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Financial Samurai

Slicing Through Money's Mysteries

My First Car Was A Heap Of Junk How About Yours?

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Joining Uber As A Driver With $50 Gas Promo
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My first car was pretty crappy. How about yours?

After getting my driver’s license at 17, I talked to my parents about finally getting a car.  I don’t remember why I didn’t get my license at 16, but perhaps it was because I had such a spiffy bicycle the ladies loved.  *Ring a ding a ling * was the sound of my bell every time I rode by a hot girl.

It always felt odd that I had to walk or ride my bike to school when other kids got to drive their new Ford Explorer SUVs, and VW Jettas.  Even my parents drove an 8 year old car at the time.  Oh well, I thought to myself.  Perhaps one day.

THE HIDDEN GEM THAT WAS NOT A GEM

The day I got my driver’s license was one of the most memorable days.  One, because I failed the written test the first time, and my mom wasn’t too happy.  Two, because my parents took me to “Fresh Choice”, an all you can eat buffet restaurant to celebrate.  I had dreams of rumbling in a 5.0 liter Mustang for my first car.  Nothing sounds so beautiful.  In fact, I actually test drove one of my classmates because he was selling it to buy an Acura NSX!  “$9,000 and it’s yours Sam!”  Yeah right.  All I have is like $900 bucks, but I sure am glad I got to test drive!

My parents gave me a $2,000 budget, so I searched the Auto For Sale section of the papers gleefully to find my dream vehicle. Damn, even in those days $2,000 wasn’t too much money.  There was no internet at the time mind you so all I could do was base my impression on some text in a paper.  I finally stumbled upon one ad that just sung to me, “Excellent condition 1987 Nissan Sentra with only 135,000!  Seller is running for District Supervisor. Only $1,699!”  $1,699 was $500 cheaper than all the other comparables and I thought I had a deal.

We drove out to the aspiring District Supervisor’s shoddy apartment and took a look.  What a junker!  The car had a faded yellowish color, with a newly painted driver’s door, because obviously someone bashed into it.  Even still, we took it for a ride, and I just loved it.  We paid cash on the spot and drove it home.

With all the scrubbers and cleaning chemicals I bought from the auto store, I got to work detailing every single inch of my new baby.  I even got one of those scented pine cone car fresheners to hang from my rear view mirror.  It was a dream come true.  My very first car to drive to school in!

FIZZLE POP

Too bad only a month had past when * boom * my clutch broke down and my car no longer could shift gears and move.  No wonder it was $500 cheaper than all the other cars in the paper.

I had to replace all of the CV boots as well.  $1,100 later, the car was as good as new.  Curses to you District Supervisor!  Now I remember why I don’t trust politicians.  It all started at age 17.  I’m glad I started with a piece of crap, because nothing could have been worse!

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

RECOMMENDATION

Lower Your Auto Insurance Costs: Check out AllState online. They have some of the best plans with the lowest rates around due to their lower overhead costs. It’s worth spending a moment filling out a quote to see if you can save some money. Car insurance is one of the largest ongoing expenses for car owners. Allstate has good driver discounts, and multi-product discounts as well.

Updated for 2021 and beyond

The Best Football Conference Also Educates Better

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The best football conference is the Pac 12 in 2021-2022 baby! Go Bears! But actually, the best football conference is probably the Big Ten based on all the stats back when I first wrote this post in 2010.

1. Big Ten

F/+ Top 25 teams: 5 (35.7 percent)
Sagarin divisional ranks: No. 3 (East division), No. 6 (West division)
Average strength of schedule rank: 23.3
New Year’s Six teams: 3
Playoff teams: 1

The Big Ten had 10 bowl-eligible teams out of 14, but what separated it from other Power Five conferences was how good it was at the top. Four of the five teams ranked in the F/+ Top 25 were ranked in the top 12. Additionally, each division was rated highly. Entering the final week of the season, Michigan, Penn State, Ohio State and Wisconsin were all in the playoff hunt. Each of those teams either made a New Year’s Six or College Football Playoff game. The bottom of the Big Ten was bad, but overall this was the strongest league from a strength-of-schedule perspective.

2. Pac-12

F/+ Top 25 teams: 3 (25 percent)
Sagarin divisional ranks: No. 2 (North division), No. 4 (South division)
Average strength of schedule rank: 32.3
New Year’s Six teams: 1
Playoff teams: 1

The Big Ten may have had the highest number of top-end teams, but the gap between the best team and the worst team in the Pac-12 was smaller. (In fact, the conference’s best team, Washington, needed overtime to beat its worst team, Arizona.) The Pac-12 also had an even split between its top six teams and its bottom six. Overall, this was a strong, and deep, conference.

3. ACC

F/+ Top 25 teams: 7 (50 percent)
Sagarin divisional ranks: No. 5 (Coastal division), No. 7 (Atlantic division)
Average strength of schedule rank: 41.3
New Year’s Six teams: 1
Playoff teams: 1

The most impressive thing about the ACC was the number of top-25 teams in the F/+ rankings. Seven was the highest number of any conference. However, the ACC’s overall strength of schedule was lower, as were the divisional rankings. This was a league with one elite team (Clemson) and several good to very good teams.

4. SEC

F/+ Top 25 teams: 4 (28.6 percent)
Sagarin divisional ranks: No. 1 (West division), No. 10 (East division)
Average strength of schedule rank: 28.9
New Year’s Six teams: 1
Playoff teams: 1

It’s shocking to see the SEC, long considered the best conference in college football, plunge to No. 4, but there’s a simple reason for it. Alabama was unquestionably the best team in college football, but the rest of the conference simply didn’t match up. The SEC East was particularly bad and ranked the 10th-best division, lowest among any Power Five division. The West division was strong and the schedules were tough, but the conference was really dragged down by that East division.

5. Big 12

F/+ Top 25 teams: 1 (10 percent)
Sagarin divisional ranks: No. 8 (conference)
Average strength of schedule rank: 69.6
New Year’s Six teams: 1
Playoff teams: 0

The Big 12 was the weakest Power Five conference. It had one top-tier team (Oklahoma), two decent teams (Oklahoma State and West Virginia) and a handful of average to below average teams. Having only 10 members hurts the Big 12’s chances to have multiple elite teams, but there have been recent years in which the conference was able to flex its depth. This was not one of them.

6. AAC

F/+ Top 25 teams: 2 (16.7 percent)
Sagarin divisional ranks: No. 9 (West division), No. 12 (East division)
Average strength of schedule rank: 75.4
New Year’s Six teams: 0
Playoff teams: 0

There wasn’t much separation between the Big 12 and the AAC. The top of the American, in fact, was a bit stronger. However, the strength of schedule was lower — albeit only slightly — and power programs like Houston and Navy weren’t able to crack the New Year’s Six spot. Otherwise, these spots probably would have been flipped.

7. Mountain West

F/+ Top 25 teams: 1 (8.3 percent)
Sagarin divisional ranks: No. 11 (Mountain division), No. 18 (West division)
Average strength of schedule rank: 93.6
New Year’s Six teams: 0
Playoff teams: 0

This is where the statistical drop-off happens. The Mountain West didn’t have a New Year’s Six and its most well-known program, Boise State, didn’t even win its division. However, half of the conference did have winning records — five in the Mountain division alone — and two 10-win teams. The overall depth was the tiebreaker here over the MAC.

8. MAC

F/+ Top 25 teams: 1 (8.3 percent)
Sagarin divisional ranks: No. 14 (West division), No. 20 (East division)
Average strength of schedule rank: 86.6
New Year’s Six teams: 1
Playoff teams: 0

There wasn’t much to distinguish between the MAC and the Mountain West. Both conferences had a bell cow team, but neither had particularly strong divisions — both, in fact, had an especially weak one — or strength of schedule ratings. The MAC did have undefeated Western Michigan, but the rest of the conference was weak.

9. Conference USA

F/+ Top 25 teams: 1 (7.7 percent)
Sagarin divisional ranks: No. 17 (East division), No. 19 (West division)
Average strength of schedule rank: 107.2
New Year’s Six teams: 0
Playoff teams: 0

Similar to the MAC and Mountain West, Conference USA had a top-25 caliber team in Western Kentucky. The Hilltoppers actually played a fairly tough schedule, too, and still won 10 games. Outside of that, there isn’t much. The likes of Middle Tennessee, Old Dominion and Louisiana Tech gave the conference some good teams at the top, but the gap between them and the rest of the group was sizable.

10. Sun Belt

F/+ Top 25 teams: 0 (0 percent)
Sagarin divisional ranks: 16 (conference)
Average strength of schedule rank: 94
New Year’s Six teams: 0
Playoff teams: 0

Someone has to bring up the rear. The Sun Belt had some good teams (Appalachian State, Troy) and some terrible ones (New Mexico State, Texas State) with some bad strength of schedules to boot. The lack of a Western Kentucky-caliber team hurt the Sun Belt here.

A 6-6 Washington team beat Nebraska 19-7 in the Holiday Bowl.  Stanford demolishes ACC Champion Virginia Tech 40-12 in the 2011 Orange Bowl and now we have Oregon playing Auburn in the BCS National Championship game.  Clearly, the PAC 10 is the most dominant athletic/football conference in the country.  In 2010, Stanford also pounded Notre Dame 37 to 14 and UCLA crushed Texas 34 to 12.  Statistics don’t lie, no matter how biased you are living in middle America or on the East Coast.

If you compare academic match ups, the Pac 10 wins as well.  Not only are Stanford, UCLA, Washington, and Oregon academically superior to Notre Dame, Virginia Tech,  Texas, and Auburn based on polls by every single college ranking system available, they also have superior athletic programs to boot.  Furthermore, the campuses of Stanford, UCLA and Oregon are like country clubs, with phenomenal facilities and fantastic weather all year around.

Notre Dame, Texas, Auburn and Virginia Tech are fine schools in their own right.  However, if you compare the four against their Pac 10 match ups, there simply is no comparison.  Hence, why is it that athletic recruits would ever go to a school other than one in the PAC 10 if they had a choice?  Let’s find out.



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The Average American Net Worth Is Huge!

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average-net-worth-2014According to The Wall Street Journal, the average net worth per person in America was $182,000 back in 2010. Then came a 2014 Credit Suisse survey highlighting the average net worth in America is a whopping $301,000 (see pic)! Now in 2017, the average net worth for Americans is even higher thanks to a bull market in stocks and real estate.

Originally, I had my doubts about the $182,000 figure, since the median 2007 net worth of all US households is $109,000 based on a Federal Reserve survey. However, could it be that everybody in America can all buy new Porsche 911 Turbos with plenty of money left over if they wanted to? After some thought, I shared the story over social media to see what the community would say, and the negative responses astounded me!

NOBODY BELIEVES IN REALITY

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The Secret To Early Retirement Is So Simple And Logical

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As an early retiree since 2012, let me share with you the secret to early retirement. I originally wrote this post in 2010 when I was desperately seeking to leave my arduous finance job. I had been working in banking for 11 years and was completely burned out.

Now that I have more than a decade of early retirement wisdom, let me share some interesting thoughts about retiring at age 34. Instead of going the more honorable and grueling route, I should have been more strategic.



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Small Business Owners Encouraged To Fire Employees Before Tax Hikes

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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 Ultimate Solution For A Fair Income Tax Policy In America

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Do you want a fair income tax policy in America? So do I! I wrote this post on July 28, 2010 when I was working crazy hours. My hope was to make big bucks and be free sooner, than later. The potential to pay more taxes was disheartening.

Let’s review what was going on back then. Let’s also discuss how we should proceed w/ President Biden planning to raise taxes on households making over $400,000 a year. Man, I was really frustrated back then. But not any longer!

The Ultimate Solution For A Fair Income Tax Policy

With the Bush tax cuts set to expire next year, there’s going to be a big debate during the mid-term elections this November!  But, should there really even be a tax debate?  It’s obvious that we should NOT raise taxes on small business owners and higher income, hard working Americans in a nascent economic recovery!

Everybody knows roughly 47% of Americans pay no federal income taxes. Hence, the ultimate solution for tax legislation is to strip away tax voting rights for the 47% of Americans who pay no tax! Seems fair no? They still get to enjoy the benefits of other people’s contributions. 

If you’re one of the 100+ million Americans who pay no income tax, isn’t it good enough to enjoy free public schooling, nice roads, friendly firemen and police officers protecting your neighborhood?  Being thankful is a great disposition to have.  Being greedy is not.

An Example Of A Family Making $120,000 Paying No Taxes:

“Say you’re married with salary income of $120,000, 401(k) contributions of $12,000, two under-age-17 kids, and a college student with $4,000 in education expenses. Assume you also bought a home this year that qualifies for the now-defunct $6,500 credit for existing homeowners. Finally, assume you’re eligible for the $1,500 credit for energy-efficient home improvements. Believe it or not, your 2010 federal income tax bill will be zero even if you only claim the standard deduction.

Your tax bill of $11,950 is completely wiped out by $13,300 in credits ($2,000 child credit, $2,500 education credit, $6,500 home buyer credit, $1,500 credit for energy-efficient improvements, and the $800 Making Work Pay credit).

In fact, you’ll get a $1,350 check from the government. Some of your credits are refundable ($13,300 of credits – $11,950 of tax = $1,350 of free money),” writes Bill Bischoff of SmartMoney.

2017 Marginal Federal Income Tax Rates
Assuming Trump doesn’t lower them. This existing tier doesn’t reward work ethic. It punishes!

VOTING TO RAISE TAXES ON OTHERS WHEN YOU PAY NO TAXES IS LIKE……..

If you vote to raise other people’s taxes, please pay more yourself. Otherwise, it’s like:

* Dr. Phil writing a book and telling someone to lose weight.

* Suzie Orman telling you to invest in the stock market when only 2% of her wealth is invested in equities.

* A recent college graduate teaching you how to be rich.

* A hardcore vegetarian who wears leather shoes.

* A priest who preaches acceptance but expects you to burn in hell when Armageddon comes if you don’t convert.

* The United States implementing economic sanctions against emerging countries for polluting.

* A boss who tells you to work hard but goes and plays golf every other day and takes long lunches.

* US Treasury Secretary Geithner saying raising taxes is “the right thing to do” but cheats on his own taxes.

A Fair Income Tax Policy Is All We Ever Want

Some may argue that voting is a fundamental right as decreed by the 15th amendment of the Constitution.  I agree, go ahead and vote on whether the government should implement a flat tax on those who pay nothing. It’s only fair.  Just don’t go around pretending as a non tax payer, you have the right to vote on persecuting others to pay for your own free government benefits.

It’s so obvious to any rational person that if you pay no taxes, you can’t possibly be able to vote for people whose agenda it is to raise taxes on others.  Yet, millions of non tax paying Americans continue to support tax increases for the rich, who may very well be the ones who help keep the millions who don’t pay taxes employed!

Friendly Americans who pay no taxes, please have a heart and enjoy your spoils and stop punishing others further.  For the 53% of Americans who do pay taxes, let us decide what is the right level of income taxation to help support the economy and you guys.  We might vote to raise our own taxes and dis-incentivize ourselves to work hard.  So be it.  At least we get to vote on our own destiny!  Thanks!

Track Your Net Worth For Free

The other action item wealthy people do is track their net worth. You can only truly optimize your wealth if you know where all your money is going! Sign up for Personal Capital, the web’s #1 free wealth management tool to get a better handle on your finances. I’ve been using them since 2012 and have made much wiser financial decisions since. In addition to better money oversight, run your investments through their award-winning Investment Checkup tool to see exactly how much you are paying in fees. I was paying $1,700 a year in fees I had no idea I was paying.

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. Input various expense and income variables to see how you stand. Your goal should be to get to a 90% probability of achieving your goal. Try it out yourself for free. Your future is too important not to take it seriously. You don’t want to end up old and not have enough money because there is no rewind button!

Retirement Planner Personal Capital
Is your retirement on track? Check for free after linking your accounts

Tax Savings Recommendation

Start A Business. We might never get a fair income tax policy. As a result, starting a business is one of the best ways to shield your income from more taxes. You can either incorporate as an LLC, S-Corp, or simply be a Sole Proprietor (no incorporating necessary, just be a consultant and file a schedule C).

Every business person can start a Self-Employed 401k where you can contribute up to $54,000 ($18,000 from you and ~20% of operating profits). All your business-related expenses are tax deductible as well. Simply launch your own website like this one in under 30 minutes to legitimize your business. Here’s my step-by-step guide to starting your own website.

Start a simple business to pay less taxes and contribute more to pre-tax retirement accounts
Start a simple business to pay less taxes and contribute more to pre-tax retirement accounts. Instead of paying taxes on $100,000 in income, you’re only paying taxes on $12,000 for maybe a $2,000 tax bill, or 2% effective tax rate.

Related: How To Pay Little Or No Income Taxes For The Rest Of Your Life

Three Keys To Motivation And It Has Little To Do With Money

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When life is so good in America, it’s easy to slack off. Here are three keys to motivation. None of them have much to do about money.

Here’s a short 10 minute video I stumbled upon which eerily highlights several things I do and why (ie play guitar). The video also touches upon reasons why some people are willing to do things for free. While others strongly consider giving up big salaries to just work on a hobby.

When I first wrote this post in 2010, I was already beginning to try a find away out of finance. This video helped me think of ways to get out. Ultimately, I negotiated a severance after 11 years and left in 2012.

Three Keys To Motivation

I find myself agreeing with pretty much everything the video has to say.  Money has become a secondary motivational factor for me over the past several years. 

Three Keys To Motivation

  1. Autonomy
  2. Mastery
  3. Purpose

Something just happened where I’ve become satisfied in making what I make, oh my! Sure, I have a “make $1 million bucks” goal for 2010, but that’s really just one of those fun, see if I can do it goals.  Autonomy, mastery, and purpose are things I look forward to now.

Progress is a wonderful feeling, which is why I try and play a musical instrument and sing in my free time.  Music also helps fill the void when I’m injured due to sports. 

Going from not knowing the chords and the words of a song, to mastering a tune from memory that’s good enough to record is an unbelievable sense of accomplishment. 

I’ve been working on getting the finger picking of Pearl Jam’s “Just Breathe” for the past month, and I can’t seem to get it right.  But dammit, I’m going to keep practicing because it’s such a beautiful song!

After you have a certain amount of money and experience, you definitely want autonomy.  You’re no longer a fresh college grad that is constantly micro-managed by senior colleagues. 

A sure fire way for a company to lose a star employee is to restrict their freedom and ignore their good work. 

Blogging Has Given Me All Three

Blogging is an incredible example of autonomy. Nobody is going to tell me what to write and that’s so liberating. I’ll thrive and fade with my decisions alone.

Purpose is something that can either be questioned before you start your journey or after. Having purpose is one of the most important keys to motivation. Purpose is why I’m still blogging 3X a week since 2009!

You can be a high school or college student who has no freaking idea what you’re supposed to do in life. 

Or, you can be a 20 year veteran in the workforce who has built a great resume, as well as financial security, but realize you’re middle aged now and wonder if there’s more to life since you’ve already conquered insecurity, be it financial or otherwise.

The purpose of this site was never to make money, even though it now makes a good amount. The purpose was to just create something tangible that serves as a creative outlet for someone who was once creative.  I want to be that kid in pottery class again, molding that wet clay on a rapidly rotating swivel stick.

Finally, after writing 2,000+ articles since 2009, I have mastery. It feels great to be in the top 1% in something.

Readers, what are several motivating factors for you in your life or in your job? Have you noticed money increase or decrease in importance as a motivational factor? Share with us your keys to motivation.

Related:

Three White Tenants, One Asian Landlord

Perpetual Failure Is Why I Continue To Save

Regards,

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

Subscribe to my E-mail feed. Check out the Top Financial Products page to help you achieve financial freedom sooner.

The White Cloud of Happiness

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My mother is a white cloud of happiness. Every time I see her, she smiles even bigger than I can ever smile. She loves to talk stories about any of life’s teachings she’s discovered, and I generally just keep quiet and listen. 

Sometimes I don’t understand everything she says, but that’s OK.  It makes me happy just knowing she’s happy imparting wisdom onto me.

A White Cloud Of Happiness

One of the holiday presents I got my father was a signed copy of Andre Agassi’s autobiography, “OPEN.”  To me, the book was gold, because Andre is my idol. It was my only copy. And I decided to give it to my father because I remember him loving to read and enjoying the game long ago.

When my father opened his present, he did thank me and showed his appreciation. However, a week later, the book still lay on the coffee table unread. Somewhat dismayed that Agassi was being ignored, I spoke to mom about perhaps taking the book back since I cherished it so much. She mentioned her unused Barnes & Nobles gift card and had an idea.

Later that evening, my parents went to the Mall for date night without us. Apparently, Carl’s Junior had a two-for-one special and my father was just dying to go! 

When they returned, my mother brought me over to the kitchen and told me, “Shhhhhh, take a look at the book. I bought another copy of “OPEN” and swapped it with your signed copy, so you can take it home! Dad will never know!”

We laughed so hard it hurt and gave each other high fives! My mom was right, dad never found out. Mom, who knows very little about tennis, was encouraged by my enthusiasm. So she even read “OPEN” before dad! What a white cloud of happiness and positivity she is.

Lesson Learned

What you think is an amazing gift, may be quite uninteresting to the recipient. There is a recent study saying that on average, the recipient derives only 80% of the value of a gift. This is largely the gift giver’s fault for not getting them exactly what they want and need. My father was probably thinking he could just get the book at the library.

We can choose to be a black cloud, or a white cloud of happiness in every situation we face. The way we carry ourselves makes all the difference. 

When an ambulance screams by, white clouds part so the sun can beam through. Thanks mom for being a white cloud of happiness and supporting me in so many ways. Thanks dad for teaching me tennis. Now go read the book already!

Happy Mother’s Day Weekend Mom!

Further Reading

Readers, what are you doing for Mother’s Day?  What is the one thing your mother taught you that you will always appreciate?  Can you choose to be a white cloud, or is it just all predetermined?  For those whose mothers are no longer here, may they be blessed forever.

Keigu,

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

Crap! Taxes Are Due Soon!

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When I was thinking about what to write in this week’s Katana, I suddenly shouted out, “Crap! Taxes are due soon!” This is the first year where I actually owe money to the government and I’m not too pleased. For all intents and purposes, I should be happy that I got a free multi-thousand loan for the year. But, it just feels off.  A typical personal finance blogger will argue that it’s stupid to celebrate a tax refund. But, I’m telling you to go right ahead. Tax refunds are good for most people because most people can’t save for cookies!

Taxes Are Due Soon!

Even though taxes are due soon, I’m waiting until the absolute last moment to file. Why? Because I constantly find errors in the way I’m doing my returns. There’s no doubt in my mind that every single tax return submitted by an individual has at least one error, or sub-optimal input. I generally go over my taxes at least three times before submitting them. It’s in my nature to double and triple check everything when it comes to money.

Doing your own taxes forces you to learn a tremendous amount about your finances. It heightens your awareness, leading to better financial decisions. You learn about things such as deduction limit phases outs, rental property amortization, and alternative minimum taxes all too well.

Once you understand how much income leakage there is, you’ll join the side which wishes for a fair flat tax and a smaller, more efficient government. Too many people just blindly follow what their accountant tells them to do without fully understanding where their money is going. That’s irresponsible.  

#1 Tax Tip

My #1 tax tip for everyone is to do your own taxes at least once. Even if you make mistakes, which you will, you’ll be a better person because if it!

Readers, how many of you do your own taxes? Are you freaking out that taxes are due soon? With tax software making things relatively simple nowadays, why not try it out on your own if you don’t now? Taxes are typically due April 15th each year, give or take a couple days if it falls on a weekend.

HIGHLIGHT POSTS FROM AROUND THE SPHERE

“Beware Of The Four Horsemen Of Personal Finance” by Len Penzo, who finally joins the crew.  One of the wittiest PF writers around.

“How I Paid Off Over $70,000 In Debt And Quit My Job” by Eventual Millionaire highlights her journey in becoming debt free and reaching financial freedom.  Love reading triumphant stories!

Further Reading

After “Doing Anything You Can To Survive“, I’d like to touch upon topics of discrimination and why it exists. Are we a product of our upbringing and how we were raised? Do old habits die hard? Hope you all can join in on the discussion as these topics pertain to all of us. Here are some additional posts for further reading.

And one last reminder: don’t forget – taxes are due soon!

Keigu,

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

Follow on Twitter @FinancialSamura

“Capitalism: A Love Story” DVD Review

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Michael Moore thinks he is pointing out injustices through his latest documentary, “Capitalism: A Love Story“.  Instead, Michael simply reminds us that life isn’t fair in a free market economy where those who work hard sometimes get the short end of the stick through no fault of their own.

Review Of Documentary “Capitalism: A Love Story”

I find it ironic that one of the wealthiest documentary filmmakers is bashing Capitalism. Despite highlighting that 33% of “young Americans” now believe in Socialism (37% for Capitalism, 30% undecided), it’s hard to argue for a better system. 

It’ll be interesting to see if these young Americans still believe in Socialism by the time they reach their thirties and make some money. Socialism just creates a new set of problems for society. 

Is it really that bad buying a foreclosed property from someone who can’t pay their debt on time?  Property vultures are necessary to provide a floor in many devastated markets or else things go to zero and more people suffer.

There is a sense of self-righteousness when Michael tells the viewer that he can’t fight the system alone and encourages all to rise up. Michael you aren’t alone. Thousands upon thousands of us fight for what we believe in every single day. 

I wish Michael would put his money where his mouth is and donate all his proceeds to helping victims he continues to highlight.

A STRANGE PLACE

Have you ever seen a journalist report from some God-forsaken place where malnourished children are starving in the background? Do you ever think to yourself, instead of jibber jabbering away, why don’t you just shut up and provide some food for the starving children behind you? 

The documentary is kind of like that. Michael mocks ministers, judges, companies, government, and Wall St. He does so to the point where I start thinking, why not just do something other than make a documentary?

There are some important parts to the documentary which made me want to stand up and cheer. Most notably was the 6 day factory worker lock-out which got Bank of America to finally pay them $6,000 in unemployment benefits from zero. 

That made me proud, because people were standing up against a company who just threw them away like garbage. Digging deeper though, why is Bank of America responsible for their benefits just because they got some bailout money? Shouldn’t the company itself be responsible?

TIME FLIES

The problem lies in the timing of this documentary. Nobody could have foreseen that in just one year since Lehman’s bankruptcy, the economy would rebound so quickly. The fear mongering has subsided and a sense of normalcy has returned.

He praises Obama for his promises, which one year later have not all been kept. Making a shady deal with the Senator of Nebraska to get him to vote for the health care bill by exempting Nebraskans for paying is not right.  As a result, after 30 years of Democratic rule in Massachusetts, a Republican takes former Edward Kennedy’s place.

Michael trashes Wall St. for receiving $700 billion in bailout money, making it seem like everybody in the industry had a part in forcing people to buy homes they couldn’t afford. One year later, a majority of the $700 billion has been repaid with handsome returns boasted by the government. 

Are the taxpayers thanking Wall St. for their profits? No, because frankly, as taxpayers, we pay the same amount of taxes regardless of where our money goes!

CONCLUSION

I commend Michael for making another hit documentary about this latest downturn. The snark is entertaining and therefore worth the watch. He makes the viewer think about issues, but he does not convince me that Capitalism is indeed ‘evil” as all his interviewed priests proclaim. 

If Capitalism is truly evil, why is The Church one of the richest institutions in the world? If Capitalism is evil, is Bill Gates also evil for donating billions to fight disease and poverty? No, Capitalism isn’t evil and Michael Moore will profit handsomely once again.

Further Reading

Related: The Secret To Your Success: 10 Years Of Unwavering Commitment

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Regards,

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