I have indeed made financial mistakes.

I am passionate about what I do because of that. I am familiar with the struggle of living paycheck to paycheck, and I now understand how to fix it. I enjoy helping people in taking charge of their finances.

Twelve years ago, I vividly remember the day I purchased my first home. I had a decent job and sold my ute to raise the 20% down payment (back when you could do these things..). Before paying $800 on more convenient transportation, I walked to work for six weeks. Thus far, all sound decisions. In addition to the amount of oil this automobile leaked,

The wheels eventually came off. (My habits, not the car!)

As a homeowner, credit became suddenly available to me (it seemed to be a thing at the time-lots of credit offered). Since I’ve been working hard, I reasoned, “I deserve some pleasant stuff.”

I thus purchased a new Harley… Then another modern ute follows. Then, on top of a modest mortgage, the modest repayments of roughly $100 each every week caused me to feel the pain…

During the crisis, I realised my financial mistake.

I created a budget for the first time since living off of my student salary. I calculated what it would cost me to live my current lifestyle as me. I searched through bank statements to find the real figures. Not the nonsense you write down on a piece of paper while sitting at the kitchen table contemplating bills. I was totally confused.

How was it possible that I was overspending? I had no debt from credit cards. You are living paycheck to paycheck and don’t have any meaningful savings. Something didn’t seem right. It then did. One month of bills was particularly unequal. Every registration, every insurance policy, and every rate. I was lost.

Thankfully, I had completed the budget the previous month and had determined the impending storm in time to sell the ute. I had to swallow my pride and sell certain possessions in order to stop living over my means. Yet, I was fortunate to be in a position to do so. I didn’t require more than one car. I had gained insight into debt.

What is the purpose of all this financial planning?

While I think their advice is relatively simplistic now, it was timely information that I needed to start saving money and keeping an emergency fund on hand. I became interested in financial planning and started reading books like “Rich Dad, Poor Dad,” “Barefoot Investor,” etc.

For “just in case”… And trust me, there have been a few “cases” over the years involving things like hot water systems, auto repairs, and insurance excesses. Knowing that you have a small sum of money saved up in your bank account provides you a great deal of peace of mind because things will happen, and they will. Moreover, you can save money by self-insuring a little bit with greater excesses (I run $1000 on house/contents, any less I’ll just take care of it).

I’m not flawless. I still purchase certain unnecessary items (let’s not speak about motorcycles), but I also have a spending account that I am free to use anyway I like without feeling guilty (I’m not against living life to the fullest!). In order to make sure I’m still on pace to meet my financial objectives, I also have additional accounts (building an investment property portfolio, managing an investment portfolio, super contributions, reducing owner-occupied house debt, travelling). It’s necessary to organise your banking system, as well as your spending and saving habits.

Well, I thought of something different, I’d tell you all a bit about me and my own financial journey.

Cheers, Rob.

This story is also published here on medium.com