One of my favorite sayings is “after all, it’s just money.” While I may appear financially put-together, I’ve had more moments than I’d care to admit where that saying was my mantra. The most recent instance was when I ended up spending over $1,500 on a last-minute flight back to Europe because I missed out on a $150 deal. Did it sting? Absolutely! Especially since I try to avoid unnecessary spending and live in a place like Guatemala where $1,500 could cover a couple of months’ expenses. But still, it’s just money.
Unlike time, you can always earn more money. It might be a setback, but in a month or a year, you’ll likely be back where you started. Mistakes aside, money can solve many problems. Frustration with local politicians could be eased with a hefty check. Hiring help could make home life smoother. Money can buy comfort, like taking a cab when you’re too tired to ride the bus, or convenience, like enjoying pre-made snacks with friends instead of cooking.
Of course, indulging daily won’t help you build wealth, but treating yourself occasionally won’t cause a major financial downfall.
A few years back, I lost a lot of money trading online. Despite it being the biggest loss I’ve ever faced, it didn’t hurt as much as losing cash. Online, it’s just numbers dropping; you don’t feel the physical loss. It’s a bit like how I’d feel if my house lost 99% of its value—too big an amount to fully grasp. But what can you do? You have to move on. If you lose 50% of your $100 in trading, making that $50 back from the remaining $50 requires a 100% return, which is much harder, but not impossible.
While I care about making smart money choices and preserving my wealth, I’m less concerned about losing money because I know I can make it back. I’d rather live freely than let possessions take up mental space. This mindset means I have to replace items like my cellphone or passport about once a year.
A while ago, while traveling, a company sponsored a $2,000 video camera for me. My friend had the previous model, which he had bought himself. While hiking up a volcano, my backpack with his camera inside got stolen. I offered him my newer camera, thinking he’d be pleased, but he was upset. He had put a lot of effort into saving for his camera, and my offer didn’t solve that.
In my view, money can fix most problems, except for things like terminal health issues or bringing back loved ones. That’s why it’s vital to have savings, so when problems arise, you can handle them quickly and move on. I don’t mean to sound arrogant, but sometimes it’s better to let go of small money mistakes rather than agonizing over them for weeks. Your peace of mind is more valuable.
So, how long does it take you to recover from your financial mistakes?