Beyond the Paycheck: 3 Money Lessons I Learned the Hard Way (and How You Can Benefit)
90-Day Challenge: Day 12 of 90
Last night, our team celebrated our Q4 2024 achievers with a delicious dinner. But it wasn't just about the food and festivities. We always try to make these gatherings meaningful by sparking insightful conversations. The question we pondered last night was: "What was your biggest money lesson?"
It got me thinking about my own journey with money, the ups and downs, the mistakes made, and the wisdom gained. Here are three major money lessons that have shaped my financial philosophy:
1. Invest in Experiences, Not Just Things
My partner and I are passionate about travel. We believe that the moment we step out the door, our vacation should begin. That's why we prioritize spending on things that enhance our travel experiences, like convenient airport transfers, comfortable business class flights (especially for those long-haul journeys), and well-located hotels that allow us to maximize our time exploring. We also splurge on delicious food, immersing ourselves in the local culture through culinary adventures.
This philosophy extends to my family as well. I cherish creating lasting memories with my parents, especially on special occasions like birthdays. When they visit Manila from the province, I challenge myself to find new and exciting experiences we can share, making each visit memorable and meaningful. These shared moments are far more valuable than any material possessions.
2. Avoid Debt Like the Plague
I've learned this lesson the hard way. Early in my career, I misused credit cards, racking up debt that was four times my monthly salary. It wasn't until I landed a job in Singapore, with a tenfold increase in income, that I was able to fully pay off my debt and vow to never repeat that mistake. Now, I use credit cards strategically for discounts, points, and convenience, but I diligently pay off the balance in full every month. I refuse to let banks earn interest from me!
My experience with mortgage debt was another eye-opener. I purchased two 2-bedroom condos as investments, planning to sell them quickly for a profit. But then the pandemic hit in 2020, the market crashed, and I was stuck with two properties and mounting mortgage payments. It took three grueling years to finally sell them at break-even. The stress and worry were immense, and I learned a valuable lesson about the dangers of debt. I'm committed to staying debt-free and avoiding the feeling of being financially beholden to anyone.
3. Invest Wisely and Consistently
It's not about how much you earn, but how much you keep. And more importantly, it's about how much you invest to grow your wealth. Choose legitimate investment options and avoid get-rich-quick schemes that seem too good to be true (because they usually are!). I personally invest in stocks, ETFs, and a bit of crypto. My portfolio has seen significant growth – 39.6% in 2024 and a whopping 60.3% in 2023. I'm committed to consistently investing and growing my wealth to achieve my financial goals.
Learning from Experience
Money lessons can be expensive. I share my experiences in the hope that you can avoid making the same costly mistakes. Remember, financial freedom is a journey, not a destination. It requires discipline, smart choices, and a commitment to building a secure future.
What are your biggest money lessons? Share your experiences and insights in the comments below. Let's learn and grow together!
Peace.✌️ Love you all.😍