Okay, this story is really personal. It hits different when you are authentic and share what has happened in real life.
It was September 2018, and money held no value to me other than its utilitarian purpose - helping to buy things or spend on things. My shopping to groceries or for that matter anything - I got whatever I wanted and I paid for whatever it costed. No looking for discounts, no looking at value for spending that dollar. I want it, I’m getting paid and I could afford it and guess what - I bought it. For me, money was just a tool to make ends meet. I had no vision, no long term plan, no consideration for kids schools into the future, no idea of what it could do, or heck forget about how to make every single dollar work hard. Earning Money, Saving Money and Investing Money are completely three different skills. And I wasn’t good at any of those.
You could earn more and spend all of it. Or you could save money like a hoarder (my mom is a real life example). I will write more about this in a separate blog. Or invest in wrong asset types or riskier asset classes without knowing consequences.
For us to be financially savvy - we need to have and understanding on all three aspects of it to earn, save and to invest.
Make every dollar of your money work hard like an employee, just as Robert Kiyosaki describes in Rich Dad Poor Dad.
Coming back to my story, I was a naïve corporate employee, working as hard as I could, believing that my managers and the organisation I worked for had my best interests at heart. I thought that if I worked hard and long enough, my true needs and wishes would be taken care of. I placed my trust in the company, convinced that they had my financial well-being in mind.
But then, reality hit. The promotions I was long due for never came through. After years of hard slog, not to mention how much my wife also had to accommodate with taking care of kids, cooking for the family while me prioritising work over family for years. After a while I did finally get the promotion that I was long due. The excitement of being promoted was gone. It hits different when you get it at the right time, it just becomes a normalcy when you get it after a long due. But in this case - I got the promotion and finally when I received the letter congratulating for my promotion which I was eagerly waiting for a while - I was shocked and felt deceived to note that it came with extra responsibilities but with zero dollar pay increase. I have already been performing at or above that level of my role and to receive a letter of promotion and to also note that there is no change in pay was devastating. It was deceiving. My world turned upside down on me all the hard work, toils were fogging me to be able to think clearly.
One thing led to another, and after a series of events, I found myself questioning everything - who I was entrusting my financial power to, my morals, the value system guiding my financial future. And deep down, I had this nagging feeling: Am I actually doing okay financially?
As an immigrant in this country with no fall back option to rely on - I had no choice - but to only take this situation more seriously to help make it better.
If you could resonate to any of it - I would encourage you to ask these questions and assess your financial well-being too. Below is what I’d encourage doing - as this is what I resorted on after multiple trials and failures - this is not a complete guide - but gives you an idea of what you could consider as a step forward.
How to know where you stand in your Financial Well-being?
If you’re feeling uncertain about your financial health, here are some questions to help you assess where you stand:
1. Do you know your net worth?
Add up everything you own (savings, investments, property) and subtract everything you owe (loans, credit card debt). Is the number growing over time?
Do you need a template that I’ve custom built based on multiple trial and error which I use every month to track my net worth ? Download and make use of it. If you need help with it - reach out and I’m more than happy to help you. There is nothing more fulfilling at this point in my life than helping someone advance financially.
2. Do you have a plan for emergencies?
If an unexpected expense - like a car repair or medical bill - came up, could you cover it without stress?
3. Are you saving or just spending what’s left?
Do you set aside money for the future first, or do you just save whatever is left after expenses?
Invest / Save first, spend after saving or investing.
Highly encourage reading the book Richest Man in Babylon - this is a small book. But gives enough wisdom about saving money.
4. How do you feel about your financial future?
Do you feel in control, or does thinking about money stress you out?
Also engage with your partner in this conversation.
5. Are you on track for your financial goals?
Whether it’s homeownership, travel, or early retirement, do you have a clear path to get there and how does it look like?
6. Are you making your money work for you?
Are you investing, building wealth, or just keeping money in a low-interest savings account?
Are you sufficiently diversified?
Are you just chasing what’s currently in hype. Right now GOLD is going berserk and people can’t stop talking about it. If you are continuously chasing for what’s shiny - then the reality is that you’d probably going to “buy high and sell low” and you’d resent and be out of action / game for a long time.
Don’t get caught up in the hype!
7. Do you know what’s coming in and going out?
Can you confidently say where your money goes each month, or do you often wonder where it all disappeared?
I realised I didn’t have solid answers to most of these questions.
I did feel anxious, overwhelmed, and didn’t have answer to most of these questions. Was worried about bringing this with my wife as this would cause more stress on to her. The constant voice in the back of my head was always self critical and doubting but I didn’t take any action for a long time.
I genuinely want the best for you through these writings. My goal isn’t to make you anxious, overwhelmed, or feel out of control. Instead, see this as an opportunity - a wake-up call. Over the next few weeks, reflect on these questions, take meaningful action, start tracking your expenses, review your superannuation, and set small financial goals. As you do, the fog will begin to lift. And here’s the best part - every small step you take today will benefit your future self, who will thank you for it. Don’t look back with regret, wishing you had taken control of your finances sooner. The time to start is now.
Where do you stand?
If you don’t know, that’s okay.
The first step is asking the right questions.
The second step? Taking action.
What’s one thing you are going to do today to improve your financial clarity?
I recommend as a first step, taking quizzes to see where you are:
Commonwealth Bank’s Financial Wellbeing Survey: Link
ANZ’s Financial Wellbeing Survey: Link
Wishing you the best with financial wellness today, tomorrow and forever!