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Make Time To Think Differently If You Want To Make More Money

Updated: 03/02/2021 by Financial Samurai 25 Comments

Mexican fisherman and his catch - Make Time To Think Differently If You Want To Make More Money

Want to make more money? Of course you do. Make time to think differently so you can discover new investment and business opportunities

In 2020, the S&P 500 closed up almost 18% for another record all-time high! This was despite the global pandemic crushing businesses and jobs.

Just think about this situation for a little bit. Is it not a little bit ironic that more jobs creates more stock market wealth, but once you have lots of stock market wealth you no longer have to work?

I’m reminded about the parable of the Mexican fisherman who gets ridiculed by an executive with a fancy MBA for why the fisherman doesn’t want more than his catch. The whole point about investing our money is so that our money will one day work so hard for us that we don’t have to.

Make Time To Think Differently

Here I am an unemployed guy looking for work as a masseuse’s guinea pig in Bora Bora and for what? To earn $25 an hour while getting rubbed down by some lovely lady on the beach after two hours of tennis and one hour of scuba diving? Forget that!

What I should be doing is spending my hours trying to uncover potential multi-bagger investment opportunities that people have overlooked. My biggest regret when I was in my early 20s was not having enough money to invest in this one stock that exploded by 50X in a matter of months. I’ll tell you about this story in a future post.

Risk-on is risk-on. People overbid like crazy for things in a bull market. Bubbles will eventually form, but before the burst you can make a ton of money in the process.

Everybody likes to talk about how dotcom millionaires went bust in 2000. I personally know a handful of dotcommers who did quite well. The same goes for real estate. We are talking millions of dollars in the bank before the age of 30.

Not everybody got crushed like the media makes it out to be. Those who succeeded in cashing out have quietly gone about their ways.

New Initiative To Make More Money

From now on I will spend at least 15 minutes once a week looking for investment ideas, publicly traded or private. I’m going to spend time thinking differently. I’ll alternate the time for new online entrepreneurial ideas as well. I’m not going to over promise by saying 30 minutes or 1 hour because I know that won’t happen.

Most of us spend too little time using our imaginations. We wake up, brush our teeth, get dressed, go to work, come home, eat dinner, watch TV, poop, and repeat the cycle over and over again.

Let’s make room for some meditation, some investment idea hunting, and some creativity. I bet if we set aside more time to think differently, we can do much more, be much more, and earn much more.

Ideas To Make More Money

* Is there a product you swear by that you use all the time? Perhaps it’s a publicly traded stock you can look into.

* Is a company in a foreign country replicating the success of an established player? Samsung vs. Apple, Yandex vs. Google, Hyundai Motor vs. Honda, etc.

* Is there something you are particularly good at or fond of that you can leverage into something more?

* Is there a problem that bothers you where you see a solution?

* Do you see something mediocre which you can do better?

* Where is fear the greatest? Some of the greatest opportunities come out of darkness.

Start your own online business

It’s been around six years since I started Financial Samurai and I’m actually earning a good passive and active income stream online now. 

I never thought I’d be able to quit my job in 2012 just three years after starting Financial Samurai. But by starting one financial crisis day in 2009, Financial Samurai actually makes more than my entire passive income total that took 15 years to build. Blogging for a living is great!

If you enjoy writing, creating, connecting with people online, and enjoying more freedom, see how you can set up a WordPress blog in 15 minutes like min with my step-by-step tutorial. You never know where the journey will take you!

The net worth composition of the richest people all have business equity due to entrepreneurship. If you want to make more money, think differently by being a business owner.

Pro Blogging Income Statement - Make Time To Think Differently If You Want To Make More Money
You can start your site for next to nothing and potentially make a lot of extra income. This is a real example.

Related: How Do You Expect To Make Money If You Don’t Produce Anything?

Photo: A Mexican fisherman with a huge catch. 2021.

Finding The Motivation To Stay In Shape: A Conversation With Big Wave Surfer Laird Hamilton

Updated: 12/30/2020 by Financial Samurai 33 Comments

Laird Hamilton posing for me, FS, Oahu, 2013

It’s hard to stay in shape as we get older. We move around less, our family demands more of our time, and our jobs stress us out to the point where we eat too much comfort food.

I’m about 10 pounds heavier that I was during college. I always tell myself it’s due to more muscle, but I know it’s a lie because I hardly ever lift weights anymore. When you no longer need to be in incredible shape because you’ve found someone who likes you just the way you are, why bother? All I do is play tennis and do the occasional push-ups and sit-ups now.

Motivation is something I’m perpetually looking for because my motivation meter never seems to stay full. I sometimes feel the paradox of freedom where America allows for a relatively correlated path to attaining what we want. If I want to get six pack abs, I’ll cut out the sweets and do 500 sit-ups every day for three months in a row. If I want to make more money, I’ll work harder at executing new ideas. I really don’t think there’s very much that’s inhibiting our progress other than ourselves.

Stay In Shape With Laird Hamilton

I just finished boogie boarding at “The Walls” in Waikiki beach, Oahu when I bumped into Laird Hamilton. Laird is the co-inventor of tow-in surfing and is considered one of the best big wave rider of our time. Take a look at the video below to see Laird successfully ride a 50 foot, cylindrical beast at Teahupoo. It’s sick!

At 6’3” and 215lbs, Laird is absolutely ripped. You know those board shorts without elastic bands that squeeze any fat you have around your belly even if you’re relatively thin already? Laird doesn’t have that problem. What’s particularly inspiring is that Laird is 49 years old and is in better shape than 99.9% of folks out there. When he turns 50, you’ll know he’ll still be in the same great shape.

I talked with Laird about his charity work for kids with autism as well as his secret to staying so fit. He basically said to cut out the refined carbs (pancakes, waffles, bagels, pasta, rice, cereal) and stick with complex carbs, organic fruits, and vegetables. Have a taste of dessert if you wish, but don’t eat the whole thing he said. Makes sense. We also got to talking briefly about our mutual love of the ocean before another fan requested his attention.

Everybody should know by now that processed foods and refined sugars are the worst thing for someone who wants to get lean. It just feels better coming from a legend himself.

After taking a couple photos with Laird I went on my way with a friend to get some Ono’s Hawaiian food on Kapahulu. We kept on thinking, “What would Laird eat?” So we decided to skip the salt meat watercress soup and haupia and stick with fresh poke and butterfish luau instead.

Stay In Shape Motivation Going Way Up!

It’s frustrating to always have to recharge the motivation meter. Although I don’t wish for anything bad to happen to change my ways, I clearly see the benefits of getting “scared straight.”

Perhaps that scary moment is getting your first mini-stroke at the age of 40 to eat better. Or maybe it’s as simple as investing all your net worth in the stock market and having years of saving get cut in half in a matter of months to make you diversify more. Whatever the case may be, I’m thankful to have bumped into Laird.

Besides the motivation to get back into the best shape possible, Laird also reminded me that so much of the best things in life are inexpensive or free. The waves will always come for anybody who dares to take them on. The mountains will always stand majestically for any hiker whose knees will allow. The West Coast is the best coast, but I think I love Hawaii even more.

From now until a potential summer boondoggle in Barcelona, I plan to get back into the best shape possible. I’m not eating better out of guilt or for anybody. I’m selfishly getting fit for myself.

“I do not want to not live because of the fear of what could happen,” Laird Hamilton.

Recommendation For All Parents

If there’s one thing the pandemic has taught us, it’s that life is not guaranteed. We must do everything we can to protect our children while they are still dependents. This is especially true if we have not stayed din shape all these years.

As a result, please get life insurance. Not only should you get enough life insurance to cover your liabilities, your life insurance term should last long enough to get them through college.

The best place to get life insurance is through PolicyGenius. PolicyGenius will help you find the best plan for the lowest price tailored to your needs. PolicyGenius provides free, no-obligation quotes so you can get the best rate. 

In the past, you would have to get a life insurance quote by applying to individual carriers – the process was completely opaque. Now, you can have multiple qualified life insurance carriers compete for your business after applying on PolicyGenius. It’s so much more efficient! 

If you don’t have life insurance, please get life insurance before you need to. Life insurance gets more expensive the older you get. If you get sick, depending on the severity of your sickness, you might not be able to qualify.

If you do have life insurance, I highly recommend checking PolicyGenius to try and get a better deal. Chances are high you’re not getting the best terms. 

How To Stop Haters From Hating You

Updated: 02/15/2021 by Financial Samurai 65 Comments

Lucky Penny by Untemplater.com

This post teaches you how to stop haters from hating you so much. Haters are everywhere. The more public or successful you are, the more you will attract haters. You don’t even have to do or say anything bad. You will inevitably get a hater if you achieve any type of success.

Since Financial Samurai has been around since 2009, this site attracts a fair amount of haters. Even if only 0.01% of the visitors a month hate this site, that’s still 100 haters a month on one million visitors.

I’ve personally been on the receiving any of many racists comments. I’ve also been attacked by the very own people in the financial independence community.

But through it all, I continue because the hate is only a tiny minority of the feedback I get. Overwhelming, the feedback is positive.



Read More…

Don’t Forget To Dream Big And Often

Updated: 12/20/2019 by Financial Samurai 23 Comments

Dreaming Of A Ferris WheelPersonal finance is wonderful because it allows us the opportunity to dream of possibilities. When I was a freshman battling for a spot on the varsity team, I fantasized about being a professional tennis player signing balls after sliding on the red clay of Roland Garros. Every time I attend a tournament now, I feel like a kid again.

As a poor college student, I dreamed of making big bucks on Wall Street every time I passed the overly diligent business school students huddled around a TV showing CNBC. I imagined whipping around hundred million dollar positions on the prop desk as traders on the other side wondered what the hell I was up to. After a profitable day’s work, it would be off to Peter Luger’s Steak House in a black car with some clients, some friends and a corporate card of course.

After a couple years of marathon workdays in New York City, I dreamed of being free to set my own schedule. My health was fading and I didn’t know how much longer I could last getting in before sunrise and leaving after sunset. As a poker fan, I always imagined winning the WSOP multi-million dollar first prize. Some would hand in their resignation the next day while giving their boss the bird. I would continue working because work becomes incredibly more fun when you don’t need the money. Besides, I’m the WSOP champ, baby!

Now that I’ve retired from the corporate world, I continue to dream about all the possibilities. A dream within a dream if you will as I never imagined the ability to break free so soon. Why not run different financial scenarios and imagine what type of opportunities might arise in 25 years?

A reader commented in the 2013 Goals post how surprised they were to find “Live Free” as a goal. Paradoxically, it’s hard to live free when you’ve got to make all your own choices. But, I’d rather have choices than have no choice at all.

I dream of progress. I dream of adventure. The best part of dreaming? Anybody can do it because it’s free.

What do you dream about?

Financial Samurai 2012 Predictions Recap

Updated: 03/31/2021 by Financial Samurai 25 Comments

IMG_1347

Financial Samurai 2012 predictions recap is a Financial Samurai original. I’ve been writing my predictions and recaps since 2009.

Another year has come and gone. Hopefully, all of you have made strides with your finances and your personal lives. Financial Samurai would be a failure after writing ~250 articles in 2012 if I wasn’t able to help you save more money, invest better, take more calculated risks, and take one step closer to achieving financial freedom.

2012 will go down as one of my most defining years because I managed to break free from the corporate world. There’s no doubt I would still be taking a 7:15am bus to work if it wasn’t for launching this site. It feels exhilarating to start anew!

It’s going to be tough to match the accuracy of my 2011 predictions because I was off by only 0.5% with my Dow Jones Index target (+5.5% instead of +5%). North Korea’s Kim Jung Il passed away as predicted as well. No, I do not work for the CIA. But, maybe I do. You don’t want to know.

I have not revisited my predictions for 2012 until the writing of this post so I’m curious to see what was on my mind one year ago. December 2011 was still a time of disarray, with 8.5% unemployment, tremendous uncertainty in Europe, the Occupy Everything movement, and a US President whose hopes of re-election loomed on a improving economy.

Here’s to looking like a Big Donkey or a Small Donkey!

Financial Samurai 2012 Predictions Recap

* Black is from one year ago. Blue is now.

1) President Obama wins a second term.

Political pundits and online betting sites are completely clueless and gutless in their 50/50 predictions. They talk about how the stock market and unemployment needs to do well for Obama to get re-elected. Nothing matter folks!  Republicans have nobody worthy of beating President. Barring an Obama illness, nothing really matters. The economy is improving, unemployment is going lower, and personal balance sheets are strong. If you know anybody who is delusional enough to think a Republican will win in 2012, bet them as much money as you can afford to lose. When Obama wins, you’ll get a nice little year-end extra bonus. If anybody would like to bet me that Obama does not win, I’m open for business!

Analysis: It seems like a slam dunk now that Obama received more than 300 electoral college votes for his re-election. But, back in December 2011 unemployment was close to 9% and I received a lot of flak for this call. In fact, I followed up this prediction with a good natured post on a grassroots way to get Republicans to donate more to charity and got several takers to the tune of over $2,500. All proceeds are going to charity. I really enjoy putting my money where my mouth is. It helps me think things through more thoroughly. If you don’t put your money where your mouth is, then it’s like an entrepreneur coming up with a dozen ideas and never executing. 

2) The unemployment rate drops below 8%.

Just like that, the unemployment level breached 9% to 8.6% in the latest reading. And just like that, at some point in the 2nd half of 2012, unemployment flirts with 8% and then busts on through. Have you seen the holiday spending figures yet? En fuego! Nobody spends money on stuff they don’t need if they don’t have money and aren’t confident about their job prospects. Simple logic folks.

Analysis: As of Dec, 2012 the current US unemployment rates is 7.7% as opposed to 8.6% a year ago. The Fed came out and said they will do everything possible to provide liquidity into the system until the unemployment rate drops below 6.5%. Don’t fight the Fed. Take advantage of all its artificial manipulation as much as possible e.g. refinance your mortgage and ask for interest rate decreases. Holiday spending was strong then, and it is super strong now. 

3) There is no inflation. 

Despite tuition, food, and energy costs all going up, the government says we have no inflation, therefore the 10 year yield stays handsomely below 3%. We have become a nation of blindly following our leaders and letting them get away with whatever they want. One blogger friend in a previous post highlighted an Obama scandal he’s pissed about, and when I asked him to write about it on his site, he said “he doesn’t talk politics on his blog”!If that’s not government omnipotence, I don’t know what is! Our leaders would not be here if we did not believe in them. Hence, there is no inflation because they say so.

Analysis: The 10-year yield is at 1.7% vs. 2% a year ago, signifying tremendous slack in the system and demand for US dollar denominated assets. I really think people are wasting their money getting 30-year fixed mortgages. Interest rates have been going down for over 25 years in a row folks. Get a 5-year ARM or maybe even shorter instead. Just make sure you have a cash reserve. The inflation prediction was another bet I was trying to get others to take since investment bloggers to  fixed income strategists were all calling for higher inflation. Those silly geese.

Related: Are You A Real Millionaire?

4) The US markets have a banner year. 

Everything is relative. Given the 10-year yields no more than 3%, any return more than triple the 10-year yield is an amazing return. As of now, we’re talking about a 6% return, however, may I be so bold to forecast a greater than 10% return on the S&P500 in 2012. That’s right, we’re talking S&P 1,400. Because the consumer is fine and spending again, corporate earnings continue to grow at a healthy clip.

The S&P 500 dividend yield is equal to the 10-year yield at 2%, and investors start asset allocating back into equities. Buy underlying shares of gold and oil as I believe they have an even better chance of being up 10% in 2012. International equities catch a bid as well and outperform the US, especially Brazil and the larger Asian markets. If I am up 10% in my overall portfolio at any point this year again, I will sell almost all my holdings just like in 2011.

Analysis: I’ve been waiting to publish this post until the last day given there’s been no resolution on the budget talks. The S&P 500 ended 2011 at 1,257 and has indeed risen by more than 10% to currently 1,402 pre-open. The S&P 500 closed the last day of the year up 1.7% (23.76 points) to 1,426.19 as hope for a budget deal pushed the markets higher. During the year, we’ve done some asset allocation shifts by selling in May, getting back in July, selling after QE3 in September, and now full back in after the 7.5% dip.

The net result? Outperformance of the broader index for those of you following along all year. Meanwhile, Asian markets ended the year up around 17%, outperforming the US as predicted by more than 5%. Eventually, I’ll get the directional prediction and the magnitude change wrong, but so far, it’s been correct every year since this blog’s inception.

5) Online advertisement spending surges, therefore blogging becomes that much more lucrative.

Some people worry blogging is a unsustainable stream of income. Clearly, they see the world through dark lenses.  With the continued improvement of the economy, the Olympics in the summer, and the Presidential elections, advertisement spending and industries that rise and fall with who gets elected are a boon to anybody with media property. There’s no better time than right now to own a blog as more and more advertisement dollars get spent online. If you have a chance to buy a blog for less than 2X yearly revenue, do so with abandon. In the same token, there will be richer valuation acquisitions of personal blogs by big corporations due to the increased value of media properties.

Analysis: According to Forrester Research, online advertising spend in the US increased by more than 17% in 2012 to $12.7 billion. That’s just the US folks and the web is global! Online ad spending is predicted by Forrester to grow by over 15% compounded annually and reach $27 billion by 2017. The trend is your friend. If you want to make money online, perhaps you should have a web presence? I’m so bullish on online media, maybe I will be able to achieve my 20 hours a week / $200,000 a year goal sooner than within three years. I sure as hell am going to try!

6) Five more Members of the Yakezie Network give it a go as full-time bloggers leading to a flood of followers. 

The longer you have your blog, the more valuable it becomes. With one more year under each Member’s belt, coupled with the increase in advertisement spending all year, each Member sees their income rise by another 30-50% on average. Earning $50,000+ a year through their sites becomes common place, as Members know how to leverage the Yakezie Network and brand to their own advantage. We’ve launched our Yakezie Blogger Services for those interested in starting a blog as well. All are great people who provide competitive pricing and do solid work. The problem with these financial success stories is that many more will fail because they think it’s so easy, enriching the “how to make money online” marketers even more.

Analysis: Hmmm, besides me, who else in the Network has quit their jobs to work on their own online endeavors? Kevin from Invest It Wisely did to start Digipom, a Android mobile app device company. Joe from Retire by 40 quit at the age of 39 after 17+ years at his high tech company to spend more time with his family. Jeff at Money Spruce left New Haven and moved to Portland to try his hand at freelancing. Shoot, that’s only four! I know I’m missing someone else. Let me know! What makes me super pumped is that people are doing what they want to do. Folks are working their butts off, taking calculated risks, and going for things against conventional wisdom. Way to go guys!

7) Social Media is one of the worst performing sectors. 

You’ve already made a triple in Twitter in 2011, now it’s time to cash out. The amount of competition in every single space is obliterating returns quicker than a Congressman’s mistweet. Social Media fatigue sets in, and there’s no more desire to “check-in” at your favorite bar due to stalkers. You resist tweeting your delicious meal due to an unknown follower compiling a compendium of what you eat. And you no longer update your Facebook page due to story after story about someone not getting a job thanks to what they posted. Privacy becomes King. The company who maximizes privacy insurance, or enables privacy insurance wins big.

Analysis: The bubble burst. Zynga and Groupon are down well over 65% this year. The Facebook IPO went from $38 down to $18. Private social media companies are having to dilute existing shareholders at value down funding rounds. Social Media has indeed been one of the worst industries to invest in this year. At least billions of dollars of value has still been created with employee lockup expirations. Well, just don’t remind Zynga employees how senior executives were able to cashout at $13 in Spring while everybody else was left holding the bag.

8) US housing is one of the best performing investment classes. 

After five years of softness and pent up demand, US housing finds a strong footing. The US homebuyer shakes free from paralysis, and the international homebuyer takes the plunge given how incredibly more expensive housing is in Moscow, London, Hong Kong, Singapore, Beijing, Shanghai, Singapore, and even Canada now. A $25,000 rental income stream used to be valued at $500,000 on a cap rate of 5%. Now it’s worth $833,000 based on 3%, but prices have barely moved, yet.  People do the math and wisen up.

Analysis: US housing is coming back with a vengeance. San Francisco rents are up over 15% while property prices are up anywhere from 5%-12% in the Bay Area. You are hearing the same anecdotes from “superstar cities” such as New York City, Honolulu, and some of the best locations in LA and Chicago. These cities lead the charge, and the rest will follow. National home prices are up 6% in October year over year, the biggest jump since June 2006. If you don’t need to sell your house, please don’t. Refinance your mortgage, enjoy life, and wake up 10 years from now with a heck of a lot more net worth. 

See: Invest In Real Estate Crowdfunding

9) Mobile technology becomes the place to invest and work.  

The market for mobile software surges to some $20 billion dollars in 2012 from just $4 billion in 2011. Companies can’t find mobile designers and software engineers fast enough as there is no doubt mobile computing is here to dominate.  Starting salaries for 24 year old graduates with 2 years of experience easily surpasses $100,000 a year, which begs the question: If you want a job, and want to get paid, why wouldn’t you just get good grades and learn some programming skills? Venture capital pours into the mobile space like it did in the social media space and new mega fortunes are made. Google, Facebook, and Twitter is so 2011!

Analysis: Thanks to the Cloud, handset growth, technological innovation, and income growth in emerging markets with billions of consumers is driving mobile to new heights. If you want to make six figures, become a mobile engineer. If you’re thinking of starting a startup, consider doing something that tightly involves mobile. Pretty soon, we are going to do everything on our mobile devices, especially for those who have leveraged the internet to create new careers online.

10) You will find love, fortune, and a flatter stomach. 

2012 is a year to stop making excuses as to why you can’t find a suitable companion, why you still don’t have a road-map to financial freedom, and why you still aren’t as fit as you like. If you’ve seen the show The Biggest Loser, you know losing weight can be done if you want it. If you observe carefully, even the least attractive and poorest of people find great love. Meanwhile, people are getting rich every single day. I strongly believe that if you continue to read Financial Samurai and Yakezie all year, you will read informative articles that will help you get there. Writing about relationships, career, and fitness are favorite topics here.

Analysis: I hope you all did find love, a little bit of fortune, and a flatter stomach. I finally got below 160 lbs, after being 167-170 for 13 years after college. I gained half of it back after going to Europe for 2.5 weeks though! It feels good to feel lean again and I don’t plan to get up there again, although I cannot resist stuffing my face with all you can eat French Cruller donuts and lemon meringue pies, so don’t temp me! As for fortune, my income is lower since I no longer work.

However, my freedom is higher. I no longer have TMJ, grind my teeth, or chronic tennis elbow because my stress is much lower nowadays. As for love, I’ve always had love with my immediately family and friends. I hope you all have found new love, more fortunate, and a flatter stomach as well!

Related: The Health Benefits Of Early Retirement Are Priceless

MY PERSONAL YEAR IN REVIEW 2012

* Retired from the corporate world after 13 years.

* Became poor by resetting to zero, but then positioned myself as middle class because being poor doesn’t feel too good.

* Wrote a 200-page book on how to profitably quit your job by teaching folks how to negotiate a severance package. Please never quit, always get laid off instead.

* More than tripled average daily traffic on Financial Samurai with the help of a 50% increase in total content.

* Travelled for 2.5 weeks to various parts of Scandinavia and St. Petersburg to research the happiest people in the world.

* Went undefeated in league tennis and our team won the City Championships. Getting back in shape helped a lot.

* Did not give up.

THINGS FEEL RIGHT

It’s always a little strange to review something you wrote one year ago. Wouldn’t it be amazing if we knew then what we know now? We’d rule the world! To bad we don’t have a Delorean.

I encourage every single one of you to write down your predictions for 2013. You will be forced to think in rational thought as you predict the future, in order to make profitable financial bets. Don’t just sit back and wait for my predictions for 2013. Make your own because all of us are in different financial stages with different needs and desires.

Hope is not a strategy for achieving financial freedom. You must meticulously plan. Don’t be intimidated by numbers. You can be wrong. Just make sure you know why! I hope you enjoyed my Financial Samurai 2012 predictions recap.

Passive Income X Factor – Starting Your Own Site

It’s been one 12 years since I started Financial Samurai and I’m actually earning a good passive income stream online. The top 1% of all posts on Financial Samurai generates 31% of all traffic. The average age of the top 1% posts is 2.3 years old. In other words, after putting in the hours to write some very meaty content over two years ago, 10 posts consistently generate a monthly recurring income stream that’s completely passive.

I never thought I’d be able to quit my job in 2012 just three years after starting Financial Samurai. But by starting one financial crisis day in 2009, Financial Samurai actually makes more than my entire passive income total that took 15 years to build. If you enjoy writing, connecting with people online, and enjoying more freedom, see how you can set up a WordPress blog in 15 minutes like mine with my step-by-step-tutorial.

Pro Blogging Income Statement
You can start your site for next to nothing and potentially make a lot of extra income. This is a real example.

Sign up for my free Financial Samurai newsletter here. Also, check out my top financial products page to find the best products for your finances.

There Is No Monopoly On Being Rich: Adopt A Wealth Mindset

Updated: 04/01/2021 by Financial Samurai 49 Comments

Oakland Bay Bridge Sunset

To get rich, you need to adopt an abundance mindset. There is no monopoly on being rich!

I’d like to think most of you come here because you have a desire to improve your finances, hang out and connect with like-minded folks, and get entertained. Despite some rather highly opinionated posts, there’s not a lot of nasty comments at all.

I am a perennial optimist. Sprained ankle? Thank goodness it’s not broken! Ever since I was about 12 years old, I knew I did not want to be poor. Seeing ubiquitous poverty growing up in third world countries makes me appreciate how lucky we are to live in America.

It was in the 9th grade when a senior told me to stop messing around if I wanted to have a better life. And it was the first month of work that I told myself if I could just survive these brutal 5:30am-7:30pm+ workdays for the next 10 years, that I would be rich.

Thirteen years later, work is but an option. The biggest irony is that in order to stop caring about money, you first have to care a great deal about money. I could have worked for many more years and saved many more dollars, but money is no longer a driving force. I’d much rather have the freedom to do what I want.

It’s been three and a half years since I first started this blog and I’ve encountered a plethora of different attitudes about wealth. Some people believe it’s their destiny to remain poor while others have an unwavering desire to make it big beyond their wildest dreams. If you believe you will always be poor, then that is what you will be. If you believe you deserve to be wealthy, you have an infinitely higher chance of succeeding.

There is no monopoly on being rich. You don’t have to be angry at others who have more. You’ve just got to be confident that you belong and survive long enough to succeed.

“Everything will be alright in the end. If it’s not all right, then it is not yet the end.” – Unknown

Related Posts:

Abolish Welfare Mentality Today

A Day Job Is So Much Easier Than Entrepreneurship

I’m Not Supposed To Be Here… 

Photo: Bay Bridge Sunset, SD.

Overcoming The Price Hurdle To Find Value And Succeed

Updated: 04/01/2021 by Financial Samurai 15 Comments

Priceless Crowns At Rosenborg Castle, Copenhagen

To find value, you need to overcome the price hurdle. Don’t let a pice hurdle not let you see the value of certain thhings.

We all know that it takes money to make money. If you want $10,000 a year in passive interest income at a rate of 2%, you’ll need $500,000 in capital to get there. If you’ve only got $25,000 in capital, well then here’s $500 a year, just enough to buy yourself a round-trip ticket to Hawaii. Wait a minute, that doesn’t sound too bad!

I’ve been highly anticipating the response to my introductory $980 Get On The Map (GOTM) service where I help bloggers and small businesses get noticed on the web.

There’s a lot of art behind the science of pricing. Price too low, and you might be signaling an inferior product or fend off too much demand. Price too high, and you might not get any clients. Finding the intersection between marginal utility and marginal cost is a journey that changes over time.

Going about pricing a product out of the necessity of money vs. the necessity for fulfillment is quite different. I get fulfillment out of helping others by providing more value than the price I charge. That’s what keeps me excited. If I had to sell something to put nutritious McDouble cheeseburgers on the table for five children everyday, I’d feel the heat, underprice and likely provide poor value.

THE VALUE OF TIME IS DIFFERENT FOR EVERYONE



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Zynga Rejected My Application So I Unleashed The FURY!

Updated: 08/05/2021 by Financial Samurai 46 Comments

One thing I plan on doing in retirement is find a potential encore career.  As a computer and internet junky who has built up a reasonable size blog, a foray into the social media sector seems like a natural extension.  I want to make sure that I exhaust all options before I really kick back and harass my father on the golf course a couple times a week.

Applying to positions is so easy now thanks to the internet and LinkedIn.  It takes around five minutes per online application and you will get an e-mail confirmation immediately after pressing send.  For those who don’t know, Zynga is an online social game maker of Farmville, Words With Friends, and other names that rely predominantly on Facebook’s user platform to make money via ads and virtual goods.

Given I’ve been reminded about Zynga with Mark Pincus’ handsome face all smiling down below in my post, “How The Rich And Powerful Become More Rich And Powerful,” I figured why not shoot them an application despite their horrendous reputation for long work hours and ruthless management..  I didn’t talk to Mark at Marissa’s party, but I did swing by their sweet offices once in the SF Design District.

For most of June and July, Zynga’s stock hovered around $5 a share, a 65% decline from its recent March 2012 high of $14.20.  I figured in my ever optimistic self that it was better to get options at $5 than all the poor folks who joined earlier in the year at much higher levels.

And so, between scrubbing my chiseled pecs during bath time earlier this month, I submitted my application.  A couple weeks later I got this rejection letter:

TIME TO UNLEASH THE FIST OF FURY!

I started crying my eyes out when I got the e-mail.  How could they reject someone like me!  I’m a hard working, loyal soldier, who plays Words With Friends for free, and partied with the big boss, Mark Pincus!  Come on now!  Don’t they know who I am?

Like a Prom Queen scorned by a fickle King, I decided that if I can’t have Zynga, NOBODY CAN!  I went into the deepest cracks of my cobwebbed mind to conjure up the most potent of spells. After 20 seconds of practice, I chanted:

“Ommm, howwwww, could, youuu, wrooong, meee ZyngaaaaaaaH.  Youuuuu, muuuust, paaaaaaaay, for this dishonorrrrrr.  Saaay gooodbyeeee to youur leeetle foooze ball tabullll and shittttttay gamezzzzz!”

After the close on Wed, July 25, just days after the spell was cast, Zynga shit the bed and slashed 2012 forecasts by 70%.  The stock tumbled 40% to $3 a share.

Oops, wrong spell!  I meant to just give the recruiter a little morning diarrhea, not blow up the entire company!

Zynga Is Imploding

LESSONS LEARNED

* Don’t make me mad because I have spellz.

* Watch what insiders do.  They sold $500 million worth of stock at $12 in April, 2012.

* Winds change, trends change, tastes change.

* Not all startups will make you rich.  In fact, many start ups will make you poor by wasting your time and underpaying you.

* There are blessings in disguise all the time.  Be optimistic.

* Don’t be overly reliant on one source of traffic (FB).

* When in motion, objects tend to stay in motion.

* Not everything is as it seems.

* You can talk the talk, but bullshit walks.  Numbers are what matters for public companies.

* Don’t be naive.

* There will be casualties of war.

* Don’t take things personally.

* It’s only money.

* Companies are allowed to lie,  “As you know, we are growing rapidly!” Uh, I don’t think so!

Readers, would you work at Zynga?  Do you think there will now be a mass exodus of employees at Zynga, thereby increasing my chances of working there?  Do you think insiders new about the bad trend in April?  Will Zynga survive as a public company a year from now?

Oh, and don’t feel sorry for Zynga executives and major shareholders.  Here’s what they got when they sold in April:

  • Marc Pincus, Zynga’s CEO, sold 16.5 million shares for $200 million
  • Institutional Venture Partners, a Zynga investor, sold 5.8 million shares for $70 million
  • Union Square Ventures, a Zynga investor, sold 5.2 million shares for $62 million
  • Google, a Zynga investor, sold 4 million shares for $48 million
  • SilverLake Partners, a Zynga investor, sold 4 million shares for $48 million
  • Reid Hoffman, a Zynga investor, sold 688,000 shares for $8.2 million
  • David Wehner, Zynga’s CFO, sold 386,000 shares for $4.6 million
  • John Schappert, Zynga’s COO, sold 322,000 shares for $3.9 million
  • Reginald Davis, Zynga’s General Counsel, sold 315,000 shares for $3.8 million
Photo: Bruce Lee in Fist of Fury 2, PD.
 
Update 2020: Zynga is still in the dumps. They can’t innovate or create cool new games on their own.

 

Learn How To Negotiate A Severance Package

 

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So You Want To Be Rich Eh?

Updated: 02/10/2021 by Financial Samurai 34 Comments

So you want to be rich? Glad you’re here. Financial Samurai is focused on getting rich and staying rich.

If you want to get rich, you must practice predicting the future.

If you want to stay rich, you must continuously invest in real assets that hold its value.

Finally, if you want to live freely, you must build a large passive income portfolio to pay for your desired living expenses.

So You Want To Be Rich

In “How Do You Become Rich?“, Finance Fox pens a 1,200 word post on what it takes to reach the promised land.  I immediately checked out the post because I’m always fascinated about how others define rich and how others plan to get rich.

 Eddie’s definition of rich is “having a fortune over $1 million bucks.”  $1 million bucks is a good amount of money, but at what age? At 35, that’s pretty darn rich. At 70, not so much. Getting rich is relative.

Eddie then goes on to ask what is the secret of successful rich people?  My answer is almost always, PERSEVERANCE. The ability to solider on and not give up even in the worst moments.  

Every single wealthy person I know has had some tremendous disappointments in their lives, but they don’t stop trying.

The more critics there are, the greater the wealthy person’s fire is to succeed.



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What I Learned While On Sabbatical

Updated: 08/31/2021 by Financial Samurai 39 Comments

Baker Beach San Francisco Golden Gate Bridge

Just like that, 30 days have gone by and my sabbatical is over. I truly enjoyed my time off and have learned a number of things I’d like to share with those who are thinking of taking a sabbatical or are just curious in general.

I haven’t taken more than two consecutive weeks off since the summer after college and I highly encourage everyone to take a sabbatical if they’ve been working for at least five years.

What I Learned While On Sabbatical

* Free time is joy.  The best feeling of being on sabbatical is knowing that nobody is there to tell you what to do.  You don’t have to set an alarm clock and you are free to plan your day and week as you see fit.

* There are plenty of people wandering around during the day.  It didn’t matter when I went out to do errands, play tennis, go on a hike, or whatever between 7am-5pm, it was always crowded!  A bullish sign for the economy no doubt as you read on.



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