Bonus Book Giveaway Box 1

I’ve been waiting for the right time to create a contest giveaway for many of my personal finance books I’ve amassed over the past year, and now is the time!

I’m participating in this massive online sale of some $1,087 worth of personal development products for just $97.  If you got personal issues, this sale is for you!  When you buy through Financial Samurai starting at 9amPST/12noonEST, you will be eligible to get a bonus box of personal finance and investment books you see in the two pictures to the right.  Additionally, $5 of each sale goes to the Kidney Foundation, whose goal is to educate and prevent the disease!

Contributing Personal Develop Authors: Leo Babauta, Charlie Gilkey, Pace & Kyeli, Jonathan Mead, Steve Kamb, Jules Clancy, Ev’Yan Nasman, Ali Luke, Benny Lewis, Adam Baker from Man Vs. Debt and Karol Gadja.  All these folks make their living online and specialize in developing eProducts that help you become a better person.  They depend on their online income to survive, which means there’s a minimum quality standard otherwise these guys won’t last for the long run.

Product Topics: Entrepreneurship, Minimalism and De-cluttering, Getting Out Of Debt, Travel, Learning Foreign Languages, Building Self Confidence, Cooking,  and more.

Titles:

Focus by Leo Babauta ($35)

Momentum Kickstarter Kit by Charlie Gilkey ($47)

Reclaim Your Dreams by Jonathan Mead ($47)

52 Weeks to Awesome by Pace & Kyeli ($52)

5 Ingredients | 10 Minutes (Cooking) by Jules Clancy ($77)

Rebel Fitness Guide by Steve Kamb ($37)

Fear-Crushing Travel Guide by Farnoosh Brock ($57)

Overcoming the Fear of Uncertainty by Sean Ogle ($47)

The Creativity Toolbox by Ali Luke & Thursday Bram ($47)

Make Sh*t Happen by Jenny Blake ($47)

The Language Hacking Guide by Benny Lewis ($67)

Sex, Love, Liberation by Ev’Yan Nasman ($47)

Learn More, Study Less by Scott Young ($67)

The Less Work, More Harmony Relationship Guide by Cara Stein ($47)

How to Become an Advanced Early Riser by Steve Aitchison ($37)

Cheap Family Fun by Kim & Jason ($52)

Discover Package by Barrie Davenport ($59)

The Art of Relaxed Productivity + The Power of Positivity by Henrik Edberg ($44)

Mind Control Method: How to Get What You Want by Karol Gajda ($47)

Sell Your Crap by Adam Baker ($47)

When: The sale begins Monday June 20 at 12 Noon EST and ends Thursday June 23 at Noon EST.

Bonus Book Giveaway Option 2

PHYSICAL BOOKS BONUS!

I’ll be giving away two boxes of books to two people who buy via Financial Samurai and comment what is the one personal development areas they plan to work on for the rest of the year.  Each box contains about 10 books valued at some $200.

I’ve read every single one of the books that I’m giving away, and I’m pretty sure that if you read all of them, you’ll gain a healthy amount of useful knowledge and added confidence.  The sale and contest ends at 12noon EST on Thursday, June 26th.

Thanks for supporting Financial Samurai and I hope you find all the personal development and personal finance books helpful!

To order $1,087 worth of online personal development books for only $97 and a good chance to win one of the two bonus book giveaways click here at 9am PST / 12noon EST Monday, June 20th.

Best,

Sam

It’s been a hectic second week back after labor day and I’m so encouraged by what I’m seeing in the economy.  It’s as if the world decided to suddenly get back to work after a long dormant summer.

The one tip I want to leave you guys with is that no matter how rich your client, your boss, or your prospect is, they cannot resist free.  It doesn’t matter whether you take them out to lunch, buy them a drink, take them to a baseball game, or send them a book.  He or she can be worth hundreds of millions of dollars, and that small $20 gesture will do the world for you!

You may think it’s odd that you are giving something to someone who can afford anything, but you are mistaken.  Those who are richer than you and can afford anything are generally the ones who are always giving.  Hence, as soon as you give them something, you’ll stir up their appreciation that they never knew they had.

In the spirit of free, here are some of the posts out there which do just that.

Yakezie Giveaways Galore!

* Elle at Couple Money is giving away a free laptop for her first year anniversary.

* Kevin at Invest It Wisely is celebrating his 6 month anniversary with various prizes.

* Mrs. Accountability at Out of Debt Again is celebrating her 3 year anniversary with $800 in prizes thanks to various friends.

* Yakezie.com hosting our second book giveaway, How Rich People Think thanks to Elle.

* Christian PF is hosting a iPod Touch giveaway.

* The three winners of the Financial Samurai The Simple Dollar giveaway are: Jason @ Redeeming Riches, Suba @ Wealth Informatics, and Little House.  Please send me your mailing address by Monday, Sept 20th or else I will announce new winners.

Go ahead and check the giveaways out.  I love being part of this community and have entered all three giveaways myself!

Keigu,

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

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

Author: Robert Pagliarini, author of The Six-Day Financial Makeover and president of Pacifica Wealth Advisors.  You may have seen him on Dr. Phil or 20/20.

Publisher & Book Info: St. Martin’s Press, hard cover, 301 pages, $25.99.

Review: The main premise for Rob’s book is that everybody’s day is split into three eight hour parts: work, sleep, and everything else.  Rob’s hope is to get you motivated to do more during the everything else portion to maximize your own potential.  First of all, I don’t know anybody who only works 8 hours a day.  10 hours of work a day seems more realistic.  Second, who gets to sleep 8 hours a night?  Sounds like elusive bliss to me.   Let’s assume 6 hours of nightly sleep instead, which ironically leaves the same 8 hours of time for everything else!

The Other 8 Hours is an enjoyable read because each chapter contains not only practical advice, but real life inspirational stories to help motivate readers to action.  Too many times we just come home, plop on the sofa, and do nothing.  That’s no way to live.  Below are Rob’s top 10 things he recommends doing with your spare time to help increase wealth and purpose.

Top 10 Creator Channels:

1) Blogging

2) Inventing

3) Writing Books, Screenplays, Music

4) Starting A Company

5) Reselling, Affiliating, and Licensing

6) Taking Advantage of Fads/Stunts

7) Working for Stock in a Company

8} Advancing or Jumping Careers

9) Freelancing

10) Turning Hobbies into Income

Blogging definitely has the potential to earn you a few shekels with enough time and dedication.  I’ve daydreamed about sitting on my yacht somewhere in the south of France writing to you about saving money on champagne and caviar!  Then reality sets in.  However it’s always good to dream.

The item that most interests me is #2.  Rob dedicates a chapter to each of his 10 creator channels, which is very useful because many don’t know where to start.  Rob provides a road map, highlights the pitfalls, and ends each chapter with actual resources you can use.  For inventing where do you go to develop a prototype, receive independent reviews, and hire an agent?  Many answers are all addressed.

WARNING THAT NEEDS FOLLOWING

One of Rob’s key messages, which I wholeheartedly agree, is to NOT jump head first by quitting your job and investing everything you have in your business idea.  I’m sure there will be plenty of those will disagree with this premise.  How can you succeed if you don’t put everything you have into your idea?  You can, but simply during the other 8 hours!

We always hear the tremendous entrepreneurial success stories, but we seldom ever hear of the failures.  Trust me, there are tons of failed ideas, and if you were to invest everything you have in a failed idea, it’s going to take a lot for you to get back to your previous financial state.  Be methodical in your approach, test out your product thoroughly, and make sure you see signs of success before you quit your full time job.

CONCLUSION

Who wouldn’t want more time, more money, and a better life?  It’s simplistic to say a book will give you all that.  However, The Other 8 Hours helps provide a catalyst to get you going.  You won’t just read a book that tells you what to do.  The Other 8 Hours helps shows you how.

WIN ONE OF TWO BOOKS – CONTEST ENDS ONE WEEK FROM TODAY

* Tweet and follow for one entry.

* Sign up for our RSS or E-mail feed for one entry.

* Comment about a project you are working on during your other 8 hours for one entry.  Do you think quitting your job to dedicate everything to your side project makes sense?

* If you have a blog, link back and highlight the contest for three entries.

Regards,

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

Author Bios: Manisha Thakor and Sharon Kedar have their MBA’s and CFA’s and are the coauthors of “On My Own Two Feet: A Modern Girl’s Guide To Personal Finance.”

Publisher / Physical Description: Adams Media.  Paper back.  148-pages of easy reading.

The Summary: With a tag-line of “how to talk money with your honey,” how can you not like a book with this kind of wit?  Personal finance books tend to be a little bit mundane and redundant, but not so with Manisha and Sharon’s latest offering.

The first point of interest simply lies on page two.  All page two says is “To All Women…”  As I am not a woman, I immediately began preparing myself for some male criticism.  Does ‘To All Women” really mean “Stay Away All Men”?  To my relief, the real meaning of page two is about empowering women to become financially independent on their own.

Getting financially naked really is about having as clear of an understanding of each partner’s finances as possible.  The authors don’t want women to one day wake up realizing all their money is gone after their husband invested their finances in some unscrupulous investment.  Women need to have a full grasp of each others finances so that there are no surprises.  Even before marriage, our authors go through steps to discover whether a couple is financially compatible.  Financial matter shouldn’t be taboo among serious couples.

“The Five Power Steps To Financial Success” provides useful tips on dealing with the five key lifetime expenses: home, car, retirement, kids, and extended family.  For better or worse, you get the family too!  One of the most eye-popping nugget of information is that the average cost to raise a child from birth to 17 is $184,000!  Move to NYC or San Francisco, perhaps that figure is closer to $300,000.

The book concludes with some simple tips on savings and investments, namely with the objective of keeping things simple.  But, this is not a book about savings and investments, it’s a book about improving communication. The Appendix contains a wonderful list of answers to scenario questions such as “Should we combine bank accounts now that we’ve moved in together” and “What do we do because I’m a saver and he’s a spender?”

In summary, “Get Financially Naked” is a wonderful little book for women and even men to read.  The key message is about improving communication between couples so that money becomes a natural point of discussion.  For those women who find opening up about finances to be especially difficult, this book is especially for you!  For guys, it’s like reading the occasional Cosmopolitan magazine.  Seeing a different perspective helps widen your own perspectives!

GIVEAWAY RULES: TWO PRECIOUS BOOKS!

* Share Your Thoughts On: Why do you think women have a harder time opening up about finances than men?  Why is talking about your finances with someone you care about so taboo?  Should couples reveal all their financials before marriage, or should that not matter since the union is “for richer or poorer”?  Is not talking about money a cultural or gender phenomenon?

* Tweet & sign up for our RSS feed and comment that you’ve done so.

* Entry Deadline is Saturday, January 23rd.

You can learn more about the book here, or buy the book directly from Amazon: Get Financially Naked: How to Talk Money with Your Honey

Keigu,

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

Publisher: The Penguin Group.  Hard cover. 257-pages. Price: $26.

Author: Charles Farrell, JD., LL.M., investment adviser with Northstar Investment Advisors, in Denver.  He writes the “Retirement Roadmap” column for CBS Moneywatch.

Review: “Your Money Ratios” sings to me!  For someone who loves using ratios such as the 1/10th rule for car buying, and 30/30/3 rule for home buying, I absolutely adore this book.  Charles’ writing style is very balanced and easy to understand.  When it comes to math, many people, including myself fall asleep.  But, if you can just do simple division and multiplcation, this book will keep you on the right path towards financial security.

Charles’ “Unifying Theory of Personal Finance” is his core philosophy that all decisions you make should help move you from being a laborer to being a capitalist.  In other words, make money work for you, and not the other way around.  It’s important that with every single monetary decision you make, you ask yourself will this help you become a capitalist or not.

Capital To Income Ratio

The first ratio Charles introduces is the Capital to Income Ratio (CIR).  Capital is defined  as the savings in your 401K, IRA, annuities, CDs, cash value of your life insurance, savings, equity in commercial and rental real estate, and the fair market value of any business interests.  Capital does not include the equity in your primary residence because it does not generate income.  The real return of your home is the rent-free use of the property once you pay off your mortgage.

The underlying goal is for everyone to have a CIR of 12 by age 65 i.e. $1.2 million in capital if you average $100,000.  With a CIR of 12, one should be able to retire financially secure while living off 80% of your pre-retirement income due to the returns from capital and social security.  While working we probably live on about 60% of your actual income due to expenses such as one’s mortgage, which will no longer be there when we retire.

Your finances hit a tipping point when your Capital to Income Ratio hits 2.  At a CIR of 2 your earnings from you capital will generally add more to your wealth than the amount you save each year.  Over a 40yr savings cycle, you contribute 30% 70% are from earnings.

The Savings Ratio

To get to a Capital Income Ratio of 12, Charles highlights on two savings rates: Save 12% of your annual income ever year from ages 25-40, and save 15% every year after wards.  The math works, and obviously the math works even better if you can save more of your annual income.

To clarify, the Charles’ 12% and 15% savings ratios include your 401K contribution..  Charles believes that your 401K is key to financial independence due to employer matches and tax free contributions.

I challenge readers to max out their 401K and save an additional 12-15% of their gross income. Mentally write off your 401K amount, and pray it’s there at age 59.5.  My strong belief is that your net worth is an illusion, except for the cash and most liquid of assets.

Your Debt Ratios

One needs to differentiate between income-producing debt and income-reducing debt  When you take on debt, you need to leave enough for you to meet the savings ratio  Owning a home and paying of your debt increases your retirement income and helps move you from laborer to capitalist.  “Deemed Income” is the investment income you get to keep in retirement because  you don’t have to use that income to pay a mortgage or rent.

Education debt, is good debt, but aim to keep it to 75% or less of your average 10 year gross income.  Financially, it is better for your kids to take on the debt than you provided they stick to the Education Debt Ratios.

Charles, like others believes there is an education bubble.  Tuition costs are ridiculous and will eventually fall because income growth doesn’t support the cost.  Charles advises not saving for your kids education before you save for your own!  If you don’t save enough for yourself, your kids inherit your financial burden and have to take care of you.  Your financial independence is a great gift to your kids.

Your Investment Ratio

It’s all about playing offense (stocks) and defense (bonds) to come out ahead.  Charles recommends a permanent 50%/50% allocation your entire working life.  I find this too conservative.  I like following your age as a percentage to allocate to bonds i.e. if you’re 35, somewhere around 35% of your investments are in fixed income securities.

Charles is super risk adverse because he wants to avoid big losses.  As an investment adviser, and given his age, I have a feeling he has seen tons of carnage over these past two investment cycles.  A 50% portfolio decline requires a 100% increase to get back to even.  A 80% portfolio decline requires a 400% increase!

Social Security – The Point of Contention

Charles fears Congress will go overboard in fixing SS, and create one large wealth-transfer.  Despite the “fix”, SS will survive. Lower paid workers get much more out of the system than higher paid-workers, based on their actual contributions.  It’s important for everyone to understand the basics of SS, to not change the program from a long term retirement program into a welfare program.

Your FICA tax is 7.65% from you, 7.65% from employer of which 12.4% goes to SS, and 2.9% goes to Medicare.  You need to work for at least 10 years for a covered employer before you can receive benefits.  Cap is on $106,800 of the income you pay, thank goodness for many.  SS adjusts for inflation is great.  And if you’re married, your spouse has the right to benefits equal to the higher of his or her OWN benefit, or one half of yours.  Not bad!

By the way, if you were born after 1960, the full-retirement date to receive social security benefits is 67!  You can decide to take reduced benefits starting at age 62.

Conclusion

“Your Money Ratios” has the potential to be one of 2010′s best sellers in the personal finance space. I love everything about the book, from the tone of the author, to his simple instructions, to the way the book is packaged.  There’s no doubt in my mind that if you follow Charles’ instructions, whether you are 25 or 45, you will be able to reach financial independence by 65.  Go to your local bookstore or Amazon and check it out!

Go to www.yourmoneyratios.com, type in the code 778811 to check out your ratios and see where you stand!

BOOK GIVEAWAY RULES: Two Books To Win!

* Comment on: What your current Capital to Income ratio is, and whether you think it’s realistic to reach a CIR of 12 by age 65.  Feel free to provide your thoughts on why you are satisfied or unsatisfied with your current status and what the right CIR is.  Are you maxing out your 401K, and if so, how much more of your gross annual income are you saving?  Do you believe full Social Security benefits will exist in 25-30 years?

* Twitter: Retweet and share with your friends.  Ideally, you will read the review and share your comments.

* Enlist: Sign up for our e-mail or RSS feed.  Let us know in comments.

* Do all three and you have a higher chance of winning.  I really want this book to go to someone who really wants it, and will read every page and take it to heart.

Keigu,

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

Twitter @FinancialSamurai and subscribe to our RSS feed.

The first winner is Eric, a senior from UCLA!  Eric commented sincerely about his concerns post graduation, and whether or not it is a good idea to go to a “2nd tier” business school or just work for whatever company that hires him first.

We’ll be working with Eric to strategize a plan after UCLA and coach him through the process of finding a job in his desired field of finance, or applying to business school.

A Special Thanks To The Following For Retweeting:

@EvolutionWealth from Evolution of Wealth

@MinorityFortune from Minority Fortune

@WiseBread from Wise Bread

@MoneyNing from MoneyNing

@Green_Panda from Green Panda Treehouse

@Studenomics from Studenomics

@BudgetsareSexy from Budgets Are Sexy

@BrianScheur from My Next Buck

@SarahTownes

@CJBowker

We’ve decided to keep the competition open for another week to see if there are any other folks out there interested since we said there would be two winners!  How many times have you gone on Craigslist to inquire about that something you’ve wanted, to only find out it was sold!  We hope by extending the competition we’ll be able to give more people a chance to discover our giveaway.

Twitters please feel free to e-mail me as well about your interests, because besides being so generous about retweeting, I’m not entirely sure whether some of you are at this time interested in applying to b-school.

We’d love to help so don’t be shy.  Happy Halloween!

Related Posts:

“Financial Samurai $1,000 Giveaway And Your Chance To Make Millions Over Your Career”

“Go To Grad School, Get Rich Or Die Trying”

“Survey Says: Get A 3.9 GPA and 1,300 On Your SAT’s And You’re Set For Life”

Best,

Financial Samurai – “Slicing Through Money’s Mysteries”

Twitter @FinancialSamurai and subscribe to our RSS feed.

“It’s not whether you have your MBA, it’s where it came from,” writes John Micklethwait, Editor-In-Chief of The Economist. I’m sure on at least two levels, he’s upsetting people. On one level, those without MBA’s are going to find it presumptuous that getting an MBA is a foregone conclusion.  On another level, there are thousands of MBA grads who didn’t attend the top tier schools who will take offense as well.

John is smart to be so opinionated because after all, the people who will be buying his magazine are those who have always wondered whether getting an MBA is a good idea.  He forces the assumption that if you picked up his magazine, you must get an MBA, and not just any MBA, but one of the top schools from his polls.

I don’t entirely agree with John, but let’s face reality, getting an MBA is gradually becoming the new standard for newcomers to the world of finance because some go-getter decided it was the right thing to do and succeeded to get others to follow.  The MBA is also too expensive to not try and go to the best school possible (although it’s not the end of the world).  The inertia is too strong to reverse now!

Here are some of the takeaways from the magazine:

1) The average MBA graduate from all schools in the world earn about $90,000.  European MBA graduates earn $107,000, compared to $70,000 in Asia.

2) The Top 10 US MBA schools have an average salary + bonus figure of $120,000 – $125,000 post graduation.

3) All six of the American schools in the top ten have average GMAT scores of over 710 (out of 800). In contrast, students at London average 693, at IESE 685 and at IMD just 675.

4) The rankings are based on what the students want: increased pay, to open new career opportunities, develop a larger network, and personal development.

5) “Cheap” programs regularly cost well over $100,000 after accounting for lost wages, tuition, books and living expenses.  More emphasis should be put on part-time programs and their benefits given the costs.

SAMURAI $1,000 READER GIVEAWAY

I think it’s pretty clear by now there are enormous monetary benefits of getting your MBA from one of the top schools.  We highlighted last week those with graduate degrees have net worth levels 160% higher than those with only bachelor degrees. If you want to make more money, know that an MBA helps your cause tremendously.

The giveaway we are proposing is $1,000 worth of consulting advice to give you the highest chance of getting into your dream school!  Getting into a top tier business school could mean the difference of making millions over your post grad career.  Go to any MBA consulting service, and they often charge much more.  In fact, I was surfing the web and found that a site called “Personal MBA” charges $1,500 to coach someone 2 hours a week for a month for someone to get a “Personal MBA!” (not a real credential, but a great service and good idea!).

What We (Editor and I) Are Going to Do For You:

* We are going to be brutally honest and tell you whether your application has a chance or not.  Your parents and friends are nice, but can’t be trusted to tell you the whole truth!

* Good or not, we will optimize your resume, essays, and overall application.  You need as many objective eyeballs reviewing your application as possible!

* We will conduct two mock interviews and provide communication tips you need to work on, because frankly, communication is one of the key deciding factors.

* We will will be as involved as you want us to be and are committed to spending up to 8 hours just on your application.

We Think We Are Qualified Because:

1) We both have MBA’s from a couple of the top 10 school listed in The Economist’s rankings above.  We’ve also been accepted to several other business schools and have a proven record for success.

2) We have interviewed over 150 MBA candidates in our careers post grad and more than 400 candidates if you include undergraduate candidates.  In fact, I (FS) was just at a Haas Berkeley recruiting fair last month for 3 hours.  We are the end game (a post MBA employer), and have a solid grasp of what an ideal candidate looks like.

3) We know how the admissions process works and what they look for.  How?  We have developed friendships with senior people in the admissions department.

We might be small fish in the personal finance blogosphere, but believe me when I tell you one of us, was a very senior executive at a major Fortune 500 firm, and I am no dog chow either.  We genuinely just want to help and are not driven by money as evidenced by the lack of ads on the site.

Maybe you’re not interested in getting your MBA, but you have a friend who does. Please feel free to let them know.

To Participate Simply Do One or More of The Following:

* Provide a comment as to why exactly you want to get your MBA and why you disagree or agree with The Economist’s ranking.

* Twitter this post and let me know you’ve done so.  Our address is @FinancialSamura

* Tell someone at a major media publication about our giveaway and let us know who.  Frankly, if this post gets picked up by The New York Times, you win!

* Invite friends to Financial Samurai by highlighting this post, or any post in our archives on your Facebook “What’s On Your Mind?” box.  Have them comment “(Your name) sent me” and any other thoughts as evidence.

Winners Will Be Announced on Sun,  Nov 8!

There will be one main winner, and one minor winner based on who are the best publicists.  Maybe nobody will be interested, but maybe the internet will work its magic and find people who believe in the degree, and care about their careers, especially since round 1 applications are due in November.  It will truly be interesting to see how this promotion evolves or not, and will be the topic of a future post.

People are spending thousands of dollars on GMAT courses as well as personal consultants. High GMAT scores alone aren’t good enough.  In fact, I’ve seen plenty of sub 600 GMAT scores and poor undergrad GPA candidates get into top schools. The difference is your overall application, communication skills, and whether you have a connection helping you succeed.  This is our attempt at evening the odds!

If you build a relationship with us, by the time you graduate, you’ll have some of your biggest champions introducing you to various people in the private equity, investment banking, management consulting and start up arena.  How much is your future worth?

Related Posts:

“Get A 3.9 GPA and 1,300 On Your SAT’s And You’re Set For Life!” (a first chance at school)

“Go To Grad School, Get Rich Or Die Trying” (a second chance at school in case you messed up the first time)

“To MBA or Not To MBA” (what went through my head when I was deciding whether to go)

“The First $1,000 MBA Giveaway Winner Is…..”

Keigu,

Financial Samurai – “Slicing Through Money’s Mysteries”

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