Dear Financial Samurais,
With the S&P 500 down for four consecutive weeks and the potential for reciprocal tariffs on April 2, the market feels like it's in a holding pattern. Rather than stressing over what we can't control, it's a good time to focus on things that are working and what we can actively influence.
This past week, I had two realizations that shifted my perspective:
- Owning a car for 10 years might not be long enough.
- Not everyone values living away from the hustle and bustle as much as I thought.
Let me explain.
Appreciation Is a Matter of Perspective
I originally planned to buy a new car around mid-2025, marking the 10th anniversary of my Range Rover Sport. I bought the car in December 2016, just before my son was born, as a safer upgrade from my trusty 2017 Honda Fit, which I loved for being able to park in 25% more spots in San Francisco.
However, after driving my dad's 28-year-old car for eight days in Honolulu this past winter, I realized my nearly 10-year-old car still feels new! With car prices remaining high, I'm not eager to shell out for a replacement. If we face another recession, I expect both new and used car prices to drop over the next two-to-three years.
For now, I'm happy to let my car depreciate gracefully, leveraging my House-To-Car Ratio to stay financially independent. My dad's ratio is probably around 1,000, and I'd like to far surpass that ratio for fun.
Read more: Driving a 28-Year-Old Beater Made Me Appreciate My Old Car Again
The Return of ‘Live to Work'
The pandemic's era of flexible work is clearly over. I see people paying massive premiums for homes closer to work or near public transit hubs, which seems counterintuitive. Paying a premium for a home that's closer to work means needing to work longer and harder to afford the higher price!
Given that roughly 70% of workers are disengaged from their jobs (per Gallup), this approach feels misguided. I'd much rather own an equally nice house a little farther away to save money and time working. Yet, these homebuyers must believe the potential career gains and perceived status are worth the cost.
I can't help but think many haven't fully calculated how much longer they'll need to work to pay for a home they don't truly need. Time becomes more valuable as we age because we have less of it.
Read more: Live to Work Is Back and It Could Cost You a Fortune
One Thing I Haven't Changed My Mind On
A few weeks ago, I wrote about the peace of mind that comes with owning a paid-off home, especially during uncertain and chaotic times. That sentiment hasn't changed—I still believe that having no mortgage is better than having a low-interest rate mortgage.
That said, I do understand the power of leveraging a low-interest rate mortgage to build wealth and enjoy a better quality of life today. It's a strategy that can work incredibly well for many, but there's something uniquely satisfying about eliminating debt entirely.
With that in mind, I decided to write a follow-up post titled, The Only Good Reasons To Pay Off A Low Interest Rate Mortgage. It's a timely topic for me because this year, I plan to pay off a mortgage with the proceeds from selling a rental property.
Millionaire Milestones Bookplates Are Here!
For everyone who pre-orders Millionaire Milestones: Simple Steps to Seven Figures, I’d like to send you a signed bookplate as a token of appreciation. These will arrive before the book's release on May 6 and can be placed on an inner blank page. You can order a copy on Amazon or wherever you buy books.
I have a limited run of 500, so it's first come, first served! I'll be enlisting my wife and kids to help fill out envelopes, bringing back memories of my days as a temp worker stuffing envelopes for $4/hour. If you’re looking for simple tasks for your young kids, envelope-stuffing is a classic.
Also, if you purchase 5 or more hard copies, I'll send you an exclusive first-edition first-print, free, signed hard copy to your name with a note. Or I can send you a complimentary electronic copy of How to Engineer Your Layoff: Make a Small Fortune By Saying Goodbye. Giving the gift of financial education is a powerful way to empower others.
Please fill out the form here if you want your free bookplate, custom signed hard copy of MM, or an electronic copy of How To Engineer Your Layoff. If uploading your receipt doesn't work, you can e-mail it to sales@financialsamurai.com.
Thank you for your support — my family and I have some mailing to do!
To Your Financial Freedom,
Sam
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