Since starting Financial Samurai in 2009, I’ve been nailing better financial decisions because I spend a good chunk of time analyzing each big decision by writing about it. I’ve faced plenty of financial ups and downs, just like many of you. For instance, back in 2007, I bought a house for $710,000, only to watch its value plummet to under $400,000 in three years thanks to the financial crisis. I thought I was getting a bargain because the previous owners bought it for $785,000 just a year earlier. But, the overwhelming number of foreclosures at the time proved too much. If Financial Samurai had been around, I might have thought twice about that purchase.
Writing has been a solid strategy for tackling big decisions. For example, when I considered leaving a 13-year banking career to write full-time—a move that meant no steady income—I used a blog post to process the potential pitfalls. This helped me prepare mentally and financially a year in advance. By the time I left, I had reduced my work stress and taken more vacations, knowing a major change was coming. When I finally signed the severance documents, I did so eagerly, not with dread.
After quitting my job, financial vulnerability hit hard. Accustomed to a regular, substantial paycheck, I toyed with the idea of selling my house and moving into a cheaper apartment. This could have netted me about $500,000 after expenses. Writing a post during this time convinced me it wasn’t the right move. We were at the start of a real estate recovery, and my gut told me selling would be a decision I’d regret. Indeed, the value of my property has since more than tripled thanks to market changes and additional equity from mortgage payments.
Another big decision involved $420,000 from a maturing CD. Unsure how to reinvest and traditionally investing smaller amounts, I considered both stocks and real estate. The blog post I wrote helped clarify my discomfort with large stock market investments and the lack of returns on cash. I ended up using some of the money as a downpayment for a smaller house in a new area, while renting out my previous home, significantly increasing my passive income and contributing to alleviating the local housing shortage.
More recently, in the second half of 2015, the shaky economic outlook made me consider returning to full-time work, fearing that job opportunities might dwindle. I nearly took a low-paying job for security reasons but decided against it after writing about it. This reflection saved me from a potentially regrettable decision and kept me engaged in more fulfilling freelance and consulting work.
Writing isn’t just about documenting decisions; it’s a powerful tool for thinking deeply and clearly, helping to avoid financial missteps. If you can’t convince yourself or others of a financial move through writing, it might be wise to hold off until you can. This approach has not only helped me escape corporate America but also prevented numerous financial headaches over the years.
