5 Money Lessons I Wish I Had Known SOONER!

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If I could go back in time, there are several things that I would do differently with money. Also with other things of course but since Wealthy Affiliate is an online business community, we are going to talk about choices with money in this post.

Since I don't have a time machine, at least I can make better decisions in the future and share my lessons with you hoping that you can benefit.

I'm not any "guru" nor I have achieved super extraordinary results (yet!) but I use this post as a self reflection to learn from my experiences and I'm sure it can make you think your own choices with money too.

And despite these mistakes I've been able to achieve much better results with money than majority of the people so it's also a proof that you don't need to be perfect to succeed. It's a lifelong learning process.

1. Start Investing Immediately

When I was even younger, nobody taught me that when I earn money I should invest it somewhere. Whenever I had some extra money I just put it in my bank account.

However, at some point I started listening to teachings online about investing and I realized that just by putting my money to stock market or index funds instead of a bank account, I can start making at least little profits right way. And over time, compound interest will make its magic.

Gladly I realized this at some point and I put my extra money from the bank account to stock market / index funds instead of keeping it in the bank account.

If I will ever have children, I will probably open them an investment account the moment they are born and start investing for their future right away. Once they'll be 18 years old, they'll have a good head start for their lives talking financially. I have a close friend whose father did something like that and it worked great for him.

Of course, investing in the stock market / index funds will not make you rich quick but it's just so much wiser than holding your money in the bank account.

Therefore, I've helped hand-by-hand several of my friends and family members to start investing in the stock market instead of keeping money in the bank and almost all of them have thanked me for that later. Thanks to teachers online who taught me this!

2. Invest in Your Education

I used to be extremely frugal. I was able give some money to church regularly or buy my friends some gift but I denied buying anything to myself that wasn't necessary. If you have watched videos from Grapam Stephan from YouTube, I was something like that. I got pleasure from saving money instead of spending it on worthless stuff.

That philosophy is great to some extent. Today most people are probably in the other extreme spending money on useless stuff that they don't need but...

Not spending money on almost anything was also holding me back...

One of the richest man on Earth, Warren Buffett, always says that investing in yourself is the greatest investment you can make because nobody can take it away from you.

Now I've invested $1,000's in online courses and tools and I can tell that probably every single investment that I've made in my own education has already paid itself back handsomely. And it will keep on paying dividends for years to come.

Stock market may crash...

Real estate prices may crash...

Your business ventures may faill...

But if you invest in your own education, you have the skills to make money for the rest of your life.

Like Jim Rohn said, "Focus on improving your skills and your skills will make room for you."

That being said, I want to add that be careful with some "online gurus" who charge you $997 for some crappy course that you can get for free on YouTube. There is good education that is super valuable but then there are also those "gurus" who are just preying on the weak.

Wealthy Affiliate for example is a perfect example of a good investment. Investing some little money on education and tools in Wealthy Affiliate has paid itself back so much.

As the time goes on, I'll keep on investing more money and time on learning skills and I recommend it to you too. The best investment that YOU can make for others is to improve yourself.

Because once you become smarter, more skillful, more creative, more caring, etc. that will impact positiely all the people around you.

3. Take CALCULATED Risks

Being an entrepreneur is NOT risky.

Being an entrepreneur is the safest option that you can take.

Think about it...

You can build, for example, 5 strong income streams as an entrepreneur. If some of them fails, you still have 4 income streams and you are still doing well.

If 2 of your income streams fail, you still have 3 income streams.

Being an employee is super risky. You only have 1 income stream and if that fails, you're in trouble.

I had bought into a lie that being an entrepreneur should be risky... For that reason, I invested at some point in some stupid things that didn't make any sense and I lost money.

I realized that as an entrepreneur you shouldn't aim for taking risks. That's not the goal at all. You should only take WELL CALCULATED risks.

Take "risks" where you can only lose very little but win very BIG.

Going after your dreams is often like that... The worst that can happen is learning from the experience and perhaps losing a little bit of your money. But if you succeed, the rewards will be great.

Being an employee is a high-risk game. You lose your job, and you lose your income. When you're an entrepreneur you learn to manage risk.

Risk comes into play if you don't know what you are doing. Once you know what you are doing, risks are well managed.

4. Don't Raise Your Expenses Too Much...

I told you earlier that it's good to invest in yourself... However, that doesn't mean spending money on everything.

A typical thing that happens is that when people's income rises, they'll start spending more... More money into food, rent/house, experiences, etc. Some spend money on clothes, watches and whatever you can imagine.

Eventually, they realize that even though their income is much bigger, they don't have much left after all the expenses.

This happened to me a little bit. Not fully though but I realized that I was spending money on stuff that didn't add any vaue into my life.

For example, I lived in a nicer apartment and I realized that I don't need it. Or I used to eat out 2-3 times a day and realized that I could eat healthier and even faster at home.

This doesn't mean that you should keep some religious budgeting. I don't believe in super strict budgeting... But I advise you to pay a little bit attention on how to spend money when your income goes up.

In the past, I didn't need to do any budgeting because I virtually didn't spend money on anything useless. But if you want to grow and invest in yourself, you will need to spend some money and you'll need to evaluate what's worth it and what's not.

Ask yourself what really brings value into your and other people's life. Invest money and time into that.

Usually, investing money on the following things gives great returns:

  • Your Business
  • Gifts to Your Loved Ones
  • Experiences Rather than Things
  • Education
  • Useful Tools

Of course, these are just some ideas. Not every experience, gift or tool is worth it so you should evaluate yourself...

In my experience, cheap and expensive things don't have much difference after all. It just depends on how we perceive things. $3 kebab can be as delicious as $40 steak (both a bit unhealthy though but you get the point).

By spending more money, you don't automatically get more value. Eating oatmeal, eggs, vegetables, fruits, chicken and other healthy things at home is affordable and can also bring you the most joy.

I know... It's a bit silly example but I just want to give you one really practical example because everyone is spending money on food. I could give also other examples but then this post would be 5,000 words long...

5. Keep on Working!

There was a time when I became a bit too comfortable and I've seen this happening to so many other people as well.

It's kinda counterintuitive. You might think that being comfortable is something that you want to pursue but it's often the exact opposite.

If you are too comfortable, you are probably not growing. And if you are not growing, you're dying inside...

I had achieved results that were better than what I had achieved before and it felt great. But then I stopped doing the things that got me there.

Instead of working much harder to go the next level, I started working less and thought everything is going to keep on growing. Well, that wasn't the case.

I started playing games on my phone and chess on my computer. Doing all kinds of "fun things" that weren't so fun after all.

Tony Robbins says, "Progress equals happiness." and since I wasn't growing I felt losing the joy a little bit. I realized that I stopped growing and I should get back to working as I used to.

Once I started working again like before I started getting back the same drive and joy that I had.

Recently I read from James Clear book that people often are too goal-oriented and instead should be more focused on the process and building the right habits.

If you are too focused on a goal, you keep on working until you achieve it but then you stop. After hitting your goal, you'll lose the momentum and become comfortable. And that's exactly what happened to me.

Instead, a better approach is falling in love with the process and the habits. Goals are just a direction but once you reach them, you don't stop doing what you are doing. You just set a new goal keep on doing the same habits that got you there.

Falling in love with the work and the process itself also guarantees that you don't go into a trap that "once I achieve x goal, I will be happy." You don't need to wait for achieving that goal to be happy because you can be happy right now by practicing the right habits and working.

Fall in love with the process and keep on working hard when you achieve your goals. Don't become too comfortable.

Have you ever wondered why there are stories of super star athletes ending up broke and unhealthy after a strong career? Well, I think here's part of the reason. They were just extremely goal-oriented. Once they hit the goal, they stopped doing the right things...

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What do you think?

What are the money lessons that you wish you had known sooner?

I'd love to hear your thoughts in the comments below!

It's Your Time!

- Roope "Fall in love with the process" Kiuttu

PS. If you enjoyed this post, share this with your friends who might benefit from this information!

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Recent Comments

58

I firmly believe that personal finance is a subject which should be taught in school.
Like you Roope, I would have made different choices at different stages of my life with the benefit of the knowledge (and experience) I now have, or at least I think I would have!

Rick

Hi Roope, An interesting post, thanks for sharing.

For me, an online business is much better than a "real life" especially since real businesses involve handling cash which brings out the worst in some people´s behaviour. With an online business, everything is done electronically.

A second lesson is never to trust what someone says that they will do, until they actually do it. When they have actually done it, you can believe it. There is many a slip between cup and lip.

Alan

Great advice Roope. I particularly like the points about continuing to work to grow and develop.

In terms of money lessons. I have a few.

Number 1. Never ever ever buy time share. Its a drain on your resources and the bills just climb and climb.

Number 2. Credit cards are NOT credit cards! Think of credit cards as "DEBT CARDS". That is what they are. Use a Charge card such as American Express instead, that way you limit y9our expenses. DEBT CARDS (aka Credit Cards) are just that, they give you DEBT. & Banks are always happy to loan when you have cash but not when you actually need it!

Oh, and always spend less than you earn. That is the only way to manage your money successfully.

Have a great day.

Trevor

Good points Trevor! Thanks a lot for sharing!

Actually, I've never acquired a credit card during my whole life. I've always just used a debit card. The interest of credit cards is high so I don't see a point of using them just as you explained.

Hi Roope sound advice, one of the things that doesn't come into the curriculum is the creation, prudent management and investment of money. I guess there are vested interest that doin't want to see that happen in the debt fueled society that we find ourselves.

I think one of the best things we can do is to invest in ourselves, that can have a big impact on us as an individual and also the folks around us. We all need to keep on working.

Thank you for sharing your reflections real food for thought.

Alex

Invest but make sure you have some funds that you can liquidate quickly in case of emergency. Don't tie all your funds up for years. Stocks are a long term investment. You're young enough to take risks because you have time to recoup any bad decisions.

Definitely don't be frivolous with money but do what you enjoy. Of course, I had an issue with eating out a LOT and the pandemic not only cured that but saved me a ton of money!!!

There's a classic book called Rich Dad, Poor Dad by Robert T. Kiyosaki that you might like.

~Debbi

I read it recently. I wish I had read it years ago. The goal is to get to the point where money works for you instead of working for money. The author busted his ass working for money so that he could retire young and have his money generate his income

It's another one of those "must reads".

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