Personal finance lessons
Learn from the experiences of others!
These personal finance lessons are a collection
of thoughts and comments of various persons about
their experiences with finances followed by our
We'd like to point out that these are not in any
particular order regarding timing or
1. Emergency funds are essential
This lesson comes from an article titled
"Personal finance lessons learned from Monopoly"
and concludes that emergency funds are as important
in the game of Monopoly as they are in real life
and the only difference is that in real
life there are more emergencies that in
Before beginning out financial planning my wife
and I had no idea of how important it was to have
this fund until we became aware of the number of
unforeseen events which can happen and for which it
was evident that we would need money to deal with
For this it is important that you analyze your
own situation and that you are thinking of creating
a fund for whatever event might happen.
2. Life mean relationships
This lesson also comes from the article
mentioned before and mentions that business owners
build networks of other professionals such as
lawyers, financial advisors, bankers and others
because they know that these will be needed at some
We are totally in agreement with this
lesson. Whether you are planning your
personal finances or beginning you business, you
will realize that you will need a variety of
expertise which you may not personally have.
Of course, you may wonder why you should pay
someone for advice instead of learning to do it
This is simply because it is more efficient to
use someone who already has the
education and experience to help you. In
other words, when you are paying an accountant, a
financial planner or a lawyer, you are paying
- professional quality work based in part on
knowledge and his experiences and
- for the freedom of not having to do these
things yourself, saving your time for other
activities more important
3. Every time your buy something you sacrifice
a bit of your dreams
This lesson come from an article called
"Personal finance lessons that rocked me like a
hurricane" and, in essence say
that every frivolous purchase is a
voluntary choice to postpone your
It also concludes that you should keep your
dreams in mind each time you pull out your credit
card to pay for what you're buying and ask yourself
if what you're buying really with worth giving up
part of your dream for.
In our opinion it is sometimes complicated and
contradictory when our dreams and personal actions
are involved. For example, the dream of
retiring young and financially free might be in
conflict with your habits of buying the latest
technology or the latest style in clothes every
time you get you paycheck.
For this, if you believe that your buying habits
are or could be a problem, perhaps it will be
necessary to rethink these to discover why you have
On the other hand, life is too short to make
every decision based only on how to save money and
it may be necessary and healthy to let go from time
to time provided that you are not facing any
extreme debts. The key here is to keep
everything in balance.
By the way, if you need to save money, please visit 101WaysToSaveMoney.com. This site is for anyone who wants, or needs to save a little
or a lot of money. These 101 ways to save money can be implemented in
anyone's everyday life.
4. Investing isn't just for rich folks, it's
In this lesson, the writer concludes that anyone
who can spend less than they earn can invest and
get great profits for their effort.
We believe that this writer wished to say that
now days it is relatively easy to invest and even
more so using the Internet. However, we must
point out that investing is a lot more than simply
buying some kind of investment vehicle.
First, it's about your objectives, risk profile, knowing the demand, markets, the pros and cons of different
investment vehicles, etc., etc. In a few
words, investing requires a made-to-measure plan
and knowledge about finances.
That being said, it isn't necessary that you
have to learn to do it all yourself -- life is too
short for that. On the contrary, review these
personal finance lessons (especially the second
one), seek professional help and get into action as
soon as possible.
5. "It's not always the popular person who
gets the job done"
This lesson comes from an article titled
"Personal finance lessons learned from famous movie
quotes." Specifically the character of Gordon
Gekko from the movie Wall Street, is who said
In this article it's mentioned that often it is
necessary to make difficult decisions to pay off
your debts and, as an example mentions that you may
have to give up certain comforts in order to pay
off what you owe and that these decisions are not
always welcomed by your family.
In our experience, when you analyze your
financial situation and you insure that your entire
family participates in preparing the plan and their
objectives are taken into account (although this
may be difficult) you are not necessarily the bad
guy because everyone in the family is
participating, is committed, and is aware that the
decisions are not simply imposed by you.
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lessons you've learned through your own experience,
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