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Financial Samurai

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A Stealth Wealth Case Study On What Not To Do To Blend In

Published: 03/17/2023 by Financial Samurai 41 Comments

As the economy goes down the tubes thanks to a Fed-induced recession, anger against anybody who is perceived to have more wealth or success will go up. As a result, it’s important to practice Stealth Wealth to stay safe and happy.

I know anger has increased since the bear market began because I run a personal finance website with over 2,500 articles. Lately, there have been a lot more insulting and testy comments on new and old articles, which I won’t share.

There’s a natural tendency for some people to shout on the internet and blame strangers for their financial losses or problems. Blaming others is easier to do than blaming yourself. It may also be gratifying to call people “out of touch” or “elitist” to feel more self-righteous.

As a result, is there any wonder why some rich people want to signal that they’re middle class to the public? Nobody likes to be a part of a minority that gets constantly pelted with insults.

In this post, let’s do a case study on how one person tried to signal being average but didn’t quite succeed. The post is not meant to denigrate the person, but to help us learn how we can be better Stealth Wealth practitioners.

It takes courage to put yourself out there for public consumption, so I applaud her efforts. When you’re still aggressively building wealth and growing credibility, finding the right balance between stealth and status is hard.



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Should You Write A Book? Pros And Cons Of Being An Author

Updated: 03/06/2023 by Financial Samurai 43 Comments

So you want to write a book but aren’t sure if it’s worth your time. As a published author of both an ebook and a traditional hardcover book, let me share with you the pros and cons of being an author.

Given the success of my Wall Street Journal bestseller, Buy This, Not That, I’ve been given another book deal by Portfolio Penguin Random House. Therefore, this post will not only help you decide whether to write a book, but it will also help me decide whether to write another book too!

It’s funny, but the whole premise of Buy This, Not That is trying to decide between two difficult choices. With careful analysis, my goal is to help readers make optimal decisions to live their best lives and minimize regret.

So here goes another thought exercise for creatives willing to put themselves out there.



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What If You Take A Leap Of Faith And Your Dreams Don’t Come True

Published: 01/11/2023 by Financial Samurai 51 Comments

Sometimes you take a leap of faith and your dreams don’t come true. That’s OK because at least you won’t regret never trying!

In this article, taking a leap of faith means trying your hand at entrepreneurship. Entrepreneurship means leaving the comfort of a steady paycheck and benefits to make money from an idea.

Entrepreneurship is scary because you’re responsible for everything. There is nowhere to hide if something goes wrong. The more years of education you have, the greater the opportunity cost to become an entrepreneur.

But when things go right in entrepreneurship, there might be no better feeling professionally. No promotion or raise comes close when reward is perfectly correlated to merit.



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Conduct A Regret Minimization Exercise To Help You Move Forward

Updated: 01/17/2023 by Financial Samurai 32 Comments

One of the main reasons why I wrote Buy This, Not That was to help readers feel less regret by making wiser choices. Regret is one of the worst feelings, especially if it is a type of regret that could have been prevented through knowledge.

The easiest way to stop saying, “If I knew then what I know now, life would be better,” is to simply learn from someone who has experienced what you might experience. But it can’t be learning from just any experienced person. It has to be from someone who is willing to share both the good and the bad.

It feels like most of us tend to conduct revisionist history, where we make bad things seem less bad to make ourselves feel better. However, if we mask the pain, we rob those we want to help with the truth. And if you don’t know the truth, you may end up making suboptimal decisions, which can lead to more regret!

Hence, as soon as you find me writing how everything is awesome, please slap my head to stay balanced. As a perennial optimist, I have a tendency to always look at the positives.

Related post: The Negatives Of Early Retirement Nobody Likes Talking About



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Overcoming The Trough Of Sorrow: Defeating An Emptiness Inside

Updated: 03/06/2023 by Financial Samurai 50 Comments

Here in the San Francisco tech startup scene, we have a term called “the trough of sorrow.” The trough of sorrow refers to the sadness that comes after a setback or a big win.

After a setback, you’re tasked with finding product-market fit to survive given your company has a limited runway of cash. You may feel a combination of dread and emptiness. Instead of getting back up for the tenth time, it’s tempting to just accept defeat.

On the other hand, after experiencing the joy of a big win, there is often a question of what’s next? Sorrow can form because everything that comes next may never be as good. You may feel a combination of emptiness and disappointment.

Trough of sorrow
By Paul Graham of Y Combinator

What I’ve discovered is there is also a trough of sorrow that relates to one’s personal endeavors. Instead of experiencing incremental upticks in happiness, we go through these peaks and valleys due to our insatiable desire for more. Further, emotion is difficult to regulate.

The more effort you put into something, the more you set yourself up for disappointment. Therefore, to avoid the trough of sorrow, it may be wise to manage not only your expectations, but your commitment.

With everybody away on holiday, let me use this post to reflect on a funk I felt a couple of weeks ago.



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Why I Wrote A New Personal Finance Book: Buy This, Not That

Updated: 02/10/2023 by Financial Samurai 99 Comments

After two of brainstorming, writing, rewriting, and editing during the pandemic, my book, Buy This, Not That: How To Spend Your Way To Wealth And Freedom is now available!

The book became an instant Wall Street Journal bestseller and can be purchased on Amazon, B&N, and in bookstores everywhere. Buy This, Not That also became a #1 bestseller on Amazon in Retirement Planning. Hooray!

I’ve spent a combined 30+ years working in finance, studying finance, and writing about finance. As a result, I firmly believe Buy This, Not That (BTNT) is one of the best personal finance books out there. It is the book I’ve always wanted to write to help readers everywhere live better lives on their terms.

A Personal Finance Book Based On Firsthand Experience

During the course of my writing process, I also read over a dozen nonfiction books to understand what makes good books great. I then worked in my ideas with my editors at Portfolio Penguin Random House to make the book shine.

Money is too important to be left up to pontification. Therefore, everything I’ve written in the book is based on firsthand experience from a finance veteran. This way, I can share with you the good and the bad to help you make better decisions.

The secret to stop saying, “If I knew then what I know now,” is to simply learn from someone who has been through what you will go through.

I’ve also set up financial frameworks to help guide you on your path to financial freedom. Think of BTNT as your financial coach who gives you the confidence and the motivation to overcome life’s biggest dilemmas in a smart and practical manner.

Order a hardcover copy of Buy This, Not That by clicking one of the retailers below. My book is your unfair competitive advantage for getting ahead in this brutally competitive world!

Buy This Not That_Amazon
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Financial Independence Is Only Part Of The Journey

Once you get your money right, you can start better focusing on things that really matter to you. After all, money is only a means to an end. And for those of you who treat money as the end all be all, I hope my book will help change your philosophy.

Once you achieve a certain level of financial independence, where your passive investment income covers your living expenses, the world opens up.

The ultimate goal is to move money into the background so you can stop obsessing over it and start focusing on doing things that matter.

I show you how in the first half of my book. With actionable advice under a logical framework, I help you move forward with confidence.

Solving Dilemmas We May One Day Encounter

In the second half of my book, I tackle many of life’s dilemmas and how to approach them using my 70/30 decision-making framework.

If you believe there is a 70% probability or greater you will make the correct decision, go for it! At the same time, have the awareness of knowing you may get things wrong 30% of the time. Unless the outcome is death or financial ruin, you will be able to learn from your mistakes, recover, and make better choices over time.

My book encourages you to think in probabilities, not absolutes. If you think in absolutes, you will likely miss out on a lot of great opportunities because you’ll feel you need 100% certainty before moving forward. However, if you start thinking in probabilities, plenty of new possibilities opens up.

Here are some dilemmas the book explores:

  • Pay for private school or public school
  • Join a startup or work for an established company
  • Start a lifestyle business or go for the grand slam
  • Job hop or stay a loyal soldier
  • Live in an expensive coastal city or move to a low-cost area 
  • Invest in real estate or stocks
  • When to rent or buy
  • When to invest in tax-advantaged versus taxable accounts
  • Angel invest or don’t
  • Buy a fixer or a fully remodeled home
  • Marry or cohabitate
  • Marry for love or marry for money
  • Have children early or late
  • Return to work or be a stay-at-home-parent
  • Combine your finances or keep separate accounts
  • Get a divorce or stay married
  • Seek fame to boost your wealth or stay low key
  • Support your adult children or let them learn to swim

And so many more topics.

Again, money is just one part of the equation. It’s how we use our money to make better choices that matters most. If any of these topics interest you, Buy This, Not That will help you minimize regret and maximize satisfaction.

Why I Wrote Buy This, Not That

I wasn’t planning on writing a traditionally published book. As a tired father of two young children who also publishes three times a week on Financial Samurai, I already had my hands full. However, when Noah, an editor at Portfolio Penguin approached me on December 2, 2019, about the idea, I was intrigued.

When the pandemic hit in March 2020, I thought why not! If I was going to be stuck at home anyway for who knew how long, I might as well make the most of a suboptimal situation. This is the Financial Samurai mindset!

Back in 2008, something similar happened. The global financial crisis was starting to deepen and I was losing a boatload of money. However, it was in the summer of 2008 that I finally decided to propose to my girlfriend of nine years. I knew that even if I lost all my money, I didn’t want to lose her.

Now, every time I think back to the global financial crisis, I immediately think about our small beach wedding, not the economic calamity during that time period. By writing Buy This, Not That during a pandemic, I’ll look back and feel good knowing I did something productive to help others.

Here are some more reasons why I wrote my latest book.

1) It Had To Be Written

Buy This, Not That: How To Spend Your Way To Wealth And Freedom Bestseller

One of the reasons why I started Financial Samurai in 2009 is because I noticed there weren’t any personal finance bloggers with finance backgrounds. Therefore, I thought it would be a good idea to fill this obvious hole. I thought about money differently and wanted to bring my expertise and perspectives to the world.

When I was approached by Portfolio Penguin Random House with the book idea, I noticed there also weren’t many nonfiction finance books that were written by people with finance backgrounds. Further, both my wife and I are practitioners of early retirement, not pontificators with steady paychecks. Therefore, I figured I might as well fill the hole again and share my perspectives!

After being able to escape corporate America at 34 and live the life I want for the past 10 years, I just had to write a book that could help other people potentially do something similar. Once you see how something is done, it’s much easier to believe a similar path is possible for you.

2) The Importance Of Financial Education

There’s a whole world of consumers out there who love to read books and not blogs. Therefore, it was only logical to write Buy This, Not That to try and reach them.

Creating maximum impact in an affordable way is important. I could create $2,000+ e-courses like some peers do. However, I felt packing in all the information in a book that costs $27 or less was a more accessible solution.

After 13 years of writing on Financial Samurai, I’ve also gathered a wealth of different perspectives from over 90 million visitors. These perspectives have helped me make better decisions and be a more empathetic person along the way. Buy This, Not That includes many blindspots I’ve had to potentially help others see things more clearly.

The world is in need of more financial education. A personal finance course should be mandatory in high school or college, but it is curiously not. I live in this bubble where I studied economics in college, got my MBA, worked in investment banking for 13 years, and have written over 2,500 personal finance articles since 2009.

The things that seem obvious to me or others with finance backgrounds don’t seem as obvious to those without financial backgrounds. Therefore, my goal is to bring more financial education to those who seek to grow their wealth in a risk-appropriate way. It’s our duty to share what we know.

3) Narrow The Growing Inequality Gap

Since the global financial crisis in 2008-2009, the rich have gotten extraordinarily rich compared to the middle class. Meanwhile, those in the top 0.1%, have blown past the top 1% as well. I want to bring their secrets and ways of investing and thinking to the public in order to help more people build wealth.

While writing Buy This, Not That I also had an epiphany as to why so many personal finance authors write mainly only about saving money, budgeting, and index funds. I kept wondering why not also write about more interesting and potentially lucrative topics? After all, you can only save so much. But income and investment returns are unlimited!

After over a year of writing and re-writing my book, I finally understood why. Without a finance background, writing about anything else beyond budgeting and saving is much more difficult. No wonder why so many personal finance books just scratch the surface of so many important topics.

Hence, I’ve introduced helpful financial concepts, gone deep with multiple subject matters, while also making them easy to understand. There are two levels of rich. The highest level didn’t get there through just saving and investing in index funds.

My hope is with the knowledge you will gain from reading Buy This, Not That, you will build way more wealth in your lifetime than you thought possible. And if this happens, your standard of living will go up and the growing inequality gap will ultimately narrow.

Why I Wrote A New Personal Finance Book: Buy This, Not That - net worth levels by class

4) New Perspectives With More Representation

As an Asian person who lived in Asia for 13 years, I used to be part of the majority. Then when I came to Virginia for high school and college, I became part of a minority that made up only six percent of the U.S. population. The juxtaposition was eye-opening.

At times, it was hard to fit in. I got into fistfights and was suspended once. I often felt like I had to battle to be given an equal opportunity to participate. Although some of the experiences were harsh, they also gave me tremendous motivation to try harder.

By high school, I clearly realized the world isn’t fair and never will be. Therefore, instead of complaining, I accepted the way things were and focused on what I could control. I bring this fighter’s mindset to the book. It will give you the motivation to push on through no matter who you are or how difficult your struggles.

BTNT is your unfair competitive advantage to getting ahead!

We know people are biased towards people who look, think, and talk like them. It’s why podcast interviewees, award-winners, bestsellers, and families who attend elite schools tend to be quite homogenous.

Therefore, I thought it would be nice to change things up a little and provide new perspectives. Maybe there will be more love and understanding for Asian folks in America if they read a good book by an Asian person who helps them. Perhaps kids who seldom see anybody who look like them will be inspired to write their own book or do something out of the ordinary.

Including People Who Live In High Cost Areas

In addition, a large percentage of every country’s population lives in more expensive urban cities. High cost of living areas presents some unique challenges which I address in the book.

With how bifurcated America is, I’m hoping to create an understanding bridge between those who live on the expensive coasts and those who live inland. Ultimately, we all have the same goals of supporting our country and doing more of what we want.

I’m convinced most conflict in this world is due to a lack of understanding of other people and their personal situations. Let’s spend more time getting to know each other and less time judging people for their choices.

5) Steady Navigation Through Bad Times And Good Times

As someone who has worked in finance since 1999, I’ve gone through the euphoria and despair of the first Dotcom bubble. Then I went through the investment mania of 2007 and the devastation a few years later with a significant amount of capital.

After each collapse, I’ve learned how to strengthen my finances so that no matter what happens, I’ll most likely be OK. I want to share what I’ve learned to help more people survive downturns without too much harm. Reading Buy This, Not That will help armor your finances and provide security for your household. The book will also give you the courage to do more of what you want.

For so long, it’s only been good times. And you may have read only the perspectives of people who’ve only experienced good times since 2009. This can be very dangerous. Bad times will eventually come, which is when you’ll need financial guidance the most.

It is hard to understand your true risk tolerance if you don’t go through a prolonged bear market yourself. Although the March 2020 crash was violent, it was also quick to rebound. Now things are once again very uncertain, which is where BTNT readers will outperform.

Buy This, Not That will help you navigate through stormy waters so that no matter how wretched the economy, you will not drown but thrive. Having peace of mind during difficult times is priceless.

Below is a snap shot of BTNT making the Wall Street Journal bestseller list. It felt good to be the only new entrant and the only person with black hair to do so. Breaking the status quo is awesome!

Buy This Not That Wall Street Journal Bestseller
BTNT is a WSJ Bestseller

Thank You For Reading Buy This, Not That!

I’m thrilled for y’all to read Buy This, Not That: How To Spend Your Way To Wealth And Freedom. I actually violated my publisher’s recommendation of keeping the word count to 80,000 words. Instead, I wrote about 111,000 words. I wanted toadd as much value as possible given nonfiction books are all about the same price.

It is a big book full of vital information to help you enjoy a better life. There are so many important subjects that I believe you’ll actually be left wanting for a book two!

Buy This, Not That is meant to be read and discussed with friends and loved ones. You’ll have a great time debating my reasonings and making your own cases. I truly believe discussion and listening to the perspectives of others is the best way to learn and grow.

Order a hardcover copy of Buy This, Not That by clicking one of the retailers below.

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Virtual Speaking For Buy This Not That

If you’re interested in doing an author chat, shoot me an e-mail at sales AT financialsamurai DOT com. BTNT is meant to be read with others and discussed. And who better to lead the conversation than the author of the book!

So far I’ve video talks with folks at Google, Yelp, William & Mary, Facebook, and several other organizations. They’ve all been a lot of fun and insightful.

Finally, if you’re thinking about becoming a professional writer, here are my thoughts about how to make it work. It’s not easy. But you will feel proud once you’re done. Write because you love to write, not because you want to make money!

Thanks for picking up a hardcopy of Buy This, Not That. If you enjoy it, please leave a nice review on Amazon or wherever you purchased it. It’s the best gift an author could receive. So far, the Buy This Not That book reviews have been great. Thank you all!

Buy This, Not That: How To Spend Your Way To Wealth And Freedom Bestseller

To Your Financial Freedom,

Sam

Making Money As A Professional Writer Is Hard, Here’s How To Succeed

Updated: 01/13/2023 by Financial Samurai 14 Comments

The reason why the terms “starving artist” or “starving writer” exist is because they are true. It is very difficult to make money in the arts. However, if you want to be a professional writer and not starve, let me provide you with some insights.

For background, I’ve written over 2,500 articles on Financial Samurai since 2009, authored a 200+-page e-book in 2012, and published a 300+-page hardcover personal finance book in 2022. Combined, these writing activities have enabled me to earn enough money as a professional writer to provide for my family of four in San Francisco.

However, sadly, I could NOT make it as a professional writer if I only was the author of books. Let me explain more about making money as a writer. I’ll share with you some dollar figures that will make you scratch your head with dismay.

While writing is one of the best ways to make extra money from home, it is also a difficult way to make money full time. For those of you looking to build more side income through writing, this post is for you.

The Easiest Ways To Make Money As A Writer

To summarize this long post, the easiest ways to make money as writer are as a:

1) Freelancer. Since we all took English in high school, almost all of us can write. You just need to start applying for freelance writing gigs online, which there are plenty.

2) Journalist / Columnist. Get a job at a media organization and you are a professional writer. But not everybody can get such a job without a degree in writing, English, or Journalism.

3) Blogger. Anybody can start their own site for less than $100 nowadays. From your blog you can make advertising revenue and money from your own products. But it takes years of making little-to-no money, which is why it’s harder to sustain.

4) Book author. The hardest way to make money as a writer is by writing a book. Don’t publish a book if you want to get rich. Publish a book only if you have something you must say. Even with my book, Buy This, Not That being a WSJ bestseller, it likely won’t generate enough royalties to pay for my family’s living expenses.

Now let’s get to the meat of why being a professional writer is so hard to make a living!



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What Makes A Bestselling Nonfiction Book? Insights From A Major Publisher

Updated: 11/20/2022 by Financial Samurai 25 Comments

After 2.5 long years, Buy This, Not That: How To Spend Your Way To Freedom, is now available for purchase! Pick up a hardcopy on Amazon, Barnes & Noble, or your local bookstore (call ahead). It also became an instant Wall Street Journal bestseller!

To celebrate, I’d like to share what makes a great nonfiction finance book based on insights from my Portfolio Penguin Random House editor, Noah Schwartzberg! But first some background.

Back in 2012, I looked for a literary agent in order to get a book deal. I was three years into writing Financial Samurai, had just left my banking job of 11 years, and felt I had a unique message to share.

After putting together my pitch about teaching people how to negotiate a severance, I contacted over two dozen agents. I waited for a couple of weeks and heard the sound of blackness under a pale moon light.

Not one to be deterred by rejection, I decided to work together with my father and wife to write How To Engineer Your Layoff: Make A Small Fortune By Saying Goodbye. The book was recently updated and has helped thousands of people break free from jobs they dislike with money in their pockets.

How To Engineer Your Layoff Ebook New Edition
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The ebook has also generated over $500,000 in net profits since it first came out in 2012. Not bad if you are considering self-publishing a book, yeah?

For those of you who are told “no,” don’t listen. If you want to create something special, do it! Don’t let the gatekeepers hold you back. The internet is making more things possible for more people.



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Real Estate Versus Blogging: Which Is A Better Investment?

Updated: 11/20/2022 by Financial Samurai 97 Comments

Real Estate Versus Blogging Financial Samurai

As a blogger since 2009, I love blogging. As a real estate investor since 2003, I also love real estate. Therefore, I thought it would be smart to do a real estate versus blogging showdown! Exactly which is a better investment? They require different amounts of effort, capital, and skills.

In Stocks vs. Real Estate, I compare which asset class is best suited for which type of person. My preference is for real estate due to its tangibility, income, utility, and one’s ability to improve the asset class. Your physical real estate portfolio is unlikely to lose a ton of value overnight as with a stock portfolio.

With stocks, you are a minority shareholder with no say in the business and not utility gained. At least with real estate, you are the king or queen of your holdings. You make the decisions and get all the rewards and losses.

But what about real estate versus blogging? If you’re looking to build next-level wealth or are searching for new ways to make money from home, then choosing between real estate versus blogging is something to consider. After all, we’re all spending more time at home. Blogging could be the best work-from-home job there is!



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Travel Blogging: One Key To A Happier Retirement

Published: 05/09/2022 by Financial Samurai 18 Comments

While working in finance, I fantasized about travel blogging. I saw a bunch of people write about all the new places they visited. They chronicled the food they ate and the activities they did while making money online.

Given their niche was travel, they could also deduct their travel expenses from their online income. It was a sweet, sweet deal. As a result, I tried my hand at travel blogging for one year between 2012 – 2013. It was wonderful.



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