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Slicing Through Money's Mysteries

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The Difference Between Three Types Of Corporations

Updated: 03/20/2023 by Financial Samurai 38 Comments

Starting a business to grow your nest egg - three types of corporations

If you’re about to go out on your own and create a business, congratulations. Becoming an entrepreneur, especially an online entrepreneur is a good idea in this environment. When the government can’t shut you down due to a pandemic or whatever reason, having an online business becomes more valuable.

Before you start on your entrepreneurial journey, it’s important to understand the difference between three types of corporations.

Once you cross over to the side entrepreneurs and others who make the economic engine run, you’ll wonder why you didn’t start sooner. Salaried employment is great for some people, less so for others.

But if you’re going to be an entrepreneur, do it right. There’s more to creating a business than buying a license (you do know you have to buy a license, right?) and creating a website

A Business’ Legal Entity Is Important

Most general contractors, plumbers, electricians, gardeners and graphic designers who set up shop don’t even think about what legal form their new business is going to take.

That’s legal “form” as in “organization or arrangement.” We’re not talking about a piece of paper you have to fill out, at least not directly.

Making the wrong decision about legal form can cost you serious money even before the first sale. You might have learned the terms “sole proprietorship” and “corporation” back in high school. They probably meant nothing to you then.

But now it’s important to understand what they mean. Every entrepreneur should know the pros and cons of the three types of corporations specific to your situation.

Avoid The Sole Proprietorship Default Route



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Buying Blogs, Selling Blogs: How I Built My Blogging Business

Updated: 08/12/2021 by Financial Samurai 83 Comments

Building a blogging business and making money from blogging is one of the most attractive opportunities in the new decade. Buying blogs makes a lot of sense post pandemic.

A blog can be a very lucrative business, especially since it cannot be shutdown. When a blog can stay open 24/7 during a pandemic, of course the reliability of its revenue increases.

Further, with interest rates so low, the valuation of blogs has gone way up because blogs are high margin businesses. When you have a cash cow, please hold onto it for as long as possible, especially in a low interest rate environment!

Below is Mike’s story on how he built a blogging business running his own sites, selling blogs, and buying blogs. Today, I’m much more partial to buying blogs rather than selling blogs.



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Good Small Business Venture Ideas To Make Money

Updated: 06/29/2021 by Financial Samurai 18 Comments

If you’re anything like me, you’re constantly thinking about good small business venture ideas to make money. Through either addressing an unmet need or making something better or inventing the next Facebook, you could be deriving a nice side-income outside your routine day job and have an eventual payday down the road when you want to quit or move on to the next thing.

I just watched The Social Network the other night and it put me in the mood to start thinking more about business startups again. I’ve split out a few ideas and ventures I’m involved in by “Old Economy” and “New Economy”.

They can both earn you a handsome income and even turn into a full-time gig. The New Economy ventures tend to be more “Scalable” though.



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Making Money From Home And Supporting A Family Just Got Easier

Updated: 03/31/2021 by Financial Samurai 20 Comments

Making Money From Home And Supporting A Family Just Got Easier

Making money from home is more important than ever thanks to the pandemic. If you have children to support, then making money from home is what you need to do.

Why wife and I have been making money from home technically since 2009. 2009 is when Financial Samurai started. Since 2009, Financial Samurai has grown into one of the leading independently-owned personal finance sites in the world with over 1 million organic page views a month.

Making Money From Home

For many couples who want to start families, it’s getting increasingly harder to do so without sacrificing a lot financially.  Education costs for kids are soaring and it now takes two incomes to afford a home in many big cities rather than just one 30+ years ago.

The nagging question on a lot of couple’s minds is, “Can we afford to have one person stay at home to raise the kid(s)?”  An equally common question is, “Can we afford to have kids at all?”  It’s kind of sad that many well-educated and well-paid couples have these thoughts. Part of the reason why I’m working so diligently on building up Financial Samurai and Yakezie.com is because my spouse or I would like to have something to do if one of us decides to one day stay at home and raise a family.

After 12 years of blogging, I know that making money online is possible. I’m now earning in the multiple six figures a year online in 2016. Not only that, it gives the stay-at-home spouse something exciting to do for several hours a day, in addition to raising the kids. Working from home while being able to raise a family is an enormously attractive proposition and I’m excited to present another way to do so!

A KILLER PRODUCT TO HELP GET US THERE



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Real Entrepreneurs Are Successful, Don’t Kid Yourself

Updated: 03/30/2021 by Financial Samurai 61 Comments

Enjoying the lifestyle of an online entrepreneur in Hawaii

Are you a real entrepreneur? Because frankly, real entrepreneurs are successful. If you can’t generate enough business income to live, then you probably are not a real entrepreneur. There’s nothing wrong with that. Just don’t kid yourself into thinking you are.

According to the dictionary, “entrepreneur” is a term applied to a person who is willing to launch a new venture or enterprise and accept full responsibility for the outcome. What the hell does that mean?  We all start things and accept responsibility for the outcomes, unless of course we don’t because we expect handouts if things don’t work out.

As far as I can tell, many of us want to be entrepreneurs because it sounds so sexy. We dream of starting the next multi-million dollar company, get recognized by Entrepreneur Magazine, and earn a fortune in the process.  Yet, this type of success is unlikely for many of us.  We don’t have a great business plan, we run out of capital, we don’t have charisma, and we lack the perseverance to keep on going.

The Real Entrepreneur Dilemma



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The Comfortable Lifestyle Business Or The Big Payout?

Updated: 03/24/2023 by Financial Samurai 65 Comments

Contemplating the Lifestyle Business In Hawaii - The Comfortable Lifestyle Business Or The Big Payout?

Back in late 2010, I had a dilemma. I was wondering whether to have a comfortable lifestyle business or the big payout. I’m pleased to say that 13 years later, I’m still happily running Financial Samurai as a comfortable lifestyle business.

Sure, I’m not crazy rich. But I feel rich. More importantly, my wife and I have the freedom to do what we want.

One Night At The Poker Table

Over poker one night, we got to talking about what we always talk about: entrepreneurship.  

Out of a table of 10, four work at start-ups, three are at Google, one is a high-tech lawyer, one works as a medical correspondent for CNN, and then there’s me, a hybrid. I had just got done working on Yakezie.com for three hours after working an 11 hour day. Needless to say, I was a little bit tired.

I love going to Friday night poker mainly because I get to bounce ideas off of really smart and incredibly hard working people. 

When I hear stories of one start-up player working from 7am to 3am every night for two weeks straight to launch a product offering, I get pumped. When the Venture Capitalist player recounts his firm rejecting a pitch by Tim Westergren, Pandora’s founder in 2008, I wince, but daydream in amazement.

The Comfortable Lifestyle Business Or The Big Payout



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Small Business Owners Encouraged To Fire Employees Before Tax Hikes

Updated: 04/07/2021 by Financial Samurai 65 Comments

Small business owners rock. The Bay Area is full of entrepreneurs and small business owners making the work work. The pandemic has made the value of online businesses more valuable. The simple reason is that you can’t shut down an online business!

I originally wrote this post on August 26, 2010, a year and two months after starting Financial Samurai. I was dismayed at higher taxes.



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The $300 Million Dollar “A” Yacht Owned By A Russian Billionaire

Updated: 06/10/2020 by Financial Samurai 64 Comments

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!

* 25,000 square feet of total living space

* 2,500 square foot master bedroom suite

* 160 foot long main hallway

* 62 feet wide

* 6 cabins in addition to the owner’s master bedroom suite

* 3 speed boats

* 3 mini swimming pools

* A crew of 37 and staff of 5

* Can outrun pirates (or the Russian IRS) with a top speed of 24 knots

* Costs $500,000 to fill up the tank of gas

* Costs $20 million a year to operate

* A secret escape pod to outrun the pirates or the Russian IRS

* A secret “nookie” room for indiscretions with other super models

TOTAL INSPIRATION

Some people might say this $300 million yacht is an absolute monstrosity and that $300 million could have been spent helping save the world.  Yes, Andrey could have spent the $300 million on someone else, but shouldn’t he have the right to occasionally indulge?  Andrey already donates millions of dollars a year to charity and he’s living the dream because he can.

I used to drive to the toniest of neighborhoods in San Francisco and walk around the neighborhood just admiring the mansions.  Whenever I felt down and out, these mansions would pick me up.  If you happen to be in San Francisco, tell the cab driver to drop you off at Broadway St. and Lyon.  Bring your running shoes too as you’ll arrive at one of San Francisco’s most popular workout routine.

The street is littered with $25-50 million houses and I just gawk in amazement.  Do I envy these mega millionaires?  Not at all.  They give me inspiration to work harder and make it on my own.

YOU KNOW YOU WOULD TO

I don’t know about you, but if I was worth $4.4 billion dollars I’d happily own this mega yacht as well.  Furthermore, I’d probably own 20 different properties around the world where I’d sail to for 6 months of the year.  Of course, for the other 6 months of the year I’d be building my online blogging endeavors so I can diversify my income stream (I kid)!

Oh yeah, I forgot one thing.  If I were a billionaire and owned this mega yacht, I’d immediately fly over all the members of The Yakezie Network and party it up all weekend long!  OK, all month long!

Readers, if you were a billionaire, what kind of indulgences would you splurge on?  What are some of the things the rich do to inspire you?  To look at more pictures of the “A” yacht, check out the WSJ’s feature!

Regards,

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

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Book Review: The Other 8 Hours

Updated: 03/27/2021 by Financial Samurai 24 Comments

The Other 8 Hours is an inspirational book by Robert Pagliarini, author of The Six-Day Financial Makeover and president of Pacifica Wealth Advisors. You may have seen him on Dr. Phil or 20/20.

Publisher & Book Info: St. Martin’s Press, hard cover, 301 pages

Review: The Other 8 Hours

The main premise for The Other 8 Hours is that everybody’s day is split into three eight hour parts: work, sleep, and everything else. Rob’s hope is to get you motivated to do more during the everything else portion to maximize your own potential. 

First of all, I don’t know anybody who only works 8 hours a day. 10 hours of work a day seems more realistic. Second, who gets to sleep 8 hours a night? Sounds like elusive bliss to me. Money never sleeps, so why should you?

Let’s assume 6 hours of nightly sleep instead, which ironically leaves the same 8 hours of time for everything else!

The Other 8 Hours is an enjoyable read because each chapter contains not only practical advice, but real life inspirational stories to help motivate readers to action. Too many times we just come home, plop on the sofa, and do nothing. That’s no way to live. 

Below are Rob’s top 10 things he recommends doing with your spare time to help increase wealth and purpose.

Top 10 Creator Channels:

1) Blogging

2) Inventing

3) Writing Books, Screenplays, Music

4) Starting A Company

5) Reselling, Affiliating, and Licensing

6) Taking Advantage of Fads/Stunts

7) Working for Stock in a Company

8} Advancing or Jumping Careers

9) Freelancing

10) Turning Hobbies into Income

Blogging definitely has the potential to earn you a few shekels with enough time and dedication. I’ve daydreamed about sitting on my yacht somewhere in the south of France writing to you about saving money on champagne and caviar! Then reality sets in. However it’s always good to dream.

The item that most interests me is #2. Rob dedicates a chapter to each of his 10 creator channels, which is very useful because many don’t know where to start. He provides a road map, highlights the pitfalls, and ends each chapter with actual resources you can use. For inventing where do you go to develop a prototype, receive independent reviews, and hire an agent? Many answers are all addressed.

A Warning That Needs Following

One of Rob’s key messages, which I wholeheartedly agree, is to NOT jump head first by quitting your job and investing everything you have in your business idea. I’m sure there will be plenty of those will disagree with this premise. How can you succeed if you don’t put everything you have into your idea? You can, but simply during the other 8 hours!

We always hear the tremendous entrepreneurial success stories, but we seldom ever hear of the failures. Trust me, there are tons of failed ideas. And if you were to invest everything you have in a failed idea, it’s going to take a lot for you to get back to your previous financial state. 

Be methodical in your approach, test out your product thoroughly, and make sure you see signs of success before you quit your full time job.

The Other 8 Hours Conclusion

Who wouldn’t want more time, more money, and a better life? It’s simplistic to say a book will give you all that.  However, The Other 8 Hours helps provide a catalyst to get you going. You won’t just read a book that tells you what to do. The Other 8 Hours helps shows you how.

Do you think quitting your job to dedicate everything to your side project makes sense?

Regards,

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

Further Reading

  • Deflation Is Out Of The Question
  • Switching Gears For The Summer
  • 200th Post And A Thank You To All Readers!
  • Holy Crap! Taxes Are Due Soon!
  • Advertising For A Cause

The Samurai Mask: An Interview With The CEO of BULLDOG Gin

Updated: 02/19/2020 by Financial Samurai 18 Comments

A Brazen Breed of Gin

I’m pleased to highlight a new series of articles focused on understanding the thoughts of successful entrepreneurs. For our inaugural series, entitled, “The Samurai Mask,” I speak with the CEO and Founder of BULLDOG Gin, Mr. Anshuman Vohra, 31. “Shu” was once a JP Morgan Banker who gave up his lucrative career to start BULLDOG Gin three years ago. I was very inspired after watching his story about overcoming rejection on Donny Deutsche’s “The Big Idea” and I’m pleased he’s here with us today.  This is his story about finding entrepreneurial success, and going against the odds. I invested $61,700 in BULLDOG Gin in 2007. 

INTRODUCTION

FS: Shu, thanks for taking the time to speak. First of all, tell us about BULLDOG Gin, and why it is such a hot product?

Shu: It’s good to speak to you and it’s an honor to be the inaugural interviewee for your new series.  BULLDOG Gin is a quadruple distilled, ultra premium gin with dragon eye and other distinctive botanicals. This is not your old folks gin, but a younger, brazen breed of  gin that you can imagine Steve McQueen and James Bond drinking.

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