Career and Financial Lessons I learned in my 20s

When you're young and in your twenties, having financial freedom and purchasing power is really tempting! I was able to declare total independence by the time I was 24. But then, nobody warned me about quarter-life crisis so my world turned around (save that for another story). I'm proud of myself for my year 2013 for I have watched my life and finances diligently. But somehow, it made me reflect on my money mistakes and financial lessons that I learned in my twenties.

In random order, here are the top Career and Financial lessons that I remember and learned in my 20s and what I did about it:


Getting lured into Promos and Sale

I admit that I am such a huge fan of sale and buy-one-take-one promos that I ended up hoarding. Be it make up, books, etc. But no matter how cheap, if you don't get to use it, it is still considered a waste.

What I did:
I stayed away from Sales and Promos. I was actually tempted once, when I found myself at the make up counter with all these fabulous make up at 50% off. But then, I knew deep within me that I will not be using this everyday so I let it go. Also I shied myself  from my biggest indulgence, Booksales, and sometimes when you want something bad and desperate enough, the universe helps you. I cannot find my favorite authors anymore. Haha!

Read the rest of my career and financial shoulda-woulda-coulda after the jump!

Maintaining 3 credit cards.

I applied for an HSBC Red MasterCard when I was 20 years old and only working for 6 months. I got approved but with a small credit limit. A year later, they probably liked me and not only they gave me an upgrade, they also gave me another free HSBC Mabuhay Miles Visa Card this time. I felt so happy and important owning a Visa and a MasterCard. Then BPI bank called and said they would like to give me a free EDGE MasterCard. Again I felt happy that these banks trusts me, until all the annual fees came all at once!

What I did:
When I moved back, I cancelled my 2 HSBC credit cards because I no longer have work as a full-time graduate student, but I kept my EDGE MasterCard because the annual fee is amortized and manageable. It's the wisest decision I've made because not only the bank is a short ride from where I work, the annual fees are manageable. At the same time, I learned and was made aware of my credit card cut offs and finance charges that I spend according to necessity and schedule.

Another tip that I also learned from a Chinese friend is that you only charge something you can pay with cash to avoid getting yourself in constant debt.

Spending on shoes and gadgets instead of travel.

My closest friends and former colleagues in the BPO industry know that I love, love, shoes and I can actually run in 3 inch heels. I spent a lot of my money on shoes because I'm really lucky when buying shoes on sale. I did buy a few gadgets though like a digital camera, laptop, ipod and the latest cellular phones, but I really am a shoe fan. After moving back to south and donning a major life overhaul, I cannot even wear those heels and wedges anymore that my mom ended up giving them away.

But what I should have indulged more is travel because the experience is something that cannot be taken away from you. Looking back I wish I had gone to more surfing trips, taken more pictures, more beach trips, went on more adventures and explore other areas in the North area of the Philippines before moving back home.

What I did:
I now have cut back on buying shoes and have switched from heels to flats. Also, I have carefully planned, saved up and set a budget intended for travel for I don't want to be broke after taking a holiday. I have also preferred travel over going out for drinks and have altered my previous spending and started living not within, but below my means.

Strictly saving up for special occasions.

I did have a few things that I keep saving up for the special occasion. For example, my Salvatore Ferragamo perfume that I got for Christmas and rarely used it because I was saving up for a special occasions. I kept waiting for that special occasion til it got stale.  I learned that perfumes do expire and the lasting effect of the scent goes away easily after being stuck for a long time.

Buying things then saving it for special occasion is a waste because most often than not, you will never get to use them anyway. Examples are China, fancy plates, lipstick, make up, and even clothes, etc. Sometimes, when we are bound to saving it for special occasions, we never get to use them anymore until it goes stale. I read another story that one's grandmother kept storing and saving their fancy China and when she passed on, the grand kids played with the plates and smashed the plates by accident. They never got to enjoy it.

What I did:
I now only buy things that I will use immediately. If you stick to this rule, you will be surprised how much you can save actually. Regardless if it's buy one take one or on sale, if you're not going to frequently use it, it is considered waste.

Not thinking/buying investments.

The problem with being in early twenties is you think you have so much time and by the time you reach 26, it's like you're on a bullet train to 30 with slow metabolism.

My friend bought a pre-selling condo at 23 years old. Now at 30, married with a kid and lives in Singapore, his condo is making money by just existing (he's renting it out). My friend from graduate school bought insurance at 22 years old without influence from her parents or anyone and now a happily married woman with a kid, she's on her way to financial independence and security.

What I did:
I got myself a financial adviser and prepared for my retirement before I turned 30. Now I have another bill to pay for a long time but at least I know where it is going. Of course, do not just jump the gun, I did my research first about the companies and carefully screened 3 financial advisers before I settled with one. (Yes, so anal) It's my hard-earned money and I want to know where it is going. My tip for getting one: If the adviser can't laymanize or you don't understand what you're getting, don't buy. Simple as that. It helps to read on financial articles, books and have financially intelligent friends. (Thank you girlfriends, you know who you are!) I also did the list of pros and cons and arranged my payment options and screened it and customized it to my full convenience and advantage so I will be able to manage it.

P.S. If you need an appointment or recommendation or even just a consultation with a financial advisor, let me know by messaging me here.

Not investing in my identity capital.

I can remember how many times I went to a design school inquiring about formal lessons in photography and make up. I also thought of getting a Six Sigma training.  I always reach the part where it is in conflict with my work schedule ( I work at night during those times) that I ended up not doing anything, choosing sleep over what I wanted to do. I still wish I did it during my early twenties where I have a lot of energy going on inside me and should have focused on diverting my corporate job stress to working on my passion what I might want to be in the future.

What I did:
I resigned from my job at 26 to pursue a Masteral Degree. I was a full-time student for 3 semesters when I realized that I do not like not having a job. I got my degree before I turned 30 and have started a new career that I actually like (and what I have always wanted to do). I still have a long way to go and a lot to learn but it makes it worthwhile not having to hate Mondays when going back to work.

Getting a safe job

Two weeks before I graduated from college, I was already hired and will start in a few weeks, giving way to my graduation ceremony. I got the first safest, and paying job the moment I moved out of college. One time, a colleague who's 20 years my senior told  me: "You're young and talented, you are not supposed to be here. You should be enjoying and discovering your full potential while you're still idealistic."  You know what? She's right. I've always wanted to work in the magazine industry so I sent my resume but never followed up. After that, I went back to another safe-paying job again and did not pursue it.

What I did:
When I felt that I really am tired in my old industry, I finally applied for that job I've been eyeing while sticking to my decision to move back home and pursue graduate school. But they called me in the middle of the semester and I had to decline the job to make sure I will be getting my Masteral Degree in due time. Declining the dream job was worth it on so many levels.

Not taking a break

When I was 23, I kind of envied some of my agents who just resigned without a back up career, saying they just wanted to take a break. I told myself that I cannot afford it because I am already 23 and independent, but then I realized I should have taken a break to figure myself out. I have always wondered how can they afford it? My interior/industrial designer and wedding/events florist sister, Aprille Araguas, took a break from college to stay at home and help out in our family business. In between those times, she was also studying for her board exams and taking it slow and now, not only she has a career, she's been using her full potential both as an artist and a businesswoman.

What I did:
I resigned at 26 with a back up plan of studying again. I was jobless and living on my allowance from my dad. I thought my pride can't take it, having to live with my parents and abiding by their rules again, but it turned out fine. At some point, the rebellious 20 something in you will finally suck it up, retire and mature. Sometimes a break is really healthy because it gives you a clear idea who you are and what your values are and what you want to be.


I know I still have a lot of future boo-boos but the important thing is I learn from them. How about you?