Sometimes, I will be asked something like – “What would you tell your child?” For many people who work in the financial world, the usual answers tend to be things like: “Start investing as soon as possible.” Save more, spend less. “Go above your budget.”
Those are reasonable answers. One of those things can add a solid six figures to your long-term net worth if you start small enough. But none of that would be my answer.
Now, in general, I believe that you do the best you can at any given time, depending on your level of awareness and circumstances. So, I don’t think it’s good to regret the past.
However, if I am playing, my answer will be: I will tell myself – “The life you want will require you to change the way you think about yourself and the world, a lot.”
There is a lot of focus on the external actions you need to take – learn X strategy, sign up for Y app, read Z book. So, I was ready to understand that part.
What I was unfortunately unprepared for was how much I would have to change – my core beliefs about myself and the world, and my mental and emotional patterns.
There is this internal change that needs to happen in order to be able to create and maintain a new level of financial results.
I was not very interested in finance. Back in 2010, I wrote in a social media post: “If stock analysis and financials are where the money is, I’m not sure I want money anymore.”
I can’t remember what inspired this post, but I suspect it was a quantitative finance course I was taking at university. I was never mathematically inclined, and that bothered me.
So I ended up changing my major from finance to economics. After that, I didn’t know what I would end up doing with my career, but I was sure it wouldn’t be related to finance.
Fast forward more than 15 years since that post, I’ve helped countless clients create life-changing financial results through my education and training. Crazy how life works, right?
That change didn’t just happen by “learning” a few things. Yes, I had to learn how to invest, how to improve my net worth, and what global asset allocation meant. Yes, I had to “learn” things. But what made any of that happen in the first place was that I had to change.
I had to let go of many limiting beliefs. Especially after I left my finance job, I was convinced that I was “not cut out” for the world of finance. I thought it was too complicated, especially given numbers were not my forte.
Turns out it wasn’t that hard, and it didn’t require a lot of math at all. It was easier than my university studies had led me to believe.
I had to change my worldview. I had a lot of misconceptions about this whole thing. I thought that “investing in the sharemarket is risky” (now, I know that anything can be risky if you don’t know what you are doing).
I thought being financially responsible meant not spending money, or spending as little money as possible (now I know, you can enjoy spending money, and be financially savvy at the same time).
I had to change my ways of thinking and feeling. I had to quit penny-pinching, and train myself to focus on the bigger, long-term (ie stop focusing on $10 problems, and start focusing on $100,000 problems).
I had to learn to trust my financial decisions, and not let “all the noise” throw me off – the doom-and-gloom headlines, the well-intentioned comments of friends and family, or the genuine promises of social media influencers.
Looking back, I feel like a different person than the 2010 version of me who wrote that post. I also hear this from my clients often. “I feel like I’m a completely different person”.
This surprises many people. You start the journey wanting to change your bank balance. But as you realize that there is this internal change that needs to happen to be able to create and maintain a new level of financial results in your life.
The version of you who is afraid to invest, is not the same (in mind and emotions) as the version that is a confident investor. The version of those who think that finances are complicated, is not the same as the version that manages their money easily.
So, the real question is not – what do I need to learn? Really – how quickly am I willing to let go of a version of myself that doesn’t align with my goals? When you don’t resist letting go, you’ll be able to accomplish your goals faster and easier.
Paridhi Jain is the founder of SkilledSmartwhich helps adults learn how to manage, save and invest money through financial education workshops and groups.
- The advice given in this article is purely natural and is not intended to influence readers’ decisions about investments or financial products. They should always seek professional advice that takes into account their personal circumstances before making any financial decisions.
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Paridhi Jain is the founder of the financial education platform, SkilledSmart, which has helped hundreds of adults gain financial confidence by teaching them effective ways to manage, save and invest their money.From our partners
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