“Buy This, Not That” With Sam Dogen, the Financial Samurai

What’s up simple passive cashflow listeners. Today, we have Sam Dogen from the Financial Samurai. He’s got a book coming out and we wanted to discuss that and his story and what I really wanted to tease out. A lot of you guys have financial freedom, but there’s not really anybody you guys have to interact with who tells you what’s on the other side, after you’ve gone zero gravity or hit that escape velocity and your passive income is greater than your expenses.

But Sam, I didn’t realize we’d be talking ever, cuz we’ve been reading your financial blog since the beginning of my financial blog journey. Just to give people some insight. I graduated high school in 2003, and then somewhere in like freshman, sophomore year, when I didn’t have any money, I started to read all these financial blogs and yours was one of those that would keep coming up.

It perplexes me that I would read such stuff when I was broke, and didn’t have any money. And that’s what I tell a lot of, the listeners are a lot of the kids. If they don’t have money, most kids don’t care. Less weird ones like me but yeah, it’s nice to finally meet you financial samurai.

And for those of you guys, he still does his blog, which you guys can go and visit financial samurai.com. And I gave you a lot of credit Sam, like most of the guys who were doing it, when you did and got traction, they sold out, right? Like Mr. Money Mustache. I can’t even remember all of them, but they all sold out to larger companies.

And now it’s all you. Quite labeled and put out like that. But yours is still raw and it provides good insight for folks. Let’s get into the interview here. Maybe Sam, maybe just go over your quick background. Cause I think it’s very similar to a lot of the listeners today.

Thanks for having me. I started financial samurai in July, 2009, right at the bottom of the financial crisis. And it was just a way to make sense of all the destruction and the chaos because I have been working in finance since 1999. And, I’ve been saving and investing aggressively cuz I wanted to get out.

I didn’t really enjoy the work after the 10th year. And so when I started losing all my money, I mean I lost 35% of my net worth in six months that took 10 years to build. I am really pretty much afraid for my future. And so that’s when financial samurai was born, and by 2012 it was making, livable income stream.

But I was able to negotiate a severance that paid for many years of living expenses. So I decided, what, if I can get the severance I’m outta here, even though I’m only 34 years old, I just didn’t want to do the same thing over and over again. Life just felt too short. So I escaped. Yeah. So any type of instance when you were working that kind of was like, no, you know what, I’m gonna write this blog or did it all just slowly over time happen for you?

So I started going to Berkeley for business school part-time in 2003. Also because I thought I might get laid off the.com bubble was crashing in 2000, 2001, 2002. It was just, it was bad times. And I thought I had just left Goldman Sachs for two years from 1999 to 2001. And then I joined Credit Suisse in San Francisco.

And so there’s this last in first out type of thought process when you’re letting people go. And I was one of the last people in. So anyway, I started going to business school. Part-time just in case I got let go so that I could go to school. Full-time if I were to let go. And then I decided, oh, maybe I should start a personal finance site because I’m reading a lot of personal finance sites as well.

But nobody has a finance background writing about personal finance. So I said, oh, maybe I should start. So when I graduated in 2006, I was gonna start being a financial samurai. But I ended up not doing so because I was just too busy. And I said it’s time to work. And it’s time to give back to the company that paid for my tuition.

But finally, when I lost so much money in 2009, I had no more excuses not to start. So I said, you know what, let’s do it. Let’s see what happens. I paid some guy $500 on Craigslist to start the site, to do some design and just to get started. And I think that’s the hardest part for a lot of people trying new things to get started because once you start, you’ll learn and you’ll build that momentum.

Yeah, but there’s not many people that can get traction, like how you did, and it does take a little bit of luck, but in a way, it got you that gap to be able to make a little bit more money and kind of accelerate yourself down the financial path. So maybe talk a little bit about how that passive income got built up.

And then when did you finally cut the cord on the day job, the w. Yeah. So I worked in equities and that means my compensation and my career were tied to the stock market. And so the stock market does well. I do well. The stock market does poorly. I don’t do well. And so my instant thought after the first month of working was, oh man, getting in at 5:30 AM and leaving after 7:00 PM is unsustainable.

I didn’t want to last that long in my career. I knew I couldn’t last that long. And so from then on, I decided to save 50% of my income and reinvested. So I started reinvesting in dividend stocks, CDs, bonds, just whatever. But then what I did was, I was able to get lucky on a dot bomb stock that went from $3,000 to $150,000.

And so I sold out and I said, you know what? I should probably diversify my wealth into real estate. because I saw so many stocks go up huge and then just crash during the 2000- 2001 bubble. So I felt it was just like funny money. So I had better used my luck and I totally believe most of anything is luck.

Anything outside the average is luck. So I was able to convert that funny money stock gains into my first property in 2003, because I knew no matter what, I wouldn’t wake up one day and see my value of my rental property or my property go down 40%. It was a sticky investment, sticky rental income.

And so I started building my real estate portfolio in 2003, saved as much as I could and tried to diversify as much of my funny money or equity income into real assets. Going back to, like when you graduated college to year 10, we have a lot of these guys that will save they’ll max out their 401k.

I don’t know if it’s 25 grand these days, but were you one of these kids or putting away like 50, 70 grand a year from your paycheck to savings? Yeah, that was the easiest step. Back in, I think it was 1999- 2000. I maxed out my 401k at the time was 10,500, but after a while I realized, you can’t take from your 401k until you’re 59 and a half.

And I couldn’t last beyond age 40 in finance. I just knew I couldn’t. So I needed to figure out a way to generate passive income from my taxable portfolios. My taxable online brokerage count or real estate, which was my bread and butter. So that’s what I focused on doing and in San Francisco, you can live as a single person off 50,000 a year, 60,000 a year, but it’s very expensive here.

It’s more expensive than Honolulu. But by the time I left my day job in 2012, my investments were generating about $80,000 a year in passive income, which was a total livable income stream. I’m not bawling out buying fancy stuff and doing all that, but it was enough to leave and to take the leap of faith.

And because I had a severance package that paid for five years of living expenses, I said at the age of 34, that’s like leaving at age 39 or 40, which was my original target.
I did the same thing. I set away an X amount of money. I think it was like 50 or a hundred grand. And I figured that would be enough personal expenses to get me down the road a couple of years. And surely I would find out if this real estate syndication business would be successful by then.

But just to get an insight, cuz I think a lot of people are using folks like yourself as the test pilot in a way, in different terms, right? Fat fire, lean fire.

I’ll define the first two. Maybe you could define the other two that you coined, like barista fire and the others. But I would say I personally like fat fire. I don’t buy stupid things, but I buy things that are, hold its value over time. I do like nicer cars. I would buy an iPad.

If I’m gonna buy an iPad, I’m gonna buy the best freaking one. Or, but some people are lean fire where they’re just, these are the personal finance bloggers that retire with 800 grand. And they calculate that they can live off 45 grand for the rest of their life. And I’m scratching my head, but what’s the other two?

And where did you personally fit into all of this and maybe has it changed over the years? I think first of all, everybody’s lifestyle is different. So you gotta just accept it the way it is here in San Francisco. You qualify for low income housing. If you make under 115,000 a year and with a family of two children, and I have two kids.

And so my idea was to live off as an individual off $80,000 a year in investment income. When my wife left her day job at age 34 and a half as well. We decided to go for 150,000, just equality, doubling that number. And then we would add about $50,000 for each child because it’s expensive, right?

Preschool is like 2,500 a month. We pay for unsubsidized healthcare, which is now 2200 a month. And this is after taxes. So when I first left in 2012, I would say I was. You can call it wifi, actually wife, financial retirement, financial independence, because my wife who’s three years younger than me kept on working.

So I got her health insurance benefits and I told her if everything works out after three years, you two can join me by retiring early, cuz we believe in equality. And so WIFI is one way. Barista fire is interesting because. What if you take a job? I always thought maybe I’d take a job at Coldstone Creamery down in Honolulu somewhere and just get some health insurance, be a bartender or something like that.

So long as I can get some health insurance, like disaster insurance, that would be really helpful. Then you’d make whatever it’s $15 an hour or some spending money. And, you eat a lot of ice cream for free or drinks. So that’s barista fire, where you get a job, get some healthcare benefits and you fill that gap.

So you’re doing like. Just whatever, easy job to fill in that gap. But in terms of like the fat fire, lean fire, all that it’s just a gradation of how much you wanna spend in your daily day lifestyle. For us, I’ve done the calculations and you look at my budget for a family of four to live a middle class lifestyle in San Francisco is over $200,000 a year after taxes.

Yeah. Before taxes. 200 to 300,000 a year. And if you can make sure that you’re living fine, you have a house, you have a car, you go on vacations. So that’s my definition of what I want in terms of my post work life. So a lot of the listeners to hear are guys in that million dollar to few million dollar range.

Obviously you’ve moved past that, but what are some of the insights of early financial independence moving from that particular airspace that you can recall from your journey? In 2012, I left with about 3 million at age 34. And that was through like 13 years of 50 to 80% savings and investing.

And what I discovered was, even though I lost 80% of my income, my active income caused me to lose my job. I was happier because I had all the freedom in the world. I didn’t have anybody telling me what to do. I could wake up whenever I wanted without an alarm clock. I could play tennis at 11:00 AM, go boogie boarding at 3:00 PM after an afternoon siesta.

So what you should realize is that you probably won’t need as much as you think. Because you will gain so much more freedom and you’ll be much happier. So when I was 33, I started to get gray hairs, a lot of gray hairs, and I had like jaw pain. I had back pain, all that stuff. And when I left about six months after I left, cause I felt so much more relaxed.

The gray hair started going away and I stopped losing my hair. And so now at 45, I’m like, Hey, I still got my hair. I don’t have that pain as much anymore. And it was just, it was like that feeling of just freedom and a lightness from your shoulders. It was just priceless. It really was, and is priceless.

I don’t think people realize when you’re in the grind, you’re in a banking consulting industry, law, doctor, whatever, any high income paying job you’ve got. There’s a lot of stress and pain. And I don’t think people realize how much stress and how much pain they’re going through and they’re just sucking it up and keeping it hidden and just withholding it until they finally leave.

Now, what do you say to this kind of person? They get on the path to financial freedom. It’s not gonna be as instantaneous as nothing is, but they start to realize that FI is maybe three to six years down the road. And they somehow find a less stressful job, they stop caring a little bit.

It’s very close but they justify it as keeping a day job. As their kids are, your guys’ kids’ age. You can’t take them outta school. Like really can’t really travel too much because they’re stuck in school and you only can take ’em out four times and maybe a long summer.

These are like the. Gradations of possibilities and they’re good options. Would you still argue for just knocking it in the head and get to FI and quit? Or is that a good option? I think the luckiest people are the ones who find work that they love to do. I didn’t find that, I was miserable after the first year, but I gutted it out after 13 years of switching jobs.

So that was in a new city. So that was pretty fun going from New York city to San Francisco, but in terms of finding that lower paying job that provides more balance, I think that’s great because the ultimate goal is to do something that provides a meaning and purpose where you can still have a balanced and secure lifestyle, going all or nothing is extreme. And I did that because my job stock was like 60, 70 hours a week. Lot of stress, it just didn’t feel worth it, but that’s the irony, if I didn’t have a really stressful job right. Outta school I probably wouldn’t have saved as aggressively. I wouldn’t have learned as much about investing and trying to diversify my wealth. What did you do right outta college?

Same thing. My job absolutely sucked. I was traveling a hundred percent of the time and they treated me like crap funny guy construction, that was just how it is. So suck your job the more you want to get out. So if you can find that job that provides good balance. I would consider yourself blessed. Why bother trying to get to FI. Yeah, to me that ‘s a trifecta you can have, if you have one of these two things, you’re fine, which is you enjoy what you do, which I didn’t.

Number two, you like who you work with and then number three, you like your boss. If you have two of the three of those, consider yourself lucky. Yeah. If you have all three of them, don’t tell anybody. Cuz you’re probably living a dream, but yeah. Sometimes. As you’re trying to pass down this wealth and legacy, sometimes the insight of this struggle going through was what was needed to come to this path and this realization.

But I guess moving on, you’ve transcended to past that, end game mark, right? What are, what were some of the takeaways? Yeah. And some of the epiphanies that happen that you progress through? The first thing is it’s really jolting once you. No longer do your day job for however many years, right?

Because 40, 50, 60 hours a week, you’re spending that’s your identity. So once you stop doing that it’s very disconcerting. Not comfortable. And there’ll be a point maybe six months, maybe a year where you’ll feel lost. You’ll not know what to do because there’s only so many tennis matches you can play.

There are only so many European churches you can see before they all start looking the same. And you need to find something you enjoy doing that provides purpose because without purpose you’ll feel lost, you’ll probably feel sad. You might even get depressed. And so it shows that money is not the answer to all your problems.

Money is money helps with you not worrying so much about money or where your meal is gonna be. If you can get those stresses away and provide for your family, you’re gonna feel less stress, but it still leaves that hole of what to do. So it’s important before you leave your job. To know what you’re gonna do, retire to something, not from something.

And I recently celebrated my 10 year anniversary of being an early retiree and I called myself a fake retiree because these posts don’t write themselves. My book, buy this, not that it took two years to write. It takes a lot of work, but it provides a lot of meaning and purpose. And so that’s why I feel really lucky.

I feel like I have that trifecta that you mentioned. My wife is a really good boss. I like what I do, and I feel like I provide purpose. Yeah. The concept of ikigai, something good for the world. Obviously I’m a reader. Something you can monetize, something you’re halfway decent at and something you enjoy.

Yeah. But, I think it ‘s rare to find somebody, somebody to find something that hits on all four of those checkboxes. It’s rare, but I don’t know how much effort we really put in. Making to try to get those four things or those three out of the four, two out of the four.

You gotta be really intentional. If you wanna achieve financial freedom, you gotta be intentional by making a plan, reverse engineering that plan and figuring out how to get there year by age, whatever it is. And it’s the same thing with finding purpose in your life. How we go through the motions and then we wake up five to 10 years later and wonder.

What are we doing with our lives or where did all our money go? But if you’re intentional with your purpose to figure out what exactly you want to do, have you spent an hour a week figuring that out, talking to someone? I would say most people don’t, they just go to work and then they go watch football and basketball, and then they go back to work again on Monday.

So I’d be more intentional. Yeah. I would say it’s very possible to be, get to financial independence, doing it passively on the side, on. 30 minutes every day after work. But to me, and I like to hear your thoughts on this stem, but as far as finding purpose, something that hits ikigai for you, I feel like you need to really not have a day job.

Number one, and like to go through this I call it like an air bubble, like six months or maybe several years where you just don’t do Jack and you just sit and ponder what you’re gonna do. Have that inkling, what you’re gonna do before you pull the cord? Yeah, I started a financial ceremony in 2009 while I was working.

It was a side hustle. It was just my journal, but I loved it so much. I would wake up at 5:00 AM to go write. I would come back, eat, and I couldn’t wait to get going, writing or connecting with people online after 9:00 PM. And that’s all I really thought about before and after work. And so it was a point where after two and a half years, I was like, you know what?

This is fun. I know it’s, you can make some money off of it to subsidize my severance pay and my passive income. So why not go for it? Because the worst case scenario is. I failed. And then I just go back to work at age 36 or 37. That’s the thing it’s like the worst, your fears in your head are often way worse than reality.

Yeah. I’m curious how your wife went through this search for an ikigai. Cause I think cats like yourself and myself and a lot of the listeners, were pretty intentional. Like even if we didn’t have a job, we’ll figure something out. Yeah, sometimes the spouses are just going along for the journey.

Did you need to help her figure it out or maybe give us a little insight there? We met in college at the college of William and Mary. She worked in finance. The back end, I worked front end, and we have always been together since college and we’ve always been on the same game plan.

So we had goals. Where do you wanna live? I wanted to live in New York city cuz I wanted to try it at least once. Where do you ultimately wanna live? I want to live in San Francisco or California because it’s a great lifestyle. It’d be nice to go to Hawaii as well. And then, so we always were on the same page in terms of our goals and we always reconvene every month, every six months, every year to make sure we were together as a team working towards those goals.

So when she saw me leave at age 34, Guess what she too was like, oh, I would like to leave my job cuz she didn’t like her job either. And after 10 years of doing one thing, it gets boring. It doesn’t matter what you do. Even if you’re an NBA baller, I have a friend who was on the Warriors and he won three championships after a while.

He’s yeah, I’m good. I’m good. I don’t, traveling, all that time for six months a year is too tough. I think I’m good right now. And it wasn’t hard for her to convince her to join me in fake retirement at the age of 34 as well. So we had a plan, I said three years, I’m gonna try to boost our passive income to 150,000.

And if that happens and if the financial samurai is still around and still growing or still doing okay, you two can leave, but before you leave, please take the advice. And negotiated a severance. So we had a perfect plan where she negotiated a severance. It was like a six figure severance and it was worth about six figures in the sense that she decided to work two to three days a week with the same pay and do that for three to three, it was like at least three to six months.

And that was like a great transition. And so we were always on the same page. So I guess to answer your question, just make sure you have regular dialogues with your teammate, because at the end of the day, you’re a team and that was another, not to openly promote another book that you have in confuse everybody, but you’ve wrote another, book on that whole severance pay, right?

Yeah. Negotiating that. Yeah. How to engineer your layoff, how to negotiate a severance, basically, because if you’re gonna leave your job early, You might as well, try to negotiate a severance, especially if you’ve been there for longer than a couple years, the longer you’ve been there, the more important it is to try to negotiate a severance, because if you quit and you say peace out, you’re leaving your boss and your colleagues in lurch.

It’s hard to find a replacement. It might take three months to find someone and then it might take another three months to train them up to speed. So if you can negotiate a severance, why not? Don’t break up with someone over text message or ghost. Have a dialogue and say, Hey, how can I help find my replacement?

Train my replacement to ensure that there is seamless transition and as a reward, how about a severance package? And if you get laid off, you might get a severance package, but you also are eligible for unemployment benefits for up to 26 weeks usually. And we, you hit the honey hole with our podcast listeners. A lot of ’em are just on the edge there.

The best advice I had was just like, maybe just say you’re crazy or something, and then you can go on medical disability or something like that. That was the best advice I had. So I recommend everybody check out that book, but let’s talk about the new one.

Buy this not that which is available on Amazon. Yeah. It’s available everywhere. Buy this, not that. How to spend your way to wealth and freedom. I started writing it in early 2020. Finished it in 2022. It’s with a portfolio penguin, random house. And it’s a book about helping you achieve financial independence sooner rather than later, but more importantly, it’s a book about using a proper decision making framework to tackle some of life’s biggest dilemmas.

And these dilemmas can include, should I live in a low cost area of the country to save money or move to New York city where it’s super expensive, but the career opportunity is greater. Should I join a startup or should I join an established firm? Should I. Have children early or later, should I invest in stocks for real estate?

So I really tackle a lot of these big dilemmas because at the end of the day, money is just a means to an end, to have a better life, to have a greater life, more purposeful life. And I don’t want people looking back on their lives with regret that they didn’t try or that they didn’t make the right decision because they didn’t know what to do.

The great saying. If I knew then. What I know now things would be better. Things would be different. So the easiest way to never say that again, is to learn from people who’ve been through what you might go through and that’s the purpose of buying. That’s not that right. Never take advice from those who are not financially free.

As I say for those of you guys, who’ve checked out my book, I do this in a very paradigm manner. I think. The section where I say like the mistakes of what, how people do investing in 401ks and stuff like that, and buying a house to live in early, that’s basically what Sam’s book is, but all of it, and he goes into many more of these binary decisions, this is This, for a lot of analytical people, like this is what my marriage counselor or my tool book tells me is like people who are analytical and there’s a lot of you guys out there, you probably get really pissed off when your spouse tells you to explain why you’re doing something or why you guys should do something because you did like fifth, like five hours of like analysis in your head.

And you don’t like to explain it. And that’s how I am. But. I think the nice thing about this book is there’s a lot of things in there, like where I would just say, just don’t start a startup, right? If you’re not looking for cash. But Sam goes through each of these little aspects and takes the time.

And I personally don’t really listen to podcasts these days cuz you can’t get much in books 40 minutes, 50 minutes, it’s all like just a tip kind of information. I’ve fallen back to the basics of reading books, because to put a book together it’s long form contact, you actually need to think about what you’re writing.

It has to be concise, cuz it’s gonna live out there forever. Where to meet podcasts are like TikTok to books in a way short form content. And it’s just the surface. Took out the book, buy this, not that But I don’t know anything else. You think that our avatar out there you’d like to kinda.

Do you have many more insights or anything you think we missed there, Sam? I think just from this, not that one of the core principles is to encourage you to think in probabilities, not absolutes. So don’t think you need a hundred percent certainty before making a decision. Otherwise you’re gonna miss out on so many opportunities.

I didn’t know, with a hundred percent certainty, that if I left my day job in banking, that was paying really well. That I’d be okay. I didn’t know that, but I had a good feeling, at least a 70% chance that I would turn out. Okay. So I have a 70, 30 decision making framework that says, if you believe there’s a 70% probability or greater that you’re gonna make the right choice, I say, go for it while having the humility and understanding, knowing that about 30% of the time, hopefully less you’ll get it wrong, but unless it’s a catastrophic.

You’re gonna be fine because you’re gonna learn from your mistakes and learn how to be a better decision maker going forward. So think of probabilities, because life is, there’s no certainty in life, you always have to be calculating. Is this the right decision or not? But you start thinking about probabilities regularly.

If things become more and more like a matrix where you can see, oh, so you can figure it out. And it becomes a huge competitive advantage. When you’re going into battle with anybody or any kind of competitive situation. Did you make up that 70, 30 thing? Because I’ve heard it before from a CPA to being named nameless that if there’s a 70% chance he’s gonna win an audit, he just does it.

He takes the risk and does it. I have never heard of it, but that’s my internal mantra, cuz I’ve been working on the trading floor for 13 years. We make bets all the time. We make prop bets. Can you eat $35 worth of taco bell in one hour without puking? For example, that’s like what we do. We take tiger woods or the field with five to one odds.

We’re always making bets. And I think this decision making framer has been honed in me since working on the trading floors at Goldman Sachs and Credit Suisse for 13 years. And so it’s helped me think about things because a lot of people, they don’t have the right risk parameters in place. They don’t have any probabilities in place, you can really pick people off if you want to, by throwing out these different lines of risk. And that’s what, like the professional oddsmakers do in Vegas or in the UK, they create these odds that are, try to be as 50, 50 as possible. So they’ll never lose and they’ll just earn a spread.

And so that’s how you have to think, but I don’t think most people think that way, they just think, ah, I’m gonna wing it, or I gotta believe a hundred percent. That I’m gonna get the job before I apply, because there’s a lot of uncertainty and there’s a lot of fear. And when you start thinking about probabilities, you start gaining more courage.

And I think half the battle is being the courage, having the courage to go for what you want and being true with yourself. Yeah. And it, yeah, distills down to uncertainty, right? Like people who aren’t very successful, they just don’t. They just cling onto what’s certain. But I think another part of that is having enough net worth in a very secure thing, like infinite banking or something where you can hang your hat on, allowing you to hold onto the side of the pool as you go and make bigger shots.

I know, as you’ve expanded from your writings, you expanded into more venture capital stuff. And I tell PE other people look just because these higher net worth guys are doing something doesn’t mean you should. That’s why we people will start with the basics, just go after cash flow first because you cannot sustain a fall or a bad deal like Lane and Sam can.

But yeah, I think the biggest thing is just, read the book and just fill your mind with good stuff. So you have, can actually hold a conversation and expand your network with other people doing this. It’s so funny. So this is my first traditionally published book and it took so long.

So now that I’ve written a book, I appreciate every single book that has been published that comes to my doorstep. Or I see it on a bestseller list because I know how hard it was to write a book. Mine took two years, 15 plus revisions over and over again, polished. And golf is boring when you watch on TV, but if you play golf, If you actually get on the field, then suddenly it will be amazing.

And so definitely reading books. I agreed to read more books, people. The wealthiest people, the smartest people in the world, are reading books all the time, because it is written by an expert in that field. And it’s really hard to get a literary agent and it’s even harder to get a book published by a big publisher, like the gaunt.

It’s impossible. I tried to get a literary agent 10 years ago, and I got rejected by everyone. And so I spend more time reading books. It’s the best return on your investment ever. Let’s say you spend $27 or $25 buying a book. If it’s a good book, which most are the best, the best sellers are. It’ll provide a hundred times more value than the cost of the book immediately.

And that value will compound over time. It reminds me of the concept from Cal Newport deep work. I think that was his book. He’s a fellow portfolio penguin author. So like basically the concept folks have is look, everybody’s lazy and they just go after they just read the headlines.

Nobody reads the article. Everybody just listens to the podcast. That’s easy and they don’t read the dent book. And they don’t do things that are hard or more deeper work stuff. And that’s really where the gold is. Yeah, buy the book folks and listen to a simple passive cashflow podcast, despite what I’m saying, I do think everything is rational long term rational.

And so what I mean by that is if we want something bad enough, we’re gonna figure out a way to get there. And if we don’t figure out a way to get there Chances are high that it’s probably because we didn’t want it bad enough. So I want six pack abs. But I don’t want it bad enough to have a huge caloric deficit diet and do sit ups and pushups and all that every day for the rest of my life.

So forget it. I don’t care, but I do want to have my freedom. And it’s interesting once you have children that time becomes even more valuable because you juxtapose your one timeline against your child’s timeline and your child looks like they grow up way quicker than you, because they’re always changing and they’re always learning and developing.

And so personally I’m afraid to lose that freedom by having to go back to work, because I know my kids will be 13 years old one day and never want to hang out with dad anymore. They wanna hang out with their friends and then they’re gonna go to college and I’m sure 90% of their lifetime will be already spent.

And that’s it. Time is done. So I hope people can also feel the urgency of time to calculate what their time is worth. Because if you lose 35% of your investment portfolio or net worth in the next bear market, you have to calculate how much time based on your savings rate and your income, you will need.

To gain back those paper losses. And if it is more than 12 months for me, forget it, I don’t wanna do it. So that’s why my risk tolerance is relatively low. But if you’re young and you say I’m willing to work for three years at my saving rate to gain back my losses, then you have a high risk tolerance, then go for it. Take that bet. Swing for the fence. Great insights Sam. Again, folks Buy This, Not That on Amazon, and we’ll see you guys next time. Aloha. All right. Good chatting.