Financial Samurai 2014 Personal Year Review

As the year draws to a close, it's a great time to reflect on our achievements and setbacks. Many of us often focus on the latter half of the year, forgetting milestones from earlier months. This cognitive bias can skew our perspective, making it vital to assess the entire year for a balanced view of our personal and financial growth.

Looking back at 2014, I want to share a comprehensive overview of my experiences, both the positive and the challenging. By doing so, I hope to provide insights that can inspire others to reflect on their own journeys and perhaps take stock of the lessons learned along the way.

Positive Highlights from 2014

1) The bull market continued. The stock market showed impressive resilience in 2014, achieving record highs with the S&P 500 climbing over 2,080 and the Dow Jones Industrial Average surpassing 18,000 for the first time. This bull market allowed for substantial gains, rewarding investors who had the foresight to stay engaged in the market. The fact that many companies base bonuses and promotions on performance in the latter half of the year further emphasizes the importance of maintaining an active investment strategy throughout the entire year.

2) Secured a dream home with a view in San Francisco. After years of searching, I finally discovered an affordable property with a stunning panoramic ocean view—something I previously thought unattainable in a city where the median home price hovers around $1-1.1 million. This discovery came after exploring the less conventional western areas of San Francisco, opening up a world of new opportunities and properties that met my criteria.

3) Committed to a new consulting job. After nearly two years of enjoying freedom from the corporate grind, returning to work was a significant decision. I accepted a part-time consulting role at a Silicon Valley financial tech firm. This experience was both refreshing and challenging, providing a unique perspective on startup culture, a stark contrast to my previous corporate environment.

4) Attended Wimbledon to see Roger Federer. As a lifelong tennis fan, witnessing Roger Federer play live at Wimbledon was a bucket list moment. Despite the steep ticket prices of $1,300 each, the experience was priceless. I also had the chance to celebrate my friend's milestone birthday while engaging with tennis legends, enriching my passion for the sport.

5) Online business growth. My online presence flourished in 2014, with organic traffic increasing by 50% and revenue surging by 70%. This growth was driven by consistent content creation—over 180 posts published throughout the year—resulting in loyal readership and engagement. The advantages of organic traffic cannot be overstated, as it is both sustainable and cost-effective.

6) Diversified my investment portfolio. Mid-year, I made a strategic decision to invest in a venture debt fund, which promises a preferred return of 9% and targets annual returns of 16%-30%. This move exemplified my commitment to diversifying my investments and exploring new opportunities.

7) Revitalized underperforming income streams. A thorough analysis of my passive income sources revealed that my Lake Tahoe vacation property and peer-to-peer lending investments were not performing up to par. To address this, I enhanced my marketing strategies to promote my Lake Tahoe rental and reinvested in my Prosper account, which yields a commendable ~7.5% return.

8) Built a client base for personal finance consulting. One of the most rewarding aspects of my year was helping individuals achieve financial security through personalized consulting. Despite not actively advertising my services due to high demand, I was thrilled to assist clients in significantly boosting their retirement funds and navigating career transitions with maximum benefits.

9) Achieved a USTA ranking upgrade. My tennis journey took an unexpected turn when I was bumped up to a US Tennis Association 5.0 ranking from 4.5, despite a mediocre 6-5 record in 2014. This new ranking presents a fresh challenge, as the majority of 5.0 players are competitive college athletes, pushing me to elevate my game.

10) Strengthened relationships with loved ones. I made a concerted effort to connect more deeply with family and friends, embracing opportunities for physical visits and regular communication. While I recognize there's room for improvement, I took comfort in maintaining harmonious relationships, free from conflict throughout the year.

Challenges Faced in 2014

1) Exceeded comfort zone spending. The purchase of a fixer-upper property forced me to stretch my budget beyond comfort for four consecutive months. Although I had allocated funds for the remodel, it felt unsettling not to save, breaking a long-standing habit of saving at least 50% of my after-tax income.

2) Experienced renewed stress. Leaving the high-pressure corporate environment initially alleviated stress, but returning to work brought back old habits and pressures. Despite my intent to keep my consulting work to 25 hours a week, I found myself working beyond this limit, leading to physical manifestations of stress such as TMJ and chronic golfer's elbow.

3) Encountered scams. Unfortunately, I fell victim to two scams in 2014. The first involved purchasing a counterfeit home theater system, while the second was an electrician who grossly overcharged for subpar work. These experiences were disheartening and highlighted the importance of caution and due diligence in financial transactions.

4) Received a speeding ticket. After eight years of clean driving, I received my first moving violation ticket for speeding. Though it was frustrating, I turned this experience into an opportunity to help others by sharing insights through blog posts on traffic-related challenges.

5) Limited travel opportunities. My travel schedule was significantly reduced in 2014, with only three weeks away from home compared to previous years. This was largely due to my commitment to consulting work, where I often found myself working more hours than my contract specified.

6) Did not enhance writing skills. My writing style became stagnant, lacking experimentation and growth. Moving forward, I plan to challenge myself by exploring new writing techniques and formats in the upcoming year.

7) Business growth did not meet expectations. Despite my ambition to exceed my previous high income while working online, reality fell short. It took substantial time to surpass last year's total earnings, and I still have a way to go to reach my ultimate income goals.

8) Fitness goals unmet. My aspiration to achieve peak physical fitness fell flat, as I struggled to maintain my ideal weight of 150 lbs. Although I know I am not overweight, as an athlete, carrying extra weight affects my performance on the court.

9) Discovered my first grey hair. The stress of juggling home renovations and new job responsibilities led to the discovery of my first grey hair. While it was a minor surprise, it served as a reminder of the pressures that come with daily life.

10) Missed lucrative investment opportunities. I often found myself hesitating to seize promising investment opportunities due to doubts or premature selling. Notably, I regretted not joining companies like Uber and Airbnb, which have shown tremendous growth potential.

Reflections on 2014

Looking back at 2014, I would assign it a letter grade of “B.” Compared to the monumental shift of leaving my long-term job in 2012, this past year felt relatively standard, lacking the excitement of risks taken. Nonetheless, the year offered important lessons and valuable experiences that will inform my approach moving forward.

The surprise upgrade in my tennis ranking stands out as a highlight, while the experiences of being swindled serve as reminders to remain vigilant. Despite the challenges, I remain optimistic about the future and eager to see how the lessons learned will play out in 2015 and beyond.

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