The principles of money

If you have been reading this blog, you know that I have made my fair share of financial mistakes.  I have blown up my investing account and been in debt for most of my adult life.  Each time, I learn something new about myself and my financial situation.  After a period of reflection, I try to improve or innovate.  If you have found yourself at the bottom of a well and feel discouraged, I understand.  My hope is that you will climb your way out and try again.

What Did You Learn?

Earlier this year, my husband and I tallied all our debt.  It was clear, we both had a spending problem.  We were putting expenses on credit cards when money was tight.  Other times, buying things that we could not afford.  We never imagined that we would have over $80,000 in debt.  As our debt began to increase, we believed that debt was a part of adulthood.  We stopped trying to find alternate solutions.  The reality was, that if we wanted to get out of consumer debt we needed to spend within our means.  We had to commit to changing the negative thought patterns and learn a new way of interacting with debt.  In our case, we decided to eliminate debt from our lives completely.  

Pick Yourself Up

We have all made poor choices when it comes to money.  Mark Cuban spent a part of his 20s in credit card debt.  It is why he is so adamantly against credit card debt.  He states, “paying off your credit cards after 30 days, or not even using credit cards, is the smartest investment you can make or not make.”  In 2008, Warren Buffett invested in ConocoPhillips.  He believed that this energy company would increase in value over time.  As it turns out, the company’s valuation was already stretched.  Buffett and Berkshire Hathaway took a $1.5 billion loss the following year.  We are destined to make money mistakes.  Your investment thesis no matter how well researched, will be wrong at times.  That is part of taking risks. You will never achieve success if you don’t try again after making money mistakes. If Mark Cuban or Warren Buffett would have given up after their failures, they would have never experienced greater success.  The same is true for you. Get up and start again.

Success is the Result of Action, Not Hope.

I have a vision of seeing my family debt free.  That cannot happen by hoping alone.  We had to act. We cut up our credit cards so we could not use them anymore.  Also, I had to start investing with a long-term vision.  That meant, that I had to learn to invest in a company and not a stock price.  It prevents me from blowing up my account.  I had to start doing research and read company financial documents.  If you want to change your relationship with your investments it takes more than faith, it takes action.  Dream it, plan it, and then execute. It may lead to success or failure.  That is a part of the journey. Learn what you can, then rinse and repeat. 

What do you have to lose?

If your debt is crushing you.  If your account is negative and the bank is calling. It’s time to make a change. What do you have to lose?  Take some time to evaluate how you got into your current situation, commit to a new direction, and move.  Don’t let the fear of failure keep you stuck in a negative cycle.  The act of trying again is courageous.  Let it move you forward, one step at a time. You got this.