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Things I’ll Teach My Daughter: Pay No Attention To A Guy’s Fancy Car And More

Updated: 08/09/2021 by Financial Samurai 197 Comments

Father and daughter walking on the beach - Things I'll Teach My Daughter

Back in 2016, I wrote this post expecting I was going to have a daughter. Therefore, I started thinking about the various things I’d teach my daughter involving personal finance.

I was nervous about how to be a first-time dad, especially to a daughter. I had one friend in her early-30s perpetually go in and out of terrible relationships. The last thing I wanted was for my future daughter to go through 15 years of breakups.

Instead of having a daughter, we had a son in 2017. Therefore, my thoughts were shelved until the end of 2019, when our daughter finally arrived. Hooray!

Now that I am a father to a daughter, this post is even more important than ever. Perhaps you have a daughter as well.

I’d like to revisit this topic and offer additional points about what we should teach our daughters. But first, a story.



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Safety First: Finally Bought A Family Car And It’s Not A Minivan

Updated: 03/09/2022 by Financial Samurai 127 Comments

My new mid-life crisis car: a Range Rover Sport HSE

After deep deliberation, I decided to pass on buying the $550,000 Mercedes G650 Maybach. It just felt like too much to spend on a family car when I could invest the money and earn $20,000 a year in passive income forever! Instead, I bought a family car for safety first.

What type of family car did I buy? I bought a late model 2015 Range Rover Sport V6 HSE with 11,200 miles in Santorini black with black leather interior.

It’s in perfect condition with a warranty until July 2019. The original sticker was $76,000 before tax or roughly $83,000 out the door. Such good value compared to the G650 Maybach right?



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Should I Go To Court And Fight My Speeding Ticket?

Updated: 04/22/2022 by Financial Samurai 102 Comments

Speed racer is in the house! I got a speeding ticket for going 35 mph in a 25 mph zone the other day and I’m pretty ticked. This post will discuss whether I should go to court and fight my speeding ticket. It should help you decide whether you should go to court and fight your speeding ticket as well.

When it comes to driving, please slow down. Speed is what causes the most accidents. Further, there are more high tech traffic cameras on the road today. They take pictures of your front and back and face.

Getting A Speeding Ticket

The cop pulled me over after I sped up in the middle of a yellow light and asked me whether I knew why he pulled me over. I innocently responded, “Because I went through a yellow light?“

He looked at me a little funny and said, “No. Do you know what the speed limit is here on Masonic Avenue?”

“I’m not sure officer. 35 mph?” I responded.

“No, it’s 25 mph and I got you on the gun going 45 mph,” said the officer.

First I was shocked that a five lane artery (2 lanes going south, 3 lanes going north) would have a speed limit of only 25 mph. I wasn’t blowing by anybody at all. Second, I was super surprised the officer said he clocked me at 45 mph!

Couldn’t Believe I Got A Speeding Ticket

Should I Go To Court And Fight My Speeding Ticket?
Back at the scene of the crime

Moose is slow as molasses as a 14 year old Land Rover Discovery II. There is NO WAY Moose could reach 45mph in two blocks. His 0 – 60 mph time is 11.4 seconds new and surely he’s lost a step over the years. 45 mph = 66 feet / second. Average city block is around 400 feet. I would have to be putting my pedal to the metal to get to 45 mph, which I wasn’t because that action guzzles more gas.

I looked at the officer when he told me I was going 45 mph and said, “You mean this car? I don’t think so. I haven’t had a speeding ticket in 8 years since my car is so slow and old.“

He kinda laughed and asked me for my license and registration.

When he came back three minutes later, he handed me a ticket and said, “I’m not going to write you up for 20 mph over the speed limit because that’s not good for your insurance and I don’t want to hammer you. I’ll just do 35 mph in a 25 mph instead.“

Gee thanks. What a nice guy! I was actually hoping he’d let me off with a warning as two other cops did in the past six years when I was driving Moose. Who gives a speeding ticket for 35 mph in a 25 mph zone when everybody is driving 35 mph?



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A Car Fanatic’s Drive Down Memory Lane: Lessons Following The 1/10th Rule

Updated: 08/15/2022 by Financial Samurai 86 Comments

I’m a car fanatic and maybe you are one too. This post is my drive down memory lane. I go over all the cars I’ve owned in the past and present.

One of my most financially helpful, but polarizing articles is The 1/10th Rule For Car Buying Everyone Must Follow. I wrote this post to help mostly younger folks not blow their money on the most common financial destroyer. We all know that almost all cars are guaranteed to lose value.

As a young man, I used to view my Toyota Corolla Hatchback as an asset because I didn’t know better. How could a car be a liability when I could take girls out on dates, drive to William & Mary from the DC-area to get a solid education, and take a nice midnight jaunt along the Jamestown river during final exams?

Now I view my vehicle as a liability. All I see in my garage is a large heap of metal necessary to transport my family safely. I’ve got to keep feeding it money in order for it to run – gas, new tires, maintenance, tax, tickets, accidents, and insurance. I’d much rather have the money sunk in my car producing passive income for financial freedom.

For those of you curious about what it’s like to follow the 1/10th Rule For Car Buying for the past 15 years, let me give you an honest assessment as an ex-car fanatic who has owned a dozen cars in his lifetime. The journey just might save you a lot of money and bring you more happiness in the process.



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Your Car Insurance Coverage Might Not Be Good Enough

Updated: 01/14/2021 by Financial Samurai 53 Comments

Insurance Is Expensive

Having reliable and sufficient car insurance coverage is so important. But how do you know if you have enough? Car accidents are incredibly expensive today! Here’s how I found that out the hard way.

Several years ago, I did something stupid. Instead of backing straight out of my parking stall, I turned too soon. As a result, I crunched the side of my car Rhino into a pillar. I wasn’t inebriated, tired, or high. I was just in a rush to meet a friend.

The last time I had an accident was in 1998. Instead of backing up into a pillar, I backed into the passenger side door of another car which was also backing out at the same time. It looks like there’s a pattern to my accidents. But who told that Mustang to run into my bumper?!

I remember trading insurance information, paying a $200 deductible, and sending in a sketch of what happened. My insurance company probably paid, but I don’t remember for sure. My premium stayed the same and the cost didn’t stand out. 



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Opportunity Cost Is A Spender’s Greatest Enemy: My Tesla Story

Updated: 03/09/2022 by Financial Samurai 24 Comments

Opportunity cost is a spender’s greatest enemy. Given America has a spending problem, our country will constantly be in grave danger without adopting better financial habits.

Back in 2018, I decided to join a Meetup softball league in San Francisco. I was one year into being a stay at home father and I needed to get out of the house more. Tennis had always been my sport, but I thought it would be nice to mix things up.

The softball league turned out to be a great outlet. I met people from various parts of the Bay Area from different socioeconomic backgrounds. The person I developed the best relationship with was with the organizer named Bob.

Bob is a preschool teacher who helps manage some of his parents’ properties. As a property fanatic myself we talked about various investment opportunities.

Of course, I shared my enthusiasm for ocean view properties in San Francisco. Then I mentioned my heartland of America investment thesis. Who knew that today’s global pandemic would accelerate the demographic migration towards lower-cost areas of the country.



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The 1/10th Rule For Car Buying Everyone Must Follow

Updated: 11/28/2022 by Financial Samurai 1,219 Comments

If you’re looking for a car buying rule, let me introduce you to the 1/10th rule for car buying. The 1/10th rule will help you spend responsibly, reduce your car ownership stress, and boost your net worth over time.

Back in 2009, I watched in horror as a total of 690,000 new vehicles averaging $24,000 each were sold under the Cash For Clunkers program.

The government’s $4,000 rebate for trading in your car ended up hurting hundred of thousands of people’s finances instead. With a median household income of only around $50,221 at the time, spending $24,000 on a new car was clearly too much.

Instead of buying a $24,000 car in 2009, you could have invested the $24,000 in the S&P 500. If you did, you would now have almost $100,000 in 2022. That’s quite an opportunity cost for buying a new car!

Buying too much car is one of the easiest and biggest financial mistakes someone can make. Besides the purchase price of a car, you’ve got to also pay car insurance, maintenance, parking tickets, and traffic tickets.

When you add everything up, I’m pretty sure you’ll be shocked at how much it really costs to own a car and hurl. After more than 10 years, the 1/10th rule for car buying has become the standard car buying rule for financial freedom seekers everywhere.



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The Best Time Of The Year To Buy A Car

Updated: 12/27/2021 by Financial Samurai 45 Comments

Black Audi R8 V8 - The Best Time Of The Year To Buy A Car

Since the global pandemic began, used car prices have gone way up. Everybody is buying a car instead of taking transportation. This post looks into the best time of the year to buy a car so you can save money.

My 13 year old SUV named Moose feels like it’s on its last legs. There’s a loud whiny noise every time I turn the steering wheel, which likely means the power steering box is cracked. Moose drips engine oil everywhere he goes and now he leaks coolant!

With a Blue Book value of only around $3,000, spending ~$1,000 to fix doesn’t seem prudent. It costs around $100 to fill up his 24 gallon tank and he only gets roughly 16 miles per gallon. Luckily I only drive about 6,500 miles a year.

The other reason why I’m looking to buy a new car is due to the advancement in safety features. Better brakes, better traction control, and more airbags would be nice. I’m not even sure my airbags work after 13 years!

One of my all time favorite things to do is spend time at a car dealer. There’s nothing like inhaling that new car smell and taking the latest models for a spin for free. All told I’ve probably visited a car dealership 30 times in the last 12 months and probably over 100 times in the last five years.

Call me thorough, crazy, an enthusiast, or simply a consumer who shows great constraint for not spending any money on one of his favorite things. Whatever you say there’s nothing better than finding something you love to do that’s free.

Best Time Of The Year To Buy A Car

Car salespeople probably hate me, but that’s good for those of you who are looking to get some insights into exactly when is the best time to buy a car. You see, I LOVE to negotiate.

Finding sales people’s breaking points is a scintillating experience. It’s a respectful battle based on gamesmanship and false compliments e.g. “Have you lost some weight Sam? You deserve to buy this new car!”

If you ever want to work on your negotiation skills, practice at a car dealership. They are consistently some of the most aggressive sales people in any industry. This post will focus mainly on the best times to buy a car and not so much on negotiating tactics.

Here are the best times of the year to buy a car.

1) Tax Season Is A Great Time To Buy A Car

The best time of the year to buy a car is during tax season (January through April). Ask any small business owner who is not in the tax business and they will tell you that business always sees a cyclical slowdown in April. The reason being that plenty of people owe taxes by April 15.

I personally owed a surprising five figure tax bill due to a retroactive law that raised taxes by 3% for those who make more than a certain amount in California. As a result, I didn’t spend money on anything other than necessities in March and April.

(See: What Happens If I Don’t Pay My Taxes?)

From my position as an online publisher, I see an increase in search traffic related to saving money and reducing taxes as opposed to search results relating to making more money, buying stuff, and going on vacations.

2) Memorial Day Weekend Another Great Time To Buy A Car

The second best time of the year to buy a car is during Memorial Day weekend. Memorial Day is the traditional start of Summer.

One of the key reasons is that auto dealerships need to clear inventory for next year’s models which come out in the Fall. For example, the 2022 BMW 335i Coupe will come out in August 2021. This launch cycle is consistent with practically every major auto manufacture in existence.

Memorial Day Weekend will also have brand new left over inventory from the previous year. These are often the best deals because you not only get a new car, you get a huge discount, and a warranty that starts at the time of purchase and not the time of manufacture.

Time period: End of May and the month of June.

3) Labor Day Weekend Has Excellent Car Sales

The third best time of year to buy a car is during Labor Day Weekend. Labor Day Weekend marks the end of Summer and the beginning of Fall. Vacation is over and its back to the salt mines baby! A lot of people blow plenty of money during the Summer and the last thing on their mind is to spend tens of thousands of dollars on a new vehicle.

Besides, folks who were looking for a new vehicle probably bought one just three to four months earlier during Memorial Day Weekend. However, because the following year’s models are now out in the Fall, current year models start looking very dated.

Any left over current year models will be heavily discounted. Unfortunately, you will also be tempted by the new models!

Time period: End of August, early September.

4) End Of Year To Make Way For New Models

The fourth best time of the year to buy a car is at the end of the year. There are always going to be end of year holiday sales. The best day of the year is probably the day before and the day after New Years where one day makes a car one year older or one year newer.

Blue Book values plunge the first day of the New Year for example. Your new 2021 car come January 1, 2022 just doesn’t sound as new as on December 31, 2013.

Time period: End of December.

If you just can’t wait for any of these four time periods, then at least wait until the end of the month. Car salespeople have quotas, and those who are lagging are the most motivated to sell you a car at the lowest of margins.

It’s up to you to find the hungriest or greenest car salesperson at the dealership! The best time to refinance a mortgage very closely mimics the best time to buy a car due to similar sales incentives.

A Car Negotiation Tip To Remember

If there’s one negotiation tip I’ve come away with after speaking to hundreds of car salespeople is that you must always be willing to walk away to get the best price.

Even after you’ve spent an hour negotiating, walk away for a bit and go through the pros and cons. Get some lunch or literally go for a nice long walk.

During this time period of wait, your salesperson will be wondering if you’ll ever come back. He’ll start doing the math on how much lower he’ll be willing to go if you do come back.

Finally, I’d just like to say that the best time of the year to buy a car is when you can afford to buy and need a car. Follow The 1/10th Rule For Car Buying to determine if you can truly afford buying the car you’re eyeing.

So long as you follow my 1/10th rule for car buying, you should be good to go! Take advantage of the best times of year to buy a car and save lots of money.

Auto Insurance Recommendation

Check out AllState online. They have some of the best plans with the lowest rates around due to their lower overhead costs. It’s worth spending a moment filling out a quote to see if you can save some money.

Car insurance is one of the largest ongoing expenses for car owners. Allstate has good driver discounts, and multi-product discounts as well.

For more nuanced personal finance content, join 100,000+ others and sign up for the free Financial Samurai newsletter. Financial Samurai is one of the largest independently-owned personal finance sites that started in 2009.

Updated for 2022 and beyond. The Best Time Of Year To Buy A Car Is A Financial Samurai original post.

Multiple Options For Terminating A Car Lease Early

Updated: 07/09/2022 by Financial Samurai 40 Comments

Are you looking options for terminating a car lease early? Since the pandemic began, there’s been an increase in people looking to terminate a car lease early to save money.

In difficult times, it’s important to cut costs and boost savings. With a potential recession on the way, terminating a car lease can sound like a logical solution. However, there are costs associated with doing so.

During my latest car hunting process, one of the questions I had was what to do with my three-year lease agreement with 12 months remaining.

I decided to lease a Honda Fit for my business for only $235/month after tax. About 80% of the cost is deductible since I primarily use Rhino for going to conferences, visiting consulting clients, and giving the occasional Uber ride when they are going my way.

When I was in my 20s, I’d always just pay cash for a vehicle and flip it a year or two later for even money or a small profit. I loved the hunt and the negotiation process. As I got wealthier, I put more value on time and simplicity. I wanted minimal maintenance headaches. I also wanted the option of just handing the keys in when my lease term was up.

But due to the desire of owning a mid-life crisis car and only having one indoor parking spot, I wanted to learn what my options were for an early lease termination.

Here are your options for terminating a car lease early after speaking at length with a couple vehicle leasing department personnel.



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Auto Insurance Basics And Recommendations For Everyone

Updated: 01/14/2021 by Financial Samurai 48 Comments

Besides the purchase price of a car, one must also calculate the potential maintenance cost, and auto insurance cost to determine affordability. We often focus on the first two costs. But, seldom do we realize the auto insurance cost differential until we’ve purchased the car!

Back in 2012, I was so happy to negotiate $2,000 off the initial asking price of a $14,000, black on black, BBS wheels equipped 1997 M3 in 2003 that I didn’t realize my auto insurance would jump from just $500 a year to $2,000 a year!

Had I realized my auto insurance would jump so much, I probably would have negotiated even harder. Or perhaps I would have reconsidered buying a sports car altogether.

Always get an auto insurance quote before you purchase a car please! If you really want to feel good affording a car, follow my 1/10th rule for car buying. It states that you shouldn’t spend more than 10% of your annual gross income on the purchase price of a car.

Having auto insurance is a law you don’t want to break. Accidents happen all the time whether they are your fault or not. If you end up wrecking someone else’s car and injuring a passenger, not having any car insurance could literally wipe you out financially and put you in poverty for the rest of your life! 

Check for a better auto insurance quote via Allstate online. They provide comparison quotes so you know you’re getting a great deal.



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