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Is It Better To Rent To Males Or Females?

Updated: 04/26/2021 by Financial Samurai 63 Comments

Nobody quite understands the challenges of being a landlord until they’ve been one. Finding ideal tenants is top priority, and it’s not always easy. I’ve been for over 13 years now and have some crazy stories. In your search for tenants, you may be wondering whether it’s better to rent to males or females.

First of all, don’t rush the tenant screening process regardless of a tenant’s gender. It can be easy getting tenants in, but it can be near impossible getting them out.

Time To Find An Ideal Tenant Again

One night back in 2010, I remember getting t a written notice in the mail informing me that my tenant of 2.5 years was moving back East. I wondered, how could he leave paradise to move back home to the sweltering heat of New Jersey?

I’ll never know. Anyway, I was really sad to see him go because he was as close to the ideal tenant as possible.

Ned always paid on time. He was quiet, didn’t have raging parties, and never bothered me to come fix anything. OK, so there were a couple times he needed an extra week or two to pay rent, but in the end he always delivered.

What I Look For In A Tenant As A 13-Year Landlord

I’ve learned a lot about the tenant vetting process over the years as a landlord. I currently own three rental properties in San Francisco, where I’ve lived for around two decades.

Here’s a list of attributes I look for in a tenant when I’m reviewing rental applications. Note, my initial screening does not pay attention to whether or not I should rent to males or females.

Great credit (680 or higher, and the higher the better).
Not a psycho killer or a clearly mentally unstable person. You know the ones with crazy eyes when you talk to them.
Has a stable source of income, which could include interest income if s/he has no job.
Good prior landlord references.
Has enough money in the bank to cover at least 18 months of rent if he/she lost their job.
Longer than 1 year duration at his or her job. Longer the better.
A pleasant demeanor, i.e. not an axe murderer or an asshole.

If a candidate possesses all of the above attributes, I’m more than likely to rent my apartment to them.

It’s really not worth taking a risk on a poor tenant only to miss out on months of rental income due to non payment, or litigation!

Now, the next question I have is whether it’s better to rent to males or females and whether it matters at all? Let’s discuss.

Who Makes Better Tenants: Males Or Females?

As a landlord, all you want are three main things.

On time payment
Zero complaints
Minimum wear and tear

In other words, if I could rent to a robot who doesn’t have to move and always sends me a check electronically on time, that would be the best!

1) Dependability

Dependability is pretty much a wash between men and women. Men are just as flaky as women. And women are just as dependable as men. Usually.

Actually, if I exam all the females I know, they are all pretty damn dependable. Whereas some of the guys I know just tend to be complete flakazoids who are never on time. OK, women are favored here 60/40.

2) Complaints

Men tend to pride themselves on being able to unclog the toilet, change light bulbs, fix holes in walls, and paint. Women, typically not so much.

I’ve heard stories from other rental property owners where women will call their landlord to squash a spider. Come on now, a spider is like 1/1,000,000 the size of you! Men get the nod 70/30.

3) Wear And Tear

This is a tricky factor to determine whether it’s better to rent to males or females. Men tend to enjoy throwing parties with lots of loud music and fountains of alcohol. For example, keg parties, strip parties, bachelor parties, birthday parties, you name it!

I rented my house to 5 guys once. It was a complete disaster. The neighbors constantly called me complaining about them throwing parties. They didn’t abide by the lease terms on noise, staying off the roof, etc. And man were they total slobs. They stained and scraped the floors and walls, bashed a hole in the wall, cracked my tile floor, etc.

Not only that, they bought used furniture on Craigslist that was infested with bed bugs and then tried to blame me for the infestation. When I finally got them all out, I said never again!

Women don’t throw ragers as often as men for some reason. Furthermore, it is the unmarried woman who tends to sleep over at the boyfriend’s house more often than vice versa. Hence, there typically is less wear and tear if you rent to a woman. And therefore women are 70/30 favorites when it comes to wear and tear.

Related: How To Deal With Bad Tenants

Conclusion

Based on my three variables, there’s no perfect answer on if it’s better to rent to males or females. You may be having having trouble deciding which is the safer sex to rent to as well.

Women generally just seem so much more respectable and less violent. How many serial killers do you know are women? In the movie “Pacific Heights,” Michael Keaton was a man and not a woman.

My gut tells me women are better, but the funny thing is my last tenant of 2.5 years was a man, and he was great! Ultimately, you’ve got to look at your prospective tenants individually, regardless of their gender.

Do a thorough background check. Call and review all their references. Verify their employment. Have multiple conversations with them. Make them get renters insurance. And go with your gut. If they are annoying you from the beginning, they will highly likely drive you even more crazy over time.

* Please note that it is illegal to discriminate against a potential tenant based on sex, race, or creed. However, it is legal to ask a question and wonder out loud.

Recommendations

Here are some additional recommendations to help you save money and improve your financial health.

Refinance your mortgage

Check out Credible, my favorite mortgage marketplace where prequalified lenders compete for your business. You can get competitive, real quotes in under three minutes for free.

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Explore real estate crowdfunding

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They allow everyone to invest in mid-market commercial real estate deals across the country that were once only available to institutions or super high net worth individuals.

Fundrise is the pioneer of eREIT funds and they are creating an Opportunity Fund to take advantage of tax-efficient Opportunity Zones.

Thanks to technology, it’s now much easier to take advantage of lower valuation, higher net rental yield properties across America. I’ve personally invested $810,000 in real estate crowdfunding to earn income 100% passively. Fundrise is free to sign up and explore.

Fundrise Due Diligence Funnel — Less than 5% of the real estate deals shown gets through the Fundrise funnel

The Top Schools In The Nation Are All Party Schools!

Updated: 03/23/2021 by Financial Samurai 52 Comments

Let’s look at the top schools in the nation. Could it be that the top schools are all party schools? It looks like it!

The Top 20 Party Schools In The Nation, Ranked By The Princeton Review For 2021:

University of Wisconsin-Madison
West Virginia University
University of Illinois at Urbana-Champaign
Lehigh University
Bucknell University
University of Iowa
University of Mississippi
Syracuse University
Tulane University
Colgate University
University of California―Santa Barbara
University of Delaware
University of Rhode Island
Wake Forest University
College of Charleston
University of Maine
University of Vermont
University of Florida
University of Colorado―Boulder
Florida State University

What do Penn State, Texas A&M, University of Illinois, Purdue, and Arizona State University have in common? They are considered the Top 5 best schools in the nation according to recruiters! Wall Street Journal has this unique ranking system where they essentially ask corporate recruiters to rank their best schools.

I’ve seen a lot of college surveys before, and not once have I ever seen any of these schools in the Top 5, let alone in the top 10. Let’s be honest, for the same cost, would you go to one of these schools over Harvard, Yale, Penn, MIT, Michigan, or Berkeley? Most would say “probably not,” so what gives?

Let’s have a look at why recruiters are so excited about these schools.

* Size. The average student population of the top 5 schools is around 28,000. This means that out of a class size of 7,000, there’s a higher chance of finding someone they like.

* Sports. The top 5 schools all have big time basketball and football programs. Americans are obsessed with sports, which is why every single one of you should also play and at least follow sports.

* Public. All five schools are public schools. We are in a period where it’s all about the middle class and not standing out. Anything private, that costs more than the average annual income of an American isn’t going to fly.

* Competition. It’s much easier getting into these top 5 schools with an average acceptance rate of ~50% vs. 15% for the traditionally accepted top schools. As a result, there’s a less “the world owes me” type attitude as students are more humble and eager to please their perspective employers.

* Representation. Being a recruiter isn’t exactly the hardest job in the world to land. As a result, there is a high likelihood that most of the recruiters come from the very schools they have voted to the top! We all want to take care of our own, and recruiters are no different.

CONCLUSION

Surveys are great because they can be manipulated to suit the surveyor’s beliefs. Everybody looks out for their own, and the Wall Street Journal is no different. Look into the management of the WSJ and I’m sure you’ll find one of them who is an alumni of their Top 5. The top schools in the nation really are party schools.

Penn State, Texas A&M, University of Illinois, Purdue, and Arizona State University are all fine schools. They just aren’t the top schools the WSJ believes them to be, otherwise they’d have the most Rhodes Scholars, Fulbright Scholars, Nobel Laureates, endowments, and so forth.

Frankly, the WSJ might as well rank colleges by their proximity to the Pacific Ocean! Now that would be a great survey! Did you go to one of the top schools in the nation?

Recommendation To Build Wealth

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After you link all your accounts, use their Retirement Planning calculator that pulls your real data to give you as pure an estimation of your financial future as possible using Monte Carlo simulation algorithms. Definitely run your numbers to see how you’re doing. I’ve been using Personal Capital since 2012 and have seen my net worth skyrocket during this time thanks to better money management.

Refinance Your Student Loans

Refinance your student loans today. Check out Credible, a student loan marketplace that has qualified lenders competing for your business. Credible provides real rates for you to compare so you can lower your interest rate and save. Getting a quote is easy and free. Take advantage of our low interest rate environment today! The top schools in the nation tend to be very expensive.

Should I Go To Public Or Private University?

How To Get Into An Elite Preschool Or Private Grade School

Student Loans For College Are An Inevitability

Presidential Election Time: Policies To Win America’s Vote

Updated: 01/04/2023 by Financial Samurai 31 Comments

The latest presidential election was won by Joe Biden. Biden beat Trump’s re-election bid due to various issues. We should expect households making over $400,000 to pay a new tax rate of 39.7% eventually.

The presidential election is just days away! This is when candidates start hamming it up and telling us all the great things they will do for us to gain or retain power. My favorite policies are ones that redistribute money from those who’ve earned it to those who haven’t. That rocks!

Given politicians love power, I hereby declare my wish list of things if they promise to do, will buy my vote. Everybody needs to think about what type of goodies you want from the government as well. For those of you who have the privilege of paying federal income taxes, do not let your tax dollars go to waste! You will be thrown in jail if you do not pay your federal income taxes, so it’s important to demand concessions.

Obama and Mitt, if you’re still reading my site (I see those White House IP addresses hit on occasion), think long and hard about my list of demands. Mitt, you should be especially vigilant because my crystal ball says you are on track to lose big time. Obama is doing a much, much better job convincing the middle class he will provide us more benefits. You don’t want to waste all that time and donor’s money again now would you?

TOP 10 WISHES TO GET MY VOTE For The Presidential election

1) Guarantee 100% of Social Security benefits will be there for everybody under the age of 40 by reducing Social Security benefits for all current recipients except for my parents, friends, readers of Financial Samurai who’ve registered for my e-mail or RSS feed, and people I like in general. We must make hard choices on Social Security now! Spread the burden to all, and not just to folks working today who don’t believe they’ll receive Social Security when they retire.

2) Implement free health care for every single person in America and pass the cost on to the Axis of Evil! Goodness knows they can afford it, which is why I didn’t mention Europe. Oh crap, they are screwed, but so happy too! Health catastrophe is consistently one of the top reasons for personal bankruptcy. It is not fair that wealthy people get to jump the line to get rare transplants. We need equality in healthcare because so much of survival is hereditary, except for when we eat lots of donuts and don’t exercise.

3) Pass a law enforcing all Americans to buy at least $3,000 a year worth of products from Bay Area companies. One MacBook Pro 13″ for $1,699 gets you 57% of the way there! Heck, one unlocked 16GB iPhone 5 costs $700 after tax and people are queueing up like crazy! We need more money pumping into the San Francisco area to kick start wages, increase property prices, and jack up rents. If you are sick of Apple products, then make some transactions on eBay or Paypal to generate some commissions. While you’re at it, ask yourself how can the economy be bad if millions of people can afford products they don’t need?

4) Force all corporates who’ve shown at least 25% year over year earnings growth for the past 3 years to increase hiring by 15%. There is more cash on corporate balance sheets than ever before. Furthermore, introduce tax incentives for small business owners to hire more people instead of penalizing them. The government will hunt the highest income earning people down for not paying 39.6% in Federal income tax, why not threaten to incarcerate the bosses of very profitable corporates for not spending their profits on hiring people now? Bust out the big stick!

5) Increase the amount of bailouts for homeowners to encourage more people to buy homes. We need to jump start the property market, so why not comfort on-the-fence buyers they can’t lose? Moral hazard be damned! Housing and employment are two peas in a pod. Force Fannie & Freddie to forgive more mortgage debt and force banks to reduce mortgage rates for all types of homeowners, not just primary home owners. Refinancing a mortgage takes forever nowadays. Meanwhile, so many underwater homeowners cannot refinance despite never missing a payment. Let’s make greedy banks share the wealth!

6) Raise the Golden Gate and Bay Bridge tolls from $6 dollars to $25 dollars to raise city revenue, reduce traffic, and reduce pollution. There’s a perfectly good public transportation system into the city which more commuters should use. To appease car manufacturers and dealers, create another bailout fund for car buyers to decrease the chance of default. Oh yeah, Detroit got that already, so they better not beat the SF Giants in the World Series, or that’s clearly government favoritism.

7) Slap a 1,000% tariff on cigarettes, thereby increasing a cost per pack to from $4 to $40-$90 per pack depending on brand. Surely this will win the presidential election. I love the baked smell of Lucky Strikes, but alas, if I have to pay $90 a pack, I’m not going to smoke them no more. I’ll go cut some grass in my back yard and smoke that instead for free, baby! Everybody knows smoking is bad for you. Let’s try and eradicate the last stubborn few who believe smoking doesn’t accelerate death. Oh yeah, might as well legalize marijuana since it’s all naturale. When I was in Amsterdam, the Coffee Shops banned tobacco and only allowed weed because of tobacco’s carcinogens. We could learn something from the happiest people on earth!

8) Make the 99 weeks of unemployment insurance permanent so that it helps people who know when they plan to retire to count on additional income for 99 weeks once they do retire! There is no way federal unemployment benefits will not be extended in 2013 if the government knows what’s good for them. In addition to the extension, let’s provide another level of unemployment insurance that goes up to 300 weeks for those who’ve worked in humanity-helping fields such as teaching, no-profit, and personal finance blogging. For all those who like to criticize and complain without providing any content, you get nothing, and like it.

9) Raise federal income taxes on those making more than $2 million a year to 70% and implement a 10% per annum added wealth tax for those with net worth of greater than $100 million. It’ll do nothing to close our budget deficit gap, but it will make the 99.9% of us who don’t make such income feel better about ourselves. Imagine all the self-esteem boost we’ll all have! We should never take for granted our ability to impose our religion, our marriage unions, and our tax increases on others. Shit is fucked up and bullshit, but you are the government!

10) Pass a law imprisoning politicians who don’t do what they say on the campaign trail. Lying is wrong. We must hold our leaders to a higher standard. How else do we plan to teach our children about ethics if little Susie can simply say, “Well, the President said this and did the opposite, so why can’t I?” Oh, and before any new taxes are imposed, how about politicians reform their own pensions first? Yeah, baby yeah!

The Presidential Election Is Going To Be Wild

Obama, Joe, Mitt, Paul, all I ask is that you do the following 10 things above. If you do, I promise to vote for you on Tuesday, November 6, and look the other way on other egregious policies. Shoot me a private e-mail if you wish. And to everyone who doesn’t live in California, I thank you in advance for bailing us out just in case we spend way more than we earn again. Go USA!

The Net Worth Of Presidential Candidates

Stock Market Performance By Democratic Or Republican President

Readers, what are your top wishes for our candidates?

Regards,

Sam

The Fittest People May Have The Lowest Self-Esteem

Updated: 07/14/2022 by Financial Samurai 98 Comments

I’m focused with physical fitness right now. As a father of two kids, I want to be fit enough to play with them and live long enough to see them become independent adults. Further, COVID-19 has shown to attack people not in ideal shape. However, I do wonder whether being obsessed about fitness is healthy. Could the fittest people actually have the lowest self-esteem?

Just yesterday I thought, “What’s the point of being thin if I don’t have four pack abs?” And then I started thinking what kind of person thinks about these types of questions? Unless you are a swim model, it’s pretty unproductive and pointless if you ask me.

I’ve come to the conclusion that those with the highest self-esteem may be some of the least fit and most indebted people on Earth. These folks essentially doing give a damn about what anybody else thinks!

Meanwhile, the fittest people who are constantly thinking about their looks, and who are always at the gym exercising and pumping iron may have the lowest self-esteem. They are constantly checking themselves in the mirror to admire their physiques, even though they already know they look fine.

Kind of ironic right? But of course, we all know that being fit and looking good tends to boost self-confidence as well. It’s just fun to look at the other side of the story.

Be Who You Want To Be – A Discussion On The Fittest People

Read More…

Is Unemployment Really That High?

Updated: 04/06/2021 by Financial Samurai 96 Comments

Is Unemployment Really That High, was originally written on 2/3/2011 when unemployment was high during the recession. However, unemployment has skyrocketed during the 2020 global pandemic.

The nearby Kentucky Fried Chicken has a help wanted sign up for the past 6 weeks. I asked the manager how the hunt was going when I picked up my bucket of goodness and he said nobody was applying.

They pay $10 an hour for up to 8 hour shifts a day. That’s $400 a week and $1,600 a month. Not bad right? I think so, even for a city like San Francisco. For $1,600 a month, you can rent a room with a couple housemates for $700 a month, and have $900 a month left over for food and entertainment. Not bad if you’re single.

If you’ve got a family to support, $1,600 in San Francisco is not going to get you very far, which is why many move out of San Francisco to one of the burbs and commute.

KFC’s inability to hire got me wondering: Is unemployment really 10%? Everyday, you see the media drone on and on about how bad the employment market is. I truly empathize with anybody out of work who wants to work. However, if KFC can’t find a position for 6 weeks, perhaps the employment picture is actually much better than perception.

The city of San Francisco is hopping. There is more money out there than you think. I couldn’t get a cab for 50 minutes the other day from downtown to the gym. I gave up and ended up jogging 3 miles in the rain in my work clothes and 20 pound bag. Shit, that sucked. I asked my well-to-do friend who is approaching his 80th week of collecting unemployment insurance how much he gets and how he’s doing. He said roughly $450 a week, which he spends on going out at night. He’s having a great time.

WHAT WOULD YOU DO IF YOU WERE UNEMPLOYED?

Unemployment claims - Is Unemployment Really That High?

I actually think about it once every couple of weeks thanks to the media and my own paranoia. The truth of the matter is, I’d probably collect the maximum amount of unemployment possible in order to find the ideal job. I would hold out until the very end. It’s the rational thing to do. However, when the unemployment benefits run out, I will be the first person to apply for the KFC job and then blog about it!

If for some miracle I had no savings after 10, 15, 20, 25 years of working, I would be the best damn deep fryer on the planet! I used to work for $3 an hour at McDonald’s and know what it takes to be a star in the fast food industry. I’d work hard for my $1,600 a month and I would spend less than $100 a month on food because I’ll be stuffing my face with all the fried chicken, mash potatoes, biscuits, corn, and coleslaw I can! I’d also take home all the leftovers which are thrown out at the end of the day anyway and feed others.

In fact, I would work hard to try and get promoted to manager and potentially double my income to $20/hour or $3,200 a month. I’d still look for that ideal job, but I would also be making the best of my time at KFC.

MAYBE THINGS ARE JUST DANDY

Is unemployment really that high? It’s hard to believe it. Seriously, for all the negativity regarding unemployment, maybe we have very little to worry about. If you are under 40, you can go back and live at home with your parents or relatives. You’ve had the luxury of working for 20+ years before becoming unemployed. Therefore, likely have a huge safety net to last you a while.

Think about it. Saving just $10,000 a year for 20 years, 20 years ago and investing the proceeds probably leaves you with at least $300,000 in savings.

Finally, if you have absolutely nothing, you at least have a 13-month extension of the 99 weeks of unemployment which pay some $1,700 a month in many cities. Once the 99 weeks runs out, there’s KFC for $1,600 a month and free food. Couldn’t you live off $1,600 a month with free food? I know I can.

Note: Just the other day, I was sitting on the ski-lift chatting with a guy. I asked him whether he is taking the week off since it’s a Wednesday, and he said, “Nope! Got laid off in December and am taking the winter off with a great severance package, healthcare, and unemployment checks until I plan to start looking again in April. I’ve already got two job offers but I want to ski!” Now that is the way to live!

What Do You Think About The Unemployment Situation?

Readers, is unemployment really that high? Or is it actually much better than the 10% unemployment rate would dictate? Why do you think it’s taken 6 weeks and counting for the KFC to find someone to work for them for $1,600/month?

If you’re 45 years old and have been working for 23 years, isn’t 23 years of savings enough to hold you through several years vs. a younger person, say 27 who has only had 5 years to save?

Recommendations

I think the best think you can do if you are unemployed is to build a blog and start your side hustle! Post pandemic, you need to learn how to make money from home in case there’s another one. The easiest way to make money from home is with a blog!

Update 2021: Thankfully, the unemployment rate has come down to about 6% as of 2Q2021. Here are the states with the highest unemployment benefits. Personally, I plan to re-retire within 12 months because I’m tired as hell! Here’s to President Biden saving us from a lifetime of too much work!

Regards,

Sam

Who Pays The Bill If You Are A Prospective Client?

Updated: 04/06/2021 by Financial Samurai 59 Comments

Have you ever wondered who pays the bill if you’re a prospective client? I found myself asking this very question when I made plans with a realtor I was considering hiring. It all started when I went to an open house and met a realtor named Sally.

I was immediately drawn to Sally due to her wealth of knowledge. I’m currently very interested in building my real estate portfolio given the lag in property prices and very attractive rental yields vs. borrowing costs.

As a result, we got to talking and we agreed to have a follow up conversation during happy hour sometime in the future. Realtors are always looking for new clients. And I’m always looking to get up to date about the real estate environment. This post is not a topic of whether one should be buying property now. It’s about deciding who pays the bill.

So Who Pays The Bill?

The last time I let a woman pay the bill was never, especially for an acquaintance I hardly know. In fact, even for new male acquaintances, I always pay the bill. It’s just the way I grew up.

I asked the Twitter community whether I should pay or not since I am a prospective client. And I immediately got a range of responses from “don’t be that guy,” to “you are sexist for even thinking about wondering whether you should pay.”

Pretty tough responses, which leads me to believe that sharing any questions I have in public just opens oneself out for attack. I also understand why people shy away from others and keeps things to themselves.

The Reason For Conflict

Read More…

Should I Have Closed My Credit Cards?

Updated: 02/16/2021 by Financial Samurai 49 Comments

Are you wondering: should I have closed my credit cards? By closing your credit cards, you may negatively affect your credit score. Let’s discuss more in this post I wrote after I closed my credit cards.

I did some spring cleaning the other day and found two credit cards in my drawer which I totally forgot I had!

One was a Home Depot credit card I got three years ago at the check out counter because I could save 15% off my $3,000 purchase immediately.

The other card was a Banana Republic credit card that I applied for also three years ago to save 10% off my $1,300 purchase of a couple new suits, shirts, and shoes. Both cards have zero balances, and neither have been used since the initial purchases!

My first reaction was I should have closed my credit cards three years ago. It’s not worth having credit cards lying around that aren’t being used. I don’t want to risk someone getting a hold of them and going crazy buying Brazilian rosewood floors at Home Depot or alligator shoes at Banana Republic or something.

In essence, I wanted peace of mind and so, I closed both credit cards. To my surprise, I didn’t get a hard sell to leave them open. I pressed several buttons on my cell phone and both cards are now shutdown. Ahhh, so nice to not have to worry and have less potential holes to leak wealth. I felt good that I closed my credit cards.

Read More…

Would You Return A Lost 12 Carat, $200,000+ Diamond Ring?

Updated: 02/15/2020 by Financial Samurai 31 Comments

You might have heard recently that an unemployed architect by the name of Mark Epple found a whopping 12 carat, yellow diamond ring when he and his family was skiing in Vail.

The first thing that came to mind was who wears a 12 carat diamond ring? That must be so gaudy! My second thought was what is an unemployed guy doing spending thousands of dollars flying his family to Vail to go skiing? Each lift ticket costs $100, not to mention lodging and food for the family. Finally, I wondered whether I would return the 12 carat diamond ring if I was unemployed.

It’s easy to argue not to return the ring. Anybody who can afford a 12 carat diamond ring probably isn’t hurting for money. It turns out the original owners have a vacation home near Vail, so that sort of proves the point. Based on the new rule of engagement ring buying, a husband can get away with spending up to the value of his car for his bride to be. Cheap car, cheap ring!

And based on my 1/10th rule of car buying, one doesn’t spend no more than 1/10th their annual gross income on a car. In other words, this couple is earning at least $2,000,000 a year. Furthermore, they probably have personal property insurance coverage like so many do with expensive jewelry.

It’s also easy to argue for why one should return the ring. If you lose something of value, you certainly hope someone will have the decency to return what doesn’t belong to them.

I’ve lost everything under the sun before and am so grateful when someone returns my lost item. Furthermore, it’s not like you can easily sell a 12 carat diamond ring without bringing any attention to yourself.

The largest engagement ring I’ve ever seen is 6 carats, and that was just ridiculous. Finally, if you do happen to return something of great value, more often than not the person will likely reward you for your good deeds.

The Minimalist Lifestyle Is Not For You

Updated: 01/02/2023 by Financial Samurai 52 Comments

My name is Florentine and I am what the world describes as a “minimalist.” I can pack all my belongings into two suitcases and go travel the world if I want. I aim to make $30,000 a year from various online projects and consulting gigs, which makes me feel slightly guilty since there’s a hint of hypocrisy.

With an efficiency studio and a bicycle, I don’t need much money to lead a happy life. I want to tell you a secret, which is a secret that many minimalists have, but don’t want anybody to know.

Minimalist Lifestyle

The reason why I deem myself a minimalist is because I have difficulty achieving more. For three years after college, I tried my hardest to work myself up an advertisement company. I was passed up for promotion, and then the recession came.

Instead of telling people I lost my job, I told people “I quit” so I could lead the life of freedom I’ve always wanted. “Screw the world and conformity!”, I told everyone.

I was too ashamed to tell my parents and friends that after four years in college, all I could do was stay a gopher, photocopying papers and answering phones all day. I didn’t even succeed at that.

Read More…

Blink And Blink Again: Your Unconscious Mind At Work

Updated: 02/16/2021 by Financial Samurai 33 Comments

It’s safe to say that before you began reading this post, you had no idea you were blinking. Blink, blink, blink. Whatcha going to do about it now that you are aware of your fluttering eyelids? My guess is that your memory will last as long as a gnat, and you’ll forget as soon as you finish reading this post.

It’s amazing how we can blink roughly 36,000 times a day and not even be aware. Yet, if we were to be consciously aware of our need to blink, we’d probably drive ourselves mad. How great it is that our bodies protect ourselves from insanity by doing the things for us we have no desire of doing ourselves.

Blink – SUDDENLY YOU’LL WAKE UP

Our little habits create ourselves and we don’t even know it until we wake up one day and say “Holy shitake!” I did that once with my 401K after contributing the max every year for 10 years. Every month, roughly $1,300 was deducted from my paycheck for 120 months until it accumulated into a nice sum of money without even realizing it.

I have no idea what my returns are, since there was also 401K matching and profit sharing as well. For all I know, my 10 year real rate of return was zero since the stock market performed so badly. The funny thing is, I don’t really care because it’s all fake money anyway since I can’t tough it until 59.5 years old.

The sum after 10 years is also much larger than $1,300 X 120 months because of all the matching and profit sharing so it’s hard to figure out. But, by doing something I’m supposed to be doing without even being aware, there it is, a nice sum of money that * might * be around when I retire.

The same thing goes for savings. If you regularly flush money out of your “go broke bank” and into your savings bank long enough, you’re also going to wake up one day and be astonished at what you’ve accumulated. You don’t have to manually transfer money each time your paycheck hits because everything is done automatically, just like blinking.

If you get a nice lovely bonus end of year, you may have to click some transfer buttons, but it’s all part of the unconscious routine to wealth accumulation.

Blink – SO EASY ANYBODY CAN DO IT

Blinking comes naturally to most people. Most everyone does it without thinking. Savings is the exact same way. Only someone with a genetic defect can’t or won’t save money consistently without giving it a second thought.

China’s gross domestic saving rate is roughly 45% of GDP and the Japanese save 30-40% of their income every year. So what in Hamburger Nation is wrong with the 330 million Americans with a sub 5% savings rate?

The answer is that the often quoted low savings rate in America is bogus because the way we calculate savings is outdated.

I firmly do not believe that you and I are that weak to only save less than 5% of our income. Just ask yourself how much you are saving, and the answer is clearly more than 5%!

Develop Good Habits

The best habits in the world are those you do without thinking. When you’re in an elevator, you let the ladies go out first and then ask for their phone numbers. When you’re subsequently on the date, you say nice things and pick up the check.

When you meet a friend, you’re always 10 minutes early instead of 10 minutes late. When you’re part of a personal finance blog network, you work on building healthy relationships.

When you have the privilege of getting a higher education, you take advantage and get good grades. So many good things are done unconsciously. Now all you have to do is remember to breathe.

Check out my top financial products page to help you reach financial independence sooner.

Regards,

Sam