Financial Samurai

As a tennis fanatic, it would be remiss of me not to mention the greatest match in tennis history when American John Isner beat Frenchman Nicolas Mahut 70 to 68 in the 5th set last week.  That’s right 70 games to 68 games in the fifth set because one must win by two in the fifth set at Wimbledon.  The 11 hour, 5 minute match spanned over 3 days and finished when John Isner hit a solid down the line two-handed backhand to seal the deal.

The previous record for longest match was at the 2004 French open, lasting now just a paltry 6 hours and 33 minutes.  It is completely unfathomable that a match could last so long, simply because it is unconscionable how Nicolas Mahut could hold serve over 60 games in a row to survive!  The physical endurance is one thing, but what’s most impressive is the mental fortitude both players had to never give up.

LESSONS LEARNED Read more…

Even at 7:30pm the night is hot.  That’s what happens when you go barbecuing somewhere in the South Pacific in the middle of summer.  You can almost taste the grilled chicken from the remnant fumes simmering off the grill.  Dinner is served!

The family gathers around the picnic table.  We take a deep breath and begin to eat.  In just the first bite, my father freezes, tries to swallow and let’s out a little gag.  We ask him what’s wrong, and he shakes his head not knowing.  One of us gives him a glass of water, and still, no change.  My father raises up his hand, excuses himself and says that he has to go to the emergency room.

DOUBT AND CONFUSION

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One of my best friends is blessed with skinny genes.  At 5′ 3″ tall, she weighs all of 105 pounds.  When we go out to eat, she doesn’t just order a glass of iced tea and salad with dressing on the side.  She goes all out with mash potatoes, creamed spinach, BBQ oysters and then a nice juicy ribeye for a main course!  I gawk in amazement at her appetite while secretly groaning at trying to keep up towards the end.  After all, shouldn’t she eat 40% less than me if she weighs 40% less?  Guess not!

Despite my friend’s envious genetics, she isn’t exactly iron woman when it comes to sports and outdoor activities.  After three miles on a 10 mile bike ride, she’s pooped and waves at me to take a break.  Meanwhile, I’m going “lah, lah, lah” in my head, not even breaking a sweat as I soak in the glorious views of the Bay.  I let her catch up and we take a five minute pit-stop where she catches her breath as I go do some stretches and sit-ups.

THE GIMMICK Read more…

If I’ve learned anything in the work place, it’s that most people simply want recognition for a good day’s work.  Pay and promotion are secondary to a simple gesture of a pat on the back or a “well done.“  Yet, why is it that praise is so often lost in the shuffle?  When just saying “thank you” is so easy and cost effective, silence often replaces.

I remember going through a rough stage in my career where I felt invisible.  Like Ralph Ellison’s protagonist in the Invisible Man, even with 1,369 light bulbs shining brightly around his basement room, he still felt like nobody noticed.

“I am a man of substance, of flesh and bone, fiber and liquids – and I might even be said to possess a mind.  I am invisible, understand, simply because people refuse to see me.” This quote has stuck with me for well over two decades since first reading Mr. Ellison’s 1952 classic in high school.

THE MYSTERY Read more…

If you feel like debating, head over to “The Dark Side Of Early Retirement” and get your fix.  I stand by my main thesis that nobody quits a job they love to do.  Someone who is able to find a fulfilling job is one of the luckiest people on Earth.  We shouldn’t make fun of them for being a “loser” as one commenter put it.  Instead, we should figure out what makes them tick!

Everybody gets bored at something after enough repetition.  That’s why it’s key to have many different interests which straddle both the mental and the physical aspects of your life.  No surprise that interesting people have a plethora of interests.  These people also probably have a higher than normal level of commitment to their activities which make them that much more intriguing.

THE TOP 5 “I CAN’T BELIEVE THEY’RE PAYING ME TO DO THIS!” JOBS Read more…

Samurai Nadal

Before every tennis match, I watch a short video on Youtube of a favorite tennis pro to get inspired.  All that goes through my mind are beautiful strokes and luscious sounding *thwacks* each time the ball leaves my strings.  I prepare my tennis bag with the right equipment: grip, Advil, Gatorade, a change of clothes, flip flops, hat, and sunglasses.  My outfit matches, down to my shoes and I say a little prayer.  Essentially, I go through a routine that any pro would go through, pretending to be one myself,  in order to get ready for battle.

Pretending you have arrived, so you can become is a way for us to get in the right frame of mind so we can tackle many of your challenges with full vigor.  If you are not mentally tough on the court, you will defeat yourself before even giving your opponent a chance to defeat you!  In essence, you are your own worst enemy if not properly trained.

Some may think that if you are a pretender, you have a risk of becoming delusional.  There’s no doubt we often over estimate our own abilities, however, I encourage all of us to increase the belief in ourselves.  If you don’t believe in yourself, nobody else will.

PRO BLOGGER Read more…

Looking back at history brings mixed emotions of happiness and fear.  How can it be that 20 years have passed since Pearl Jam was huge and mullets were still in?  It can’t be, can it?  The 90′s don’t seem too long ago, yet so much has happened since.

People say that we’ve just experienced the lost decade, given the lack of returns in the stock market.  I disagree completely.  What’s more important here is ironically nominal increases not “real”.  If you compare what you have now to what you had 10 years ago, I’m pretty sure you have lots more. Heck, some of you may have still been in school or had absolutely nothing but a tit to suckle.  You may have developed a business, or found someone over the past 10 years.  Rest assured you’ve made a lot of progress.

The one thing we have less of is time.  10 years past means 10 years less of life to go.  I think about what I’ve done and what I’m doing in 5 to 10 year blocks all the time.  If I plant the seed now, will the project be worth something in 5 years?  If I slave away at business school part-time, will I be able to leverage the degree and the relationships 10 years down the road?  If I master one guitar song a month, will I be able to play 6 albums worth of songs in 5 years?  The idea is to just start now and stay consistent.  You ignore the short-term tribulations and just focus long term.

The problem is that eventually, we all run out of rope.  That’s when we can only look back and hopefully smile at all the things we’ve accomplished.

A SONG THAT CAPTURES THE QUESTION IN THE TITLE Read more…

If you look carefully around the web, you’ll read scores of articles about the desire to retire early.  Yours truly wishes to finish up no later than 45, as I believe working for 20 or so years is a long enough time.  I’ve done the math with various living and return scenarios and it can be done.  But the question is whether it’s a good idea?  Perhaps not.

Now that the economy is in recovery mode, it’ll be interesting to see how attitudes change towards early retirement.  Will those who’ve short circuited their careers feel the pull to return to full time work and maximize their earnings potential again?  I believe so.  What about all our “lifestyle design” and “digital nomad” friends who had a rough time landing something stable they truly love?  Possibly they’ll come back too.

Those who are able to retire early are often cherished.  I certainly admire those who are able to cut down their desires to the bare bones and live a very frugal lifestyle.  I also admire those who’ve been able to strike it rich very early!  That said, perhaps early retirement isn’t a good idea for the large majority of people.  Let’s explore several reasons as to why people want to retire early, why they exist, as well as understand why it may not be a good idea.  Someone has to argue the other side, so it might as well be me.

WHY PEOPLE WANT TO RETIRE EARLY (IT ISN’T THAT OBVIOUS!) Read more…

Nick Vujicic was born with no arms and no legs.  He admits to us there were plenty of times when all he wanted to do was give up.  Nick didn’t understand the point to his life and therefore wanted to end it.  Thank goodness he’s alive because he’s shared his story with millions of people around the world, inspiring them to keep on going.

Just the other day, someone forwarded me an article about this young woman venting because everybody is a workaholic at her office.  She tells us how incredibly amazing it is that she gets in at 8am and works until 6:30pm everyday.  In other words, she’s asking for praise and sympathy for working normal hours.  The kicker?  She was unemployed for over half a year and just started this job!

Whenever I feel like complaining about how unfair life is, I stop and think about people like Nick who have it just a little bit harder.  Is he complaining?  No.  He is trying harder, and so shall I.  Perhaps so shall we all!  Let’s eradicate the sense of entitlement that lingers among everyone of us; some more than others.  We shall not whine about our jobs or complain why our love lives crumble.  Let’s take ownership of our own actions.  If you are a complainer, please go somewhere else!

Readers,  who inspires you to keep on going?

Regards,

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

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

Here’s an insightful post from Allan from The Philippines.  He shares with us his story about growing up poor and working his way up.  It’s always great to read about international perspectives.  Hope you enjoy!

They say we are creatures of habit. This is especially true when it comes to money. When the going gets tough, it is easier to resort to what’s comfortable. When that happens, your own money habits take over. The only question is – will your money habits get you through and make you rich?

Money Habit # 1 – Playing with money

Learning my money habits started when I was still a young kid playing outside the house on a sunny afternoon. The first money habit I learned was playing with money. Yes, literally. But not with actual money. My friends and I would play games betting on carefully folded cigarette packs looking like play money. A red Marlboro is worth PhP 50 (US 1$). A green local brand “Champion” cigarette is PhP 5 (10 cents). A Philip Morris cigarette pack is worth PhP 100 (US $2).

It was all play money then. And it was easy to get. I only need to wait for my father to finish his cigarette pack and I’d be on my way to earning my (play) money for the day. Sometimes, we even played with coins, taking turns and rolling them on the floor like a dice. Playing with money was fun!

Somewhere between playing with other kids and being conscious on what’s cool, I learned that money can buy me things. But since we were poor, I had to make do with my worn out clothes. After some time I’ve already outgrown it so much, I already looked like Winnie the Pooh.

It’s not so much about other kids having better clothes. It was more because I was not able to play outside as much as the other kids. My mother would always remind me to do my house chores. Wanting to go out and play instead, I would reason out “how come the other kids are not doing any chores?” To which my mom lovingly responded,

“Because we are not like them. They can do whatever they want because they are rich. We are poor. ”

That was the first time I realized we were different from other people. We were poor. I began to notice how worn out my clothes and shoes are. I remember even going to school with no shoes on.

That’s one lesson I took to heart. If you don’t have money, you are poor. If you are poor, you need to work to have some money.

Money Habit # 2 – Working for money Read more…

The poker game ends and the team of entrepreneurs and new media types say their good-byes.  I leave up $51 bucks, which is a nice return given my $100 buy-in, but it’s a pittance against others leaving with wads of cash big enough to substitute for butt-cheek implants if so desired.

The last time I was out until 3:30am was when George W.  proclaimed we won the war.  There are so few cars on the road, when I do see one, I wonder what trickery lies ahead.  There’s a certain tranquility one feels when others are sleeping.  Dim yellow lights glow in San Francisco’s misty haze.  Nobody bothers you because nobody is conscious enough to care.

Almost home, I decide to instead drive towards the Bay and take in the silence of black murky waters and a revolving spotlight that perpetually emits from Alcatraz.  I wondered if this calm is how Frank Lee Morris felt before he tried escaping The Rock some 48 years ago.

TAP, TAP, KNOCK Read more…

The following is a guest post from Neal Frankle at Wealth Pilgrim.  Neal is a dedicated father, insightful financial adviser, and honorable Yakezie Challenger who always writes with a breath of fresh air.  You can join his 2,500+ followers on Twitter @NealFrankle.  Enjoy!

Failure is not only a necessary part of life, it can be a beautiful part of life.

This may sound like crazy talk.

After all, if you are a hardworking person, you work hard because you want to succeed, not fail.

And failure stings.

It hurts.

Man….it hurts.

That pain is real….but despite that temporary pain, those set backs are likely key ingredients to your future success. And the success I’m talking about dwarfs financial or career gains.

Let me explain by telling you about an experience I had several years ago.

BACK IN THE MOTHERLAND Read more…

The Mon Oda (Crest)

Dear Yakezie Group,

It’s been just over a month since the Samurai Alexa Ranking Challenge was announced, and I’m pleased to report we’ve made tremendous progress!  With 35+ members strong, we are actively helping each other achieve our respective goals.  I’d like to use this opportunity to recognize several Yakezie members for their achievements and initiatives in helping the team.

* Daniel-San from Sweating The Big Stuff took the initiative to compile the list and keep track.  His efforts have in turn created a home for us members to visit once a week and get pumped.

* @Elle_CM from Couple Money has been amazingly selfless in retweeting my posts and many other posts.  She is exactly the type of member the Yakezie Group seeks.  @FinEngr created a Yakezie Twitter Group to keep track of us and follow.  Pls follow so the group can follow you back.

* Monevator, The Amateur Financier, Evolution Of Wealth created weekly wraps to specifically highlight posts from the Yakezie Group.  Meanwhile, Money Funk wrote a derivative post on how to increase your Alexa ranking.

* Eliminate The Muda and Planting Dollars have busted through their 200,000 goal and should obviously now shoot for top 100,000!

THE RULES HAVE CHANGED AND WE WILL ADAPT Read more…

What a coincidence that both Valentine’s and Chinese New Year fall on the same day.  In fact, if you’re Chinese who celebrates Valentine’s Day, this could be the luckiest year of your life!  For those who aren’t, you still have 20 more years until 2030 to change your identity.  Let’s look at a couple of similarities between Valentine’s Day and Chinese New Year.

COLOR: Red is the default color for love and happiness.  Love > Money = Happiness as we explored recently.  If you’ve got love in addition to money, well then, you’re really one lucky barbecue pork bun!

TRADITION: The Chinese give young-ins “hong bao”, or red envelopes stuffed with money to sway them to be good.  Lovers also give their honeys money indirectly through dinners, flowers, chocolates, and spa massages, to sway them to do…. you decide.

Chinese civilization has been around for over 5,000 years.  Perhaps they are the original inventors of Valentine’s Day, spaghetti, sushi, and the running man dance.  Hmmmm.

The Samurai Fund: We are killing it team!  We didn’t capitulate on Toyota Motors, and dog poop Monster Worldwide wins this year’s #1 Super Bowl commercial.  TSF is up 0.13% year to date vs. the S&P 500 down 3.55%. As a result of our massive outperformance in this rocky market, Warren Buffet is giving us another $100 million to invest.  With these new proceeds, I invite Flexo to be our newest member.  His selection is Flextronics (FLEX), a vertically integrated electronics manufacture based in Singapore.  Welcome aboard!  (Click TSF link for updated chart.)

Week In Review: Gotta say, it was fun auditioning for Cosmopolitan Magazine with “How To Get Your Super Motivated Boyfriend To Marry You“.  The post turned off some women, found support from other women, while speaking to some fellas as you can see in the comments.  Of course, when the guys went back and asked how their girlfriends felt, they all disagreed.  After the 5th year of dating, have a read again and share your thoughts.

Every guy has some degree of SMB in them.  It’s not possible to always feel secure, never have any pressure, and marry the girlfriend by year two.  The 50/50 equal effort split is also just a pipe dream.  Someone will always feel more affection than the other.  Persecuted men out there, this one’s for you!  Helping ladies help men so men can help ladies sounds like a win-win scenario.

Rest of the Month: We’re going to slowly blend back into more personal finance related topics.  I’m happy to present a couple more guest posts, and at least one more book review and giveaway to readers.  As part of the Yakezie Alexa Challenge, I will continue highlighting your work here and on Twitter.  Perhaps you will do the same.

HIGHLIGHT POSTS OF THE WEEK Read more…

Brad Helps Rebuild NO

First of all, congratulations to the Saints for winning the Super Bowl!  The odds makers were so off favoring the Colts by 6, and setting a ridiculous 57 over/under total point line.  Someone out there made a nice chunk of change.  Was it you?

For some reason, there is a thumbs down movement regarding this year’s commercials.  I don’t think people were paying close enough attention.  If they were, they’d be raving!  The underlying theme of my top five picks revolves around love, be it loving something, or falling in love.  You’ll see what I mean.  Enjoy!

SAMURAI’S TOP 5 SUPER BOWL COMMERCIALS FOR 2010 Read more…