000 sitting in the bank right now earning a 4% rate of return, you’re making your current salary of $50,000 a year. Not bad winning $1,250,000 huh? Now take your income, and divide it by 4% (0.04) and let me know how much you’ve won!

It doesn’t matter what job you have now. Just know that the job you do have is coveted by a tremendous amount of people. This includes my first job mopping McDonald’s egg bits at 6am. My manager told me I was lucky to wear the purple and black (colors of the uniform) because he turned down 8 other candidates over the past month. I just felt lucky I could stuff my face with as many FREE apple pies when he wasn’t looking!

WHINE AND CHEESE

What is it about the water cooler that attracts the whining crowd? I swear, every time I go to the pantry to get a drink of water, all I hear are folks complaining about someone, or some aspect of the job they hate.

“I can’t believe Jerry is taking time off from work right now when we are so busy!”

“How come he gets a raise and I don’t?”

“I might as well be working for peanuts with the bonus they gave me!”

“Can’t believe we hired that dimwit. What was he thinking?”

There’s one colleague who literally complains in French for 45 minutes everyday non-stop! It’s like Pavlov’s Dog. As soon as we hear her French, we’re conditioned to think she’s complaining even though we don’t understand a word she’s saying. Complaining is like an infectious disease that invades that permeates and breaks teams apart. It’s got to stop!

IF ONLY PEOPLE KNEW HOW GOOD THEY HAVE IT

One in ten people are out of work, and there are plenty more who would HAPPILY do your job for less. Despite double-digit unemployment, misery pervades. Some blame it on having to do more work for the same pay since there are 10% less people to help contribute. Others think their jobs are beneath them. Well if that’s the case, just move!

Job hopping is a common phenomenon at the beginning of the year. The interesting thing is that once a hopper, always a hopper. You can see resumes with five jobs in as many years, making you wonder what the heck is wrong with the person. More times than not, it’s because the candidate always believes the other side is better. There comes a breaking point where an employer will stop giving you the benefit of the doubt for jumping around so much, and then you’re stuck in oblivion.

Every now and again, I get the case of “Greener Grass Syndrome.” I wonder what it’s like to do something else, or be someone else. Oh how wonderful they’ve got it. Then I snap back to reality and count my blessing with my existing employer. Everything is relative, and it’s important to treat your existing job as if you hit the big one.

CONCLUSION

If you have a job, just know that you are the winner among a large pool of quality candidates. Once you change your mindset, you’ll stop complaining and start flourishing again.

Readers, why do you think some workers complain so much about their jobs even during times of economic stress? Do you think men and women complain equally as much? With the economy still in a fragile state, why don’t people realize how good they have it?

* The risk free rate of return is simply the amount of money you can earn risk free. 4% is used because you can earn 4% in an FDIC-insured 5-yr CD currently. The 10-yr yield is also considered a RFR at 3.65%. Yes, we have to do something at our jobs to make money unlike the interest income from savings. That said, I’m trying to highlight a different mindset so disgruntled workers stop taking their jobs for granted.

Regards,

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

Follow on Twitter @FinancialSamura and subscribe to our RSS or E-mail feed.

The Katana: A Week Long Celebration of Love

admin — Sat, 06 Feb 2010 17:15:00 +0000

A Sliced Heart

With Valentine’s Day coming up, I thought it’d be nice to dedicate some of this week’s posts to relationships. Few things are as rewarding as finding the one you want to grow old with. I can be stranded somewhere in Kabul, and so long as the one is beside me, I am happy.

That said, does true love have a price? If a genie gave you the option of having $100 million dollars but never finding the love of your life, or finding that special someone but always living just above the poverty line, which would you choose?

Before answering the question, think about all the fun times you had in your prior relationships, some that could have been. Not all bad right? Now think carefully whether after a certain point, more money can really bring you more happiness.

My theory is that “love” will be the landslide victor, however, at the margin men will have a greater tendency to choose money over love, while women will gravitate towards love over money.

The Samurai Fund: -3.13% YTD vs. the S&P 500 -4.4%. Lenar +15%, Berkshire +11%, GE +4% and STE +6.15% continue to be stars. While MWW -18% and Toyota -11.3% are the biggest dogs. If Toyoda-san didn’t apologize on Friday, I would have sold the stock in a heart beat.

Samurai’s Alexa Ranking Challenge: Is growing strong! I’m very happy to see so many people progress and support each other. Forget about all about SEO, link ratios, and yourself. Keep up the content and the promoting of others! If you would like to join, read the post, let us know in the comments section with your rank so Daniel-san and I can track.

HIGHLIGHT POSTS OF THE WEEK

* “Winners And Losers Of The Obama Tax Plan” over at Darwin’s. I feel bad for the losers, especially charities.

* “Deliver Away Debt Joins The Millionaire Club” by Jeff shows his “Who Wants To Be A Millionaire” creativity.

Winners of “Secrets of A Stingy Scoundrel“: Ernest S., and Charlie! Pls send over your mailing addresses for delivery.

Keiju,

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

Follow on Twitter @FinancialSamura and subscribe to our RSS or E-mail feed.

We Have Peanut Butter, But No Bread – Making Do With Less

admin — Fri, 05 Feb 2010 09:10:25 +0000

After a long week, the last thing either of us want to do is cook. We don’t go out because of the rain, and delivery for the 3rd time this week is out of the question. Inglorious Basterds arrives in the mail, and we just seek something sufficient and efficient to eat.

Unfortunately, as we raid through the cupboards all we find is peanut butter, with no bread and spaghetti with no sauce. We also find stale crackers, and a pound of dried pumpkin seeds, but that’s it. Drats! Good thing I keep looking, because I find my canister of protein powder which I forgot I had. The filthy drink contributes today.

We pour stale crackers onto our plates, along side two heaping spoons of peanut butter. To wash it all down, a lumpy and not so delicious vanilla protein shake each. It was nostalgic, eating like college kids again.

FIVE KEY TAKEAWAYS

1) Even if someone says, “there’s nothing left in the house to eat”, there’s always something. We just aren’t looking hard enough.

2) It often takes two things to create an even yummier whole e.g. peanut butter sandwich. We realize why teamwork is highly valued.

3) Food can be a wonderful experience, but hunger can be a pain. We forget that much of the world eats for sustenance, and not for pleasure.

4) All the pain goes away once we sleep. Meanwhile, eating less than normal feels great the next morning. There’s no bloating, money is saved, and although we’re still a little hungry, we have the energy to feed ourselves again.

5) We adapt to what we have. A large house inevitably fills with clutter.

CONCLUSION

Sometimes things just don’t go according to plan. Yet, we all have an amazing ability to adapt to our surroundings and make do with less. It’s refreshing not always wanting more. Dig out your old things and enjoy them again. Call your friends you’ve lost touch with and catchup. Our reservoir of sustenance runs deep. We just have to discover it all again.

Readers, anything you’ve experienced recently where you had to adapt? What did you learn from your experience?

Have a great weekend everyone!

Keiju (Regards),

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

Follow on Twitter @FinancialSamura and subscribe to our RSS or E-mail feed.

The People Asked To Get ROCKED & A Boulder Drops On Their Heads

admin — Fri, 29 Jan 2010 09:00:38 +0000

The Rock Of Gibraltar, Only Backwards

Anybody want to guess what happened on Wed, January 19th right before the market fell off a cliff? If you guessed Obama delivered a politically charged speech to rally for his own support and crucify others, you’re right! On Wed, January 19th, Obama went on national TV to tell the world, “we want our money back” and “if they want a fight, a fight is what they’ll get.” The “they” of course, are “greedy rich” people. The markets immediately started to sell-off and the S&P 500 is now down about 6% since.

Good old fashion class warfare is never good for the economy, neither is continuous political jibber jabber. Do you ever remember a president being on TV as much as our current president? The risk of overexposure is very real, and the record low approval rating for any president at this point in his term shows this. The State of The Union address is supposed to be an opportunity to unify the people. Besides the typical feel-good rhetoric, what I heard was a continued attack on others, protecting personal interest groups, and maintaining giant silos.

YOU SO CRAFTY NEBRASKA

Did you know that Nebraska is the only state in America that won”t have to pay for new Medicaid recipients if the bill passes? What makes Nebraskans more special than other Americans? The answer lies in a special deal the president brokered with Senator Ben Nelson to buy his vote! If Nebraska did have to pay for new medicaid recipients, Senator Ben Nelson wouldn’t have voted for the bill! Good for Senator Nelson for looking out for his people. But tell me honorable readers, how is this legal, and not frowned upon by the rest of the country?

I am absolutely for health care reform. We have an expensive system with 40 million + people who don’t have insurance for whatever reason. We live in a society where if there’s a drug that costs $100,000 to extend your life by 6 months, everybody feels they deserve to take it, but nobody is willing to pay for it. Fine. Since everybody wants the best and most expensive health care, let’s spread the burden among everybody, and not just to the non-Nebraskans!

THE PEOPLE ASK FOR THEIR MONEY BACK AND LOSE BILLIONS MORE INSTEAD

I wonder if the angry mob knows that the more the government is against capitalism, the more we all suffer. With the market down 6% in a week, the people have lost over $40 billion in equity from their 401Ks, IRAs, and general stock investments. Essentially, anybody with anything to invest just got a nice black eye.

The funny thing is, the angry mob got what they deserved. They asked for our president to come down hard on every financial institution, instead of just targeting particular people in power, and the mob is sharing in the pain.

CONCLUSION

What used to be an absolute certainty about Obama’s second term now looks tenuous at best. The “wealthy” were instrumental in his candidacy, and now their support is gone. If the unemployment figures do not improve over the next 12 months, there’s no doubt Obama will also start losing the middle class.

It’s sad, because I along with millions of Americans really wanted Obama to succeed. He has fantastic oratory skills and knows how to galvanize people into action. Obama was going to change dirty politics and turn our ship around. What we’ve learned from the Massachusetts Senate change (which was consistently left for 30 years until Ed died) and the low approval ratings is that the public aren’t mindless idiots.

The people realize that buying votes is wrong and that punishing innocent people at non-TARP banks while protecting AIG and the auto industry who haven’t’ paid back anything is a double standard. The people of America are speaking. The question is, are the people in charge of America listening?

Readers, please read more about the deal Obama struck with the Senator of Nebraska regarding the health care bill. It sickens me to my stomach that he talks about doing the right thing when he’s doing something else.

Do you think Obama knows what he did was wrong? If so, is he thinking that the means justify the ends?

If the employment picture doesn’t improve, do you think Obama will get re-elected?

Why does the government want to punish everybody making over $200,000 and not encourage and reward them instead?

Keiju (Regards),

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

Follow on Twitter @FinancialSamura and subscribe to our RSS or E-mail feed.

Let “Freement” Reign! Spending Paralysis, Material Lust And Obsession

admin — Sat, 02 Jan 2010 15:56:19 +0000

For those of you who don’t know, I’m a recovering car-aholic. Funny enough, the way I deal with my addiction is to go to the BMW dealer! I also go to the Audi, Mercedes, Honda, Land Rover and Porsche dealers too, but only the BMW dealer is on my way home and has an easy parking lot to leave Moose unattended. I wonder if they cut out the free popcorn and diet cokes because of me. Hmmm.

Over the past 3 years, I must have visited the BMW dealer at least 65 times to the dismay of the sales people. They must have a code word for my type, “cheap bastard” or “stop wasting my time you poor SOB” maybe, but I don’t care. Nothing thrills me more than sitting in a brand new, over-priced automobile and inhaling that unbeatable new car smell! After every experience, I deftly try and avoid the salespeople and pick up a new brochure so I can extend the enjoyment at home.

In fact, as a joke I wrapped up the latest Land Rover LR4 brochure for Christmas and gave it to my wife. I told her she should expect a nice shiny black on black beast when we get back to San Francisco. She was kinda amused, not really.

If the salespeople insist on going for a test drive, who am I to argue? But, I make it a point to only waste the time of the most eager of sales people beavers. The fun of gunning a $80,000 BMW M3 every other month is such a thrill! Besides, I hear they get a little commission for every test drive anyway.

NEW OBSESSION

Ever since I spent $1,450 on an impulse buy at The Apple store this September, and subsequently returned the darn thing weeks later, I’ve been obsessed. If we’re in the mall, or some general shopping area, I must pay a visit, or 30+ visits since Sept more accurately! The Genius Bar is wonderful, and all the shiny toys for us to play with for free is such a joy. Like “Moose”, my current iBook G4 is old and slow, but that’s what makes each visit to that much more exciting!

Did you know that over 80% of the computers sold over $1,000 are from Apple? It’s not a surprise to me because their products and customer service rock. Too bad they are just too smart for the US consumer. The current Macbook Pro is getting dated after the the latest Macbook edition. I’m patiently waiting until the latest MBP comes out next year. Until then, more fun visits!

THE PROBLEM

It’s not like I can’t afford a new computer, it’s just that I have spending paralysis on things I don’t absolutely need. I also have spending paralysis on myself. If the gift is for my wife or my parents I’m all for it! I often tease my wife that she always gets the new stuff, and I get her hand me downs, which I get for her in the first place. It makes me happy though, and isn’t that all that matters?

The question I’ve been thinking over and over is whether or not my frugality is being taken too far? Why shouldn’t I drive a nicer car that have car seat controls that actually work and brakes that aren’t so squishee? Why not produce prose on a speedier machine with a more eye-friendly monitor? A $1,000 Macbook Pro just consumes 1% of the “Freedom Fund” but still, I cannot let them swipe my card.

NOT SURE IF I CAN CHANGE

The thrill of material things lies in the anticipation of buying, but not actually going through with the purchase. I’m the type of person who is sometimes more excited a week before the vacation, than during the vacation because every day spent on the vacation is one less day of relaxation! Buying material goods brings down my utility, because the brief feeling of happiness gets consumed by the permanent loss of money.

Sometimes I must have something, and go ahead and buy the darn thing, but return it before the return policy runs out (“Controlling The Urge To Splurge”). Some say it’s malicious to buy something with no intention of purchase. Hak-fooey! Why is there a return policy in the first place? It’s so the consumer can try before they buy or give us consumers a financial self-destruction insurance policy!

I never thought I’d be obsessed with another “freement” (free + enjoyment) store like the BMW dealer. But, thanks to Apple I guess there is. A special shout out to Brookstone for all those wonderful chair massages you’ve given, as well as props to Barnes & Nobles for the magazine experiences. Let freement reign!

Readers, what are your material obsessions and how do you deal with your obsessions to prevent financial ruin?

Why do women go crazy over shoes, clothing, and hand bags, while men tend to splurge on cars and electronics? Is a $5,000 Hermes handbag more ridiculous than a $50,000 BMW?

Do you have spending paralysis on yourself? How do you get out of it and return to center?

Keiju,

Financial Samurai – “Slicing Through Money’s Mysteries”

Follow on Twitter @FinancialSamura and subscribe to our RSS feed.

Time Accelerates, Let’s Not Waste It

fs — Sat, 11 Jul 2009 16:31:00 +0000

Have you ever woken up one day and asked yourself, “Where did all the time go?” We look at old photos and sometimes surprise ourselves with how young, or how good we looked back then. Not to worry, I still say we look pretty good today.

Time is like an oil field which eventually gets depleted. And sadly to say, the depletion rate accelerates! If for simple math’s sake, we were to live till 100, the first year of our life takes only 1/100 of time. Yet, the 51st year of our life is takes 1/50th, and our last year is takes up 1/1, or 100%.

Today’s challenge is to simply accept the fact we only have one shot at life, so we might as well do the best we can. If we have an urge to put things off until tomorrow, just finish it today. If we want to learn a new sport and get better, hurry up and practice! Don’t let your guitar gather dust and that rose go unappreciated.

I strongly believe that financial stability is achieved through a mindset and a way of life. Like trying to lose weight by just going on a temporary diet, it just won’t work in the long run. It takes many simple steps to change one’s mindset. The first simple step is just reading as much as you can about the various situations on the many different blogs here: http://www.wisebread.com/top-100-most-popular-personal-finance-blogs/.

Readers, have you achieved financial stability through a change in mindset? What are the main differences between the new you and the old you?

Keigu,

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

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