2022 Financial Samurai Review: Prioritizing Family Over Money

Reflecting on a year can often provide clarity and insight into our personal growth. For many, it allows a moment to appreciate accomplishments and identify areas for improvement. In this retrospective, we delve into the multifaceted experiences of 2022, focusing on health, wealth, family, and personal projects that have shaped the year.

As we navigate the complexities of life, the balance of family, finances, and personal well-being becomes crucial. Here’s a deeper look into the various aspects that defined my year, with lessons learned and experiences gained along the way.

Health in 2022: A Journey of Recovery and Growth

Health is wealth, as the saying goes, and 2022 marked a significant improvement for me. After grappling with shortness of breath in 2021, I am relieved to say that this issue has seen a remarkable 95% improvement. My pulmonologist explained that asthma can resurface later in life, particularly for those over 40, which made my recovery even more gratifying.

This past year, I found that my anxiety and stress levels significantly influenced my health. The concern for my family’s well-being during the tumultuous years of 2020 and 2021 often weighed heavily on my mind, despite external successes. Interestingly, while the financial market faced challenges in 2022, my personal stress levels declined significantly. This shift suggests a connection between my mental state and my asset allocation strategy, which appears to align with my risk tolerance.

Improved sleep was another highlight of my health journey. I managed to sleep six uninterrupted hours most nights, complemented by 30- to 45-minute naps during the day. This is a remarkable improvement compared to 2020 when I often woke up after just four hours due to worry about my newborn.

Fitness: Small Victories Matter

Losing five pounds might seem trivial, but it represents a significant achievement for me. At 5'10", I now weigh between 167 and 168 pounds, and while I aim to reach 160, I am content as long as I can still fit into my clothes from 15 years ago.

The primary driver of this weight loss was a combination of moderate eating habits and engaging in pickleball. This sport has become a regular activity, allowing me to play for hours without the shoulder pain that limits my tennis sessions.

In May, after attending an indoor event with fellow dads, I contracted COVID-19 for the first time. The experience was enlightening, as it allowed me to understand the virus better and lessen my anxiety about future infections. Thankfully, I recovered quickly, which reassured me about my overall health.

Sports and Injury: A Balancing Act

Despite my passion for sports, I faced challenges with injuries, specifically golfer’s elbow and shoulder issues. My dedication to playing multiple games without adequate rest took a toll on my body. This year taught me the importance of listening to my body and prioritizing recovery.

Wealth in 2022: Challenges and Resilience

Financially, 2022 was a mixed bag, primarily characterized by a lack of growth. My biggest miscalculation was underestimating the Federal Reserve's aggressive stance on interest rates, which adversely affected the markets. Despite my net worth seeing a slight increase of approximately 1%, this was well below my target of 10% growth.

• The increase stemmed mainly from online revenue and passive income sources.
• In contrast, my stock market investments declined significantly, largely due to a strategic reduction in stock allocation from 35% to 30% at the end of 2021.

I have always believed that a conservative approach to investments is crucial for long-term stability. My ideal financial scenario emphasizes steady income with conservative returns, which mitigates the risks associated with volatile markets.

Real Estate: A Pillar of Stability

About 50% of my net worth is tied to real estate, and while the value of my physical properties remained stable throughout the year, my private real estate investments performed well. I experienced a notable exit that brought in over $122,000, demonstrating resilience in this sector.

Interestingly, my passive income increased by 10%, reaching approximately $380,000, thanks to rising interest rates and strategic property management:

• Treasury bonds yielding 4.2% – 4.7% contributed substantially.
• Income from my Lake Tahoe vacation property increased by $12,000.
• My larger rental home saw a $15,600 net increase in income.

Remodeling Projects: Challenges and Rewards

Much of my time in the first half of the year was consumed by a long-overdue remodel of my rental property. The contractor I hired unfortunately took two years to complete the work, but the end result was worth the wait. We expanded the usable space significantly, adding new rooms and modern amenities.

Despite going over budget by $15,000, the remodel added considerable value to the property, estimated between $350,000 to $500,000. This project taught me valuable lessons about patience and the complexities of real estate management.

Family in 2022: Cherished Moments

While financial challenges marked my year, 2022 also brought some of my happiest family moments. After three years apart, my parents visited for a week during Thanksgiving, creating memories that I will cherish forever. Their time with their grandchildren was a joy to witness, reinforcing the importance of family bonds.

Milestones and Celebrations

Two standout moments filled me with pride as a father in 2022. The first was attending my son’s preschool graduation, where I saw his social growth in action. The second was the day my son learned to ride a bike after several practice sessions; the sheer joy on his face was priceless.

This year also included many delightful family outings and visits from relatives, enhancing our connections and creating lasting memories.

• A memorable vacation in Sonoma on February 22, 2022.
• My sister and her son visited from North Carolina in March.
• A family trip to Lake Tahoe in August allowed for quality time together.
• Participating in our neighborhood Halloween festivities was another highlight.

Financial Samurai in 2022: A Year of Consistency

Throughout 2022, I maintained my commitment to producing content consistently, publishing three posts a week and a newsletter that reached a growing audience. This consistency has become second nature after 13 years of writing.

My focus has shifted towards the process rather than the outcomes, emphasizing the importance of sharing knowledge and insights over chasing metrics. This approach has allowed me to enjoy my work more deeply.

• My newsletter subscriber count grew from 46,000 to 55,000.
• I recorded 43 podcast episodes, exceeding my goal of 30.
• Despite a 15% decline in online revenue, I appreciated the journey of storytelling and sharing valuable information.

X-factor in 2022: Achieving a Long-held Dream

A significant personal achievement this year was publishing my book, Buy This, Not That: How To Spend Your Way To Wealth And Freedom. The journey began during the pandemic and culminated in a successful launch on July 19, 2022, where it became a Wall Street Journal bestseller.

This accomplishment has not only fulfilled a long-standing goal but also provided a sense of pride as my children celebrated my achievement at a local bookstore. It’s a moment I will treasure forever.

Other Personal Wins

• Winning multiple tennis championships.
• Exploring new friendships through pickleball.
• Reading 14 books during the year.
• Engaging in live TV interviews, sharing my insights.

Finding Happiness Beyond Financial Gains

Reflecting on my happiness, I realized that progress extends beyond financial metrics. Despite a challenging year financially, I found joy in my family’s growth and my achievements. It’s a reminder that not all success is measured by monetary gain.

Through the ups and downs, I learned to appreciate the brighter side of life, focusing on what truly matters. As we move forward, I remain grateful for the lessons learned and the experiences gained throughout this year.

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