The three biggest money lessons I’ve learned over the years

Now I don’t know about you, but I think many of us can have a complicated relationship with money. I certainly have. I’ve shared my financial journey so far – the good, the bad, and the ugly. I’ve had serious financial problems with debt, and then also had periods where I’ve been very comfortable financially. In other words, I’ve experienced two very different extremes. And during that journey, I’ve learned a fair few things about money. So here are the three biggest money lessons I’ve learned over the years.

GET YOUR HEAD OUT OF THE SAND

I spent way too much of my twenties with my head in the sand about the financial position I was in. I was way too scared to address what was happening, how much money I owed, and what exactly I was spending my money on. Don’t make the same mistake.

Things instantly improved once I took control of my finances. It was scary to write down exactly what I owed. And work out what was coming in and what was going out. Plan a budget that was manageable and that I could stick to. But taking control gave me a huge sense of pride and power that I was in control. As well as hope that I could find a way to become more financially secure.

LIVING BEYOND YOUR MEANS IS NOT COOL

Again, too much of my twenties was spent living pay cheque to pay cheque. And if I ran out of money, I could always use a credit card. I was young. And definitely dumb. I wanted to keep up with everyone. A new bag? Yes please. A girls holiday to Mexico? Of course! Everyone lives beyond their means right? Wrong!

I thought being in control of my finances is something that I would do when I was in a better paying job, or when I met someone and settled down. If only I’d realised sooner that it’s really not cool, or clever to be in debt because you couldn’t live within your means.

NOTHING WILL LAST FOREVER

When times are good, you think they’ll last forever. When I was in a very comfortable position with money, I assumed the good times would never end. I spent a little more, I stopped worrying about my budget and just took my eyes off the ball.

Equally, when I was struggling with debt, I couldn’t see the light at the end of the tunnel. But having been in both situations. I can confirm that things do change. And sometimes they can change in an instant.

So if you’re in a comfortable position financially, then make sure you’re planning for a time, when the good times might end. If you lost your job tomorrow, could you pay the mortgage? And if you’re in the midst of debt, just know that you can pull yourself out of it and there is light at the end of the tunnel.

So these have been three of the biggest money lessons I’ve learned over the years. Do any resonate with you? What’s the biggest money lesson you’ve learned?