Financial Samurai

“Every battle is won before it is ever fought.”

This was the infamous line said by Gordon Gekko in the popular 1987 film Wall Street. Derived from Sun Tzu’s Art of War, a 2400-year-old Chinese text on military strategy, the teachings of this tactical mastermind have proven useful in various aspects of present-day life besides warfare.

Although Sun Tzu’s Art of War is studied most religiously by military commanders, political leaders, and corporate executives, the concepts are scalable to conflicts as minuscule as your struggle with debt. Like in war, where the objective is to overcome the enemy resistance, it is everyone’s goal to conquer their personal debt.

Debt is the bad guy. We are the good guys. The road to financial independence is a righteous path where we’ll have multiple encounters with debt – a merciless obstacle that seeks to consume us. Luckily, an old man from many many years ago jotted down some powerful advice that may serve the purpose of securing a victory against debt.

Universal Debt Teachings Read more…

Well, well, well.  Not everyday does a $300 million dollar mega yacht stop by the San Francisco Bay Area!  The creatively named “A” yacht is owned by 38 year old Russian billionaire Andrey Melnichenko and his lovely supermodel wife Aleksandra!  Andrey made his money in fertilizer, banking, and energy and is worth a reported $4.4 billion dollars.  Interest alone on $4.4 billion at 4% is over $178 million a year!

The “A” looks like something out of a James Bond movie.  Can you imagine all the crazy parties on this bad boy?  Wow!  I rode my bike to the very north end of San Francisco to take a look and boy oh boy is it big.

Some nice mouth watering yacht stats for all you billionaire wannabes out there! Read more…

Are you afraid of hard work?  I’m not.  You can lock me in a room, tell me to demolish it down to the studs and build it back up again.  I’ll do it even if there’s only a sliver of hope of something good waiting at the end.  As many of you may or may not know, Yakezie.com will launch this Monday, August 16th.  A tremendous amount of hours have been spent formulating the game plan, working with Chris the web guru to implement features, and create content.

Everything always seems so calm on the outside, but behind the scenes there is nonstop debugging, planning, and trial and error.  Major respect to anybody who has ever tried to start any collaborative project!  Our Google Groups is alive with discussion, and the ideas are endless.  Yet, ideas are useless without implementation.  I often wonder how on earth we’re supposed to coordinate the talents and ideas of so many.  I’m worried that great ideas will fall by the wayside because we’re too focused on narrow objectives.  As a result, we’re going to do our best to capture them all.

With the August 16 deadline, I feel like I’m back in school, working on a project that will determine my final course grade.  Yet in reality, there’s simply no fear of failure except for the fear of not doing.  What a pity it would be to never launch Yakezie.com with so many diverse and passionate members, each of whom have something special to offer.  After all, the Yakezie.com is not for me, but for all the members who participated in the challenge, as well as all the potential new readers out there who are looking for unique insights.

Weekends are meant for relaxation, but not this weekend.  It’s crunch time and I’m going to kick my ass to ensure that everything goes according to plan.  See y’all over at Yakezie.com this Monday!

Readers, for those of you who run multiple sites any tips on how to manage?  

For those who only have one site, have you ever thought of starting another site and implement what you’ve learned from your first site?

When was the last time you kicked your own ass at something? Haiiiii yah!

UPDATE: Yakezie.com is up and we are currently working out all the kinks.  Please feel free to share your feedback!Regards,

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

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

I don’t talk much about my finances, but I will tell you that I’m in the process of refinancing a couple mortgage loans down by 1% each.  The interest savings is tremendous, making me very positive about consumption trends going forward as 10 other people I know are also refinancing.  It behooves you to at least call your local bank and check their latest rates.

It does make me wonder with the strength of the stock markets lately, how the bond market can still be so frothy to provide such record low interest rates.  Do remember that the higher treasury bond prices go, the more yields fall.  Could there really be deflation on the way?  I highly, highly doubt it but the bond market is telling us otherwise.

To humor our minds, lets say there is deflation on the horizon.  What would you do with your spending habits?  You’d probably stop consuming due to the assumption that whatever it is you want to buy will be cheaper in the future.  As a result, you’d hoard cash and de-leverage.  Bingo, that is exactly what plenty of folks are doing, including myself.  This self perpetuating mentality is very damaging to economic progress.  In addition to delaying consumption, you will probably seek ever higher yields.  With the 30 year treasury yielding 4% right now, it sure looks like a buy compared to only 2.85% on the 10 year.

When talking about deflation, keep in mind that money is simply a medium of exchange.  The more money currency you have, the better as the strength of your currency improves vis a vis the goods and services which it can buy.  Frugality really is en vogue again, and I just can’t wait until Samurai September when I spend the whole month buying nothing!

POSTS THAT CAUGHT MY EYE: Read more…

This is a guest post written by Mike, a financial planner / web entrepreneur who is pursuing his dream of running his online business. You can follow his progress at The Financial Blogger (RSS Feed) and read his other financial blogs at Green Panda Treehouse (RSS Feed) and Intelligent Speculator (RSS Feed).

3 years ago, I was told by many bloggers: “You will never make money blogging. And if you do, $200/month will be your highest peak ever”.

Three year ago, The Financial Blogger was averaging 500 visits per month and I was ecstatic when I made my first deal of $10 for a link.

Three years later, I now run three financial websites, bought 2 of them and flipped a blog within a year. I am now able to work 1 full day per week on my online business (while I still have to keep my “day job” in the meantime). I really like buying and managing finance blogs as I think it is currently one of the best investing opportunities we can find.

When I asked Sam if I could write a guest post for Financial Samurai, he asked me to include more details on how I appraised blogs and how do I decide or not to send $10K over the wire (or more!) simply to buy a “.com”.

Look at Blogs as a Real Estate Investing Opportunity Read more…

Here’s a short 10 minute video I stumbled upon which eerily highlights several things I do and why (ie play guitar), as well as touch upon reasons why some people are willing to do things for free, and others strongly consider giving up big salaries to just work on a hobby.

NODDING MY HEAD Read more…

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

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…

The LA Lakers and Boston Celtics have met 11 times in the finals.  Combined, the two teams have won an incredible 32 championships in the NBA’s 63 seasons.  Purists will note that only 10 of LA’s 15 championships came in LA, while the other 5 were in Minneapolis from 1949-954.  Either way, there’s no doubt that the Lakers are one of the best teams in NBA history.

How is it that two teams alone combine for about half of all championships in league history?  The answer is simply superstar cities which offer high wages, a huge fan base, and enough diversity in all things to keep one entertained.  Let’s be frank.  There’s no way the Cleveland Cavaliers, Dallas Mavericks, Charlotte Bobcats, and Utah Jazz will ever win an NBA championship.  Not to say any of these cities aren’t nice, they just don’t match the star power of places such as New York, LA, and Boston.  Eventually, the best players and staff all gravitate towards one of the major metropolitan areas to really compete for a championship.

MOVE IF YOU WANT TO RAISE YOUR STANDARDS Read more…

Dear Readers,

It’s been a wonderful journey so far and I want to thank you for visiting my tiny slice of the matrix.  We may not always agree, but that’s the beauty of it all.  Through differences of opinion, we’re allowed to learn from each other and flourish mentally, and hopefully financially as well.  Besides, it’s not like I’m going to hold your puppy hostage or something if you challenge my opinion!  Hope you feel the same.

Sometimes it’s hard to to respond to all of your wonderful comments (7,100+ so far), yet I will always try.  I wish there was an easy way to tag all of the most interesting comments and show case them.  Perhaps I still will!  It’s so fun to visit other sites, comment, and interact, I want you to experience the same here.

Each blog has a different personality and tone to it.  I’d like to think that Financial Samurai is unique with a flavor that challenges conventional thinking.  We can go back to basics regarding budgeting, savings, and retirement planning.  Or, we can continue blazing new trails.  It’s really up to you frankly.  What would you like to read more of going forward?  Generally we should enjoy writing what we’d enjoy reading.

Finally, I thought it would be fun to dedicate this song to all the female readers who helped share their viewpoints.  Five String Serenade was composed by Mazzy Star in her 1993 album, So Tonight That I Might See.  The original plan when I learned Five String Serenade 12 years ago was to sing to a girl after an evening picnic on a beach somewhere.  I never got the chance until recently, and now it’s been recorded, in my own version for you.  Funny how things never turn out quite like you plan.

Here’s to another 200 posts!  Thank you again! Read more…

While waiting at the dentist, I picked up the April issue of Inc. Magazine and stumbled upon an article entitled, “The Secret Of Their Success.“  The article discusses what really drives salespeople to succeed.  We are all salespeople, whether we know it or not, which is why being a happy loser helps bring out the best in everyone.

Clotaire Rapaille, a psychoanalyst and ethnographer describes a happy loser as someone who sees rejection as a challenge.  The first “no” stimulates their brains to want to try harder and not give up.  Clotaire highlights one example where a firm defines success not by how many wins a salesperson achieves, but by how many rejections instead. Read more…

I’ve been a little more active on Twitter recently and I noticed something quit interesting.  Starting at around 10pm PST, the chatter goes silent.  I tend to stay up until midnight to 1am, and because nothing is happening on Twitter, I focus my attention elsewhere.  I usually wake up sometime between 5:30am-6am and spend time checking e-mail, responding to comments, stretching and seeing what’s going on online.  Again, absolute silence until about 7am PST when things start coming alive.  Where is everybody during the silent times?  Sleeping?

There was a time where I’d sleep 7 or more hours a day, but no more.  For the past 10 years, my body automatically gets up after 6 hours of sleep and never later than 6:30am on the weekdays, and 7:30am on the weekends no matter when I go to bed!  Poker until 3am? Good morning sunshine at 7:30am!  Actually, I wish I could sleep in until 9am, but I just can’t.  Part of the reason for my automatic clock is that I eat regularly, and therefore have the desire to use the restroom regularly.  Time to go, my body says and I get up.  Unconsciously, there must also be a strong feeling of guilt that I’m wasting my life away sleeping.

7 HOURS A WEEK LEADS TO 30+ HOURS MORE A MONTH 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…

My mother is a white cloud.  Every time I see her, she smiles even bigger than I can ever smile.  She loves to talk stories about any of life’s teachings she’s discovered, and I generally just keep quiet and listen.  Sometimes I don’t understand everything she says, but that’s OK.  It makes me happy just knowing she’s happy imparting wisdom onto me.

One of the holiday presents I got my father was a signed copy of Andre Agassi’s autobiography, “OPEN.”  To me, the book was gold, because Andre is my idol.  It was my only copy, and I decided to give it to my father because I remember him loving to read and enjoying the game long ago.

When my father opened his present, he did thank me and showed his appreciation.  However, a week later, the book still lay on the coffee table unread.  Somewhat dismayed that Agassi was being ignored, I spoke to mom about perhaps taking the book back since I cherished it so much.  She mentioned her unused Barnes & Nobles gift card and had an idea.

Later that evening, my parents went to the Mall for date night without us.  Apparently, Carl’s Junior had a two-for-one special and my father was just dying to go!  When they returned, my mother brought me over to the kitchen and told me, “Shhhhhh, take a look at the book.  I bought another copy of “OPEN” and swapped it with your signed copy, so you can take it home!  Dad will never know!” We laughed so hard it hurt and gave each other high fives!  My mom was right, dad never found out.  Mom, who knows very little about tennis, was encouraged by my enthusiasm she even read “OPEN” before dad!

LESSON LEARNED Read more…