Six years ago I graduated from college financially illiterate. I had no idea about credit cards, mortgages, real estate, bonds, stocks, 401(K)s, mutual funds, profit and loss statements, salaries, taxes or budgets. I was in for a shock when the parental payroll finished and I was left with a $36,000 a year job, and no money at the end of the month. I tried to be as frugal as possible, but I kept seeing my friends (especially in finance and real estate) making hand over fist. So I jumped in, and really learned a lot. And in some cases it was a very expensive lesson. And in others, I am glad I learned what I did when I did.
Once I became a real estate agent, I learned a ton about cap rates, commercial real estate redevelopment, why some shopping centers were prosperous and why others failed to attract customers or tenants. I got to see P & L statements for some seriously weird businesses, including organic yarn manufacturers and indoor racetracks. I learned about adding value, and I learned a very important lesson, you have to know when to quit. I learned that lesson too late. The world is changing every minute, and trends are quick to come and go. I became comfortable with both an unsustainable business and lifestyle. I learned not to spend money I don’t have, and hedging my future on something completely insecure and unpredictable. I learned that there are only a certain number of risks I can take to still feel comfortable and financially secure. I also realized that money is only as valuable as the experience that it gives you, so giving up all of my time wasn’t worth it either.
While I’m not financial free, I’m more educated about how money makes me feel and how much I need to live comfortably and happily. That’s worth the ups and downs of the last six years.