3 Life-Changing Money Lessons I Learned as a Financial Planner

In the last ten years working as a financial planner, I've seen countless financial choices play out over time. I’ve learned what helps people thrive and what keeps them stuck.

It’s not always about the numbers on a spreadsheet. Often, the most important lessons are the ones we learn about ourselves. In this guide, I will share the top three money lessons everyone should know sooner rather than later, so you can apply them and make better financial decisions right away.

Disclaimer: This information is for educational purposes only and is not financial or life advice. Please do your own research and seek professional advice if needed.

Lesson 1: Money is an Ingredient, Not the Meal

This first lesson is the most fundamental, yet it’s also the most overlooked.

In her book The Top Five Regrets of the Dying, Bronnie Ware reflects on the regrets shared by those near the end of life. Among them are wishes to have spent more time with loved ones, to have lived true to themselves, and to have allowed themselves to be happier.

Money never made the list.

Yet so many of us spend our lives optimising for more money, believing it will automatically bring happiness. But there is no automatic conversion. True wealth lies in a life rich with meaningful experiences and connections, not just in bank balances.

Creating that kind of life is like a chef crafting the perfect meal. Money is just one of the essential ingredients. Health and time are also key parts of the recipe. But we all know that ingredients, no matter how abundant, don't cook themselves. Just as a chef needs a vision and skill to bring flavours together, we need purpose and creativity to shape our lives.

Focusing solely on accumulating one ingredient like money misses the point. It's like gathering endless salt and expecting a masterpiece. So, prioritise your health, recognise when you have enough money, and know that at some point, it's okay to leave money on the table to buy back more of your time.

Lesson 2: Your Goals Have an Expiry Date

This isn't just about setting a deadline for your goals. It's about realising that, like delicate flowers needing the right conditions to bloom, our goals also need their own set of conditions to be realised. Think about money, personal responsibilities, free time, and your physical and mental health. Each goal requires a unique mix of these factors to succeed.

I learned this the hard way. In my early 30s, I spent months planning a long-distance trek from France to Spain—a dream at the top of my bucket list. But life happened. Work commitments, the COVID pandemic, a new baby, and an unexpected back issue changed everything. When I look at that plan now, I know that my chance to take that walk—at least as I had imagined it—has passed.

Certain experiences can only be truly enjoyed at a particular phase of your life. Instead of a single bucket list, consider dividing your life into chapters and deciding which key experiences you want to have in each.

• Your 20s: This is the time for adventures like backpacking through Europe, running marathons, or starting a new career or business. You often have fewer responsibilities, excellent health, and plenty of time to recover from setbacks.
• The Family Years: Once you have children and a mortgage, priorities shift. Time becomes precious. Travel plans might lean more towards comfortable, family-friendly trips rather than extreme hikes.
• Your 40s and 50s: You might be at the peak of your career with more financial resources, but less free time. Your health is still good, but not quite the same as it was in your 20s.
• Your 60s and Beyond: With retirement on the horizon, you may have more time and money than ever before. However, travel plans will need to be adjusted to suit your physical health and energy levels.

Each phase of life offers unique opportunities. Don’t let regrets build up, because certain goals won’t wait around forever.

Lesson 3: Focus on Production, Not Just Consumption

This final lesson is one I wish received more attention, especially for the younger generation.

Money comes into your life, and it leaves. You can view this as production versus consumption. Generally, money enters your life because you produce some form of value, often through a job or a business. Money leaves when you consume, whether it's on a house, a car, or a Netflix subscription.

Popular advice in the personal finance world often focuses on the consumption side: live below your means, save diligently, and invest for passive income. These are excellent strategies. However, there is an often-overlooked side of the equation: the active production of money.

In your 20s and 30s, you should focus on income growth rather than extreme frugality. You should invest in your human capital, not just your financial capital. Your experience, skills, and knowledge are active assets that will compound far more than a passive portfolio ever could in your early years.

For a university graduate earning $60,000, saving even 10% of their income ($6,000) requires significant sacrifices in social activities and experiences. Yes, that $6,000 could be invested. But imagine if, instead, that person focused on developing their skills, expanding their knowledge, and broadening their horizons. By their 30s, these efforts could open countless opportunities, potentially leading to a far greater increase in income than that original investment could have produced.

Investing in yourself fuels the production of value, which, in turn, drives the production of money. In this digital age, it has never been easier to produce massive value at scale. Think big—about how you can 10x, 100x, or even 1000x the value you bring to the world. When your value goes up, the money will naturally follow.