top money mistakes

some five years ago, through the books "rich dad, poor dad" and "simplify and live the good life", i learned the importance of saving for your retirement as early as you can and the difference between an asset and a liability. i also learned that we should pay ourselves first and eliminate bad debts as soon as possible and to invest money instead of just saving it in the bank. despite knowing all of these basic money principles in my younger days, i was still bound to commit the following money mistakes the succeeding years:

1. i had little discipline about money. it was enough for me to know that i was saving up a certain amount each pay day for the rainy days. i did not even know how much or what percent as long as i save up. and i saved up only after i had spent. when i would get bonuses, even those which i did not expect, i would buy first then save up what's left. that's how i was able to buy my relatively expensive digital point-and-shoot camera early 2005 (the cost was a little over $400). my company gave me a "productivity bonus" unexpectedly and without giving much thought, i decided to buy me my shiny new toy. if i had invested that bonus in a mutual fund, i would have earned more or less 10% each year and the amount could have doubled after maybe 7 or 8 years.
2. after some time, upon realizing mistake #1, i became a saver. i did enroll for the savings and loans association in the company which would deduct 20% of my salary automatically each month and place that amount in a savings account shared by all the members of the association. the interest i would get from these savings would be relatively higher than what i could get in the bank. so, i followed the advice and paid myself first. it was 20% of what i was earning. however, after getting salary increases year after year, my contribution remained 20%. whenever i would get an increase, i would upgrade my lifestyle a little bit and keep spending the additional money i had managed to live without previously. this time i saved up first, but i did not have goals to increase my savings every year.
3. i shopped for therapy and i bought things just to replace something i had lost. i would spend on shoes and clothes just because i felt "unpretty" that day. i would spend on food "just to feel happy". when i was in the US last year, i bought many items just because i was feeling a little depress that day. what's even worse about these spendings is that almost half of these purchases were bought in credit and were not within budget. i was spending money and incurring bad debts. i used my homesickness or loneliness as an excuse to spend. i was spending money i did not yet have and banks are charging me for it. totally huge mistake.
4. i did not give back to the Lord faithfully. i have committed to giving back 10% of my earnings to the Lord's ministry but throughout the years, i would always find excuses to give less thinking that God understands. on some occassions, my excuses were valid. but on most, they were not. shame on me for spending what rightfully belongs to God and His church -- the workers, the pastors and their families and those who are in much greater need than me. despite this however, the Lord was merciful and faithful enough to allow me to realize my mistakes and continued to provide for everything me & my family needs and oftentimes, a little more. how loving our God really is!
5. without any solid retirement plan or investments in place, i decided to purchase a condo unit. i have several reasons for getting my own place and living independently but looking back, it would have been wiser if i had invested some of my savings on mutual funds (which would eventually become my retirement fund) rather than spending all of it as downpayment for the house.

so there. my top money mistakes. avoid them as much as you can!

here's the last one i would like to share: i did not write down my Life Dreams when i first read about the importance of doing it. i thought it was not necessary thinking that our dreams will always remain with us forever, just like our own shadows. they will follow us anywhere we go. what a great mistake to have thought this way! because after a year or so, what i thought i wanted to happen in my life started to become blurry even for me. whatever goals or visions or passions i had 5 years ago, started to feel strange and foreign. i lost sight of what i wanted and i lost control of my own life. until recently, i felt like being a supporting actress in my own movie rather than the lead star.

if i think about it, if my dreams were clear to me from the beginning and i am constantly reminded of it, i could have avoided many of my money mistakes above. sayang!

write down your Life Dreams so you will stay focused and committed. ask God to reveal them to you if you have forgotten about them or still unsure. ask God to whisper them to your heart again and write them down as He does. next post, i will share with you my Life (and Death) Dreams.