What do Grant Cardone and I have in common? Hint: we do not fear an IRS audit

Once again, my CPA emailed me with a frantic message. She insists that I am going to get audited by the IRS

She says there is no doubt about it.

She emails this warning to me every year.

It is a tradition.

Some people have yearly family reunions, I get yearly warnings from my tax preparer.

Continue reading “What do Grant Cardone and I have in common? Hint: we do not fear an IRS audit”

How to prevent credit card skimming

For about $5, anyone can buy a credit-card skimming device and steal credit cards – even their passwords.

Credit card thieves get our card info using a device called a Credit Card Skimmer.

These credit card skimmers are portable capture devices that are attached in front of or on top of the legitimate credit card machine. Theses skimmers record the card data as we insert our credit card into the real scanner.

A lot of theft occurs at gas pumps because they are the least secure. This is why it is better to use the credit card option (instead of debit) because it does not need us to enter our PIN.

Check out this list of examples of credit-card skimming devices.

This detailed article reveals exactly how credit-card skimming is pulled off.

The good news is technology is catching up. Services like Apple Pay, Samsung Pay and Google Pay use encryption that makes it virtually impossible to skim credit-card data.

This is the best personal finance advice I have ever listened to

This is the best 73-minute video I have ever watched on personal finance advice:

In simple speak:

Net worth is bad. Cash flow is good.

Here are all the Garrett Gunderson books in my personal library:

Killing Sacred Cows
5 Day Weekend
What Would the Rockefellers Do?

Sunk costs – why I LOVE donating my bad choices to charity

The dictionary says a sunk cost (a.k.a. the sunk cost fallacy) is an amount paid that has already been incurred and cannot be recovered.

In simple speak: a sunk cost is when we make a buying mistake and obsess over it. Once an expense is made, there is no way to undo it.

Sunk costs are backward looking decisions (and costs) that we can never get back.

Famous examples of sunk costs include:

  • Wearing that expensive winter jacket in our closet that collects dust. For one reason or another, we never wear it. But we cannot donate it away, because we paid good money for it.
  • Maybe we suffer through watching a bad movie just because we paid for it.
  • We put our business into bankruptcy hoping things will turn around and get better.
  • Gambling the rest of our money because we have already lost so much of it.
  • Or even worse, maybe we have that loser friend who sucks the energy out of the room. And we cannot cut off the relationship, because we have known them since childhood and do not want to throw away years of memories.

Sunk costs are backward looking decisions (and costs) that we can never get back.

While most people freeze about honoring sunk costs, I embrace it as the cost of doing business in life. Instead of hoarding purchases (or experiences) from the past, I instead rid them from my life – fast. It helps me to progress into the future and improve my life.

I make sunk costs irrelevant in my decision-making process. I have no problem donating a $249.99 bread-making machine to charity if it collects dust on my shelf.

And I no longer hang out with people who bore me. Instead, I only do things that are a hell yeah!

Yes, letting go of life’s sunk costs can be intense and bold. But I embrace the cleansing – even at the risk of upsetting people.