The greatest financial mistake I ever made

I recently interviewed entrepreneur and financial coach Nita Menezes , who shares that the first investment she ever made was because she was promised a yellow hair dryer!

Nita still keeps that hair dryer as a reminder of how NOT to make money decisions. She refers to it as the “hair dryer that cost me INR 20,000!”

Like Nita, we've all made mistakes when it comes to our money. I was curious to know what drives us to make them, and how can we learn from them? As I began asking women these questions, many stories emerged around the intersection of money, relationships, work, parenting, and our agency to take life-altering decisions.

These stories inspired me to become part of communities that support women becoming financially fierce. I also launched my blog MsTress Of Moolah .

I am now excited to share that earlier this year, Nita, who is President of the WICCI Financial Literacy & Management Council , invited me to become a national council member.

As part of this journey, I launched an #Instalive series around Women & Money with Nita as my first guest .

Here are some takeaways from my conversation with Nita... ?

You can earn a lot and still be broke

Nita shared the story of an individual who earned INR 1 crore in a month, and stilled struggled to make ends meet, due to a lavish lifestyle and immense debt. They had not invested any of their earnings over the years, and were seeking another income hike to start doing so. This got me thinking – if someone earning just INR 50,000 a month invests 20 % every month for a number of years, and this individual and Mr 1 crore lost their jobs – who would be broke? Shudders.

An article in LiveMint identified not investing when you are young, as a top money mistake.

By getting started on this journey early on, you can pursue dreams much faster – launching a business, working independently, or only working at your leisure. The call of financial freedom can be answered earlier.

In relationships, get on the same page about financial values

A lot of conflict in relationships – intimate and otherwise – stems from ideological and fundamental differences in financial values. Nita shared the story of a couple who had very different ideas of what a good vacation looks like. The wife was all about value-for-money, while the husband wanted to focus on luxury. They would have so many clashes that the holiday would be emotionally exhausting.

Nita talks about the importance of having conversations where we discuss financial values in detail. It could be with intimate partners, family relationships, and in friendships. It's an inevitable conversation, that must be had for the cultivation of peace, trust and harmony in any relationship.

Get a financial coach, or advisor

If you are looking to get your financial ducks in a row, there are a number of ways to do it. According to Nita, some ways to do it include getting a financial coach, or hiring a financial advisor. If you are a DIY kinda person, then getting access to financial coaching is a great idea. Today, there are in number of high-quality training programs and resources available that equip you for financial badassery! This was also my own approach to getting savvy.

I enrolled for a women-led, women-focused financial skilling programme in 2018. It was life-altering, transformational, totally EPIC! Alternatively, you can get a credible financial advisor to help make these important decisions.

Learning money management skills can be a totally fun project ?

Nita shares that when her family goes for a holiday the excitement starts with planning the trip. An important aspect is budgeting. She has given her teenage son the reigns. A budget is identified and given to him, and he plays a key role in planning the entire trip with the budget as an important foundation. In my experience, this is not only a way for kids and teens to develop financial skills, this is a gentle way of cultivating the concept of sharing the load. In my own life, money management started in my early childhood with the introduction of a piggy bank.

#OpenMicWithMerrilDiniz soon returns with a new guest. The aim of this series is to shine a spotlight on the money and life journeys of women. We unlock experiences, learnings, and laugh about our mistakes. If you would like to be featured in the series, check out Episode 1 featuring Nita Menezes , and share your money story in the comments, or via DM.?

Amazing cover photo by Nick Noel on Unsplash