If you actually scroll back and read my older posts, you would realize I have dedicated a few posts talking about my strategies in trading and what to invest in. Eventually, I stopped doing those as I pretty much couldn't follow my own advice and have made several mistakes which will be going to cost me months, maybe possibly years to recover from it. No, I'm not talking about the booster spree problem which I brought up.
The mistakes I made are not exactly big mistakes from the point that I'm still in a controlled environment; I did not take loans, I still get allowances and I still do save at times to ensure I have some savings my debts are basically for that month and will be wrote off once I get my allowance. However, I cannot keep up at this and it is for the fact that I am allowing myself to think like this, that's why I keep plunging myself in the red. Looking at how I manage my finances now, that is a true reflection on how I am going to manage my finances in the future if I don't change. By then, the outlook of real debts or inability to pay my utility or rent upkeep is definitely the real scare.
In short, I have to change. I have to change my thinking, my management methods in my finances. Looking beyond the album to see how my finances is managed is very crucial. In my earlier posts, I mentioned about the problem of myself cracking open packs and blowing out huge amounts at a single spree is the main factor. While I agree that is still a very important factor, my perception of my finances is also another issue to be addressed;
Personally, I have taken steps of my own to resolve this. But, it's going to take more than just stricter planning of budgets and allocation for savings that will see my financed stabilized. When are in the market, we tend to forget the many little things that are crucial in success of our endeavors. I personally have been through enough to tell myself, "Stop! Step back and look! You're doing it all wrong!"
I actually used to think that it's just my trading tactics and skill that will eventually earn me the money. For a while, I kept focused on reorganizing my inventory and finding means and ways to increase my sales reach. I actually even thought of going global!
While for the above is true to an extend, I implore you to reconsider your priorities when trading if you think that is the most important factor to see your earnings. It's never just the front-line that is the most important. It's always the things that we do behind the front-line that will determine the success of anything.
For this, the actual financial planning is the most important factor. In a silver lining, that is one expensive lesson I have learned for this year, and it's definitely the most important lesson.
- I sold my deck.
It's not really a mistake by choice; I gave up chasing Tarmogoyf and the deck will not be at its optimal without it. I had a really good Bant deck and I enjoyed playing the deck. It functions like a bruiser, dealing insane amount of damage per turns consistently with Geist of Saint Traft. The whole deck revolves around him. Until I needed Tarmogoyf to complete the deck. I wasn't sure at that time if I wanted to spend another $1000 just to get the cards I need to complete. and hence, I sold the deck for that price.
Looking back, sure it was a wise decision, having that I had extra the money. But, what I actually did with the money is not something I am comfortable to disclose here. No, it's nothing illegal, but it's just something that I look at myself and will forever kick myself for doing it. - I started a near-impossible collection
I was beyond my head when I decided to start a foil Planeswalker collection. The idea was to collect EVERY single Planeswalker with the different arts on it. So yes, I just needed 1 JTMS; yes, SDCC prints were also in the thought list. The justification was that foil Planeswalkers are more valued over the non-foiled ones as the former tends to see lesser reprints than the non-foiled ones. Actually when I think about it now, it does not make sense other than the scarcity of the foiled Planeswalkers. On the bright side, the reprints will mostly have alternate arts. The core set ones are the ones that will see the most reprints; I don't usually aim for those as priority. The expansions sets are the ones (Planeswalkers) that have the investment value.
However, I was over-confident. My budget constraints could not (never) support such a project. After 3 months of hunting and budgeting, I gave up with the idea. It's those kind of ideas that should never have been conceived in the first place.
Secondly, the rate which Planeswalkers are being introduced, I could not keep up and have to wait for their post-rotations to swipe them. As mentioned, due to budget constrains, I am unable to do so and will be lagging further behind with the change of the expansions' structures and rotation of the format. - There wasn't a clear goal in the end.
If you happen to read my older posts (around March - April) periods, you'll realize the content of the posts are very different. I started out the blog as a personal entry for each trade and wanted to evaluate if it was a good trade and/or how should I improve overall.
Also, the posts also covers my attempts to speculate cards and determine which I should buy for immediate resale, which are for investments. Clearly my own advice didn't work out well enough for me to see profits. As back to point 2, my budgeted and actual spending is way off from expected. (I'll post a full analysis when the rotation hits!) - In the rush for the dollar now, I gave up the thousands from future.
This is a very important lesson I have learnt in the past couple of months. While trying to figure a way to make money, it instead cost me time, money and if they are equated to my value as a stock share, I would have become a bear market stock.
In the rush to make a quick dollar profit here and there, I have lost myself to my own advice. Trying to rectify my own mistakes while giving advice to others or myself is just plain irony. In the mad rush in trying to get something, I plunged myself into the red for almost every month in the first half of the year. The saddest thing was that I gained nothing out from it. It's not like I spent hundreds on cards that actually will grow in value or of some usage for my decks. In the end, I actually wasted the money on nothing.
The mistakes I made are not exactly big mistakes from the point that I'm still in a controlled environment; I did not take loans, I still get allowances and I still do save at times to ensure I have some savings my debts are basically for that month and will be wrote off once I get my allowance. However, I cannot keep up at this and it is for the fact that I am allowing myself to think like this, that's why I keep plunging myself in the red. Looking at how I manage my finances now, that is a true reflection on how I am going to manage my finances in the future if I don't change. By then, the outlook of real debts or inability to pay my utility or rent upkeep is definitely the real scare.
In short, I have to change. I have to change my thinking, my management methods in my finances. Looking beyond the album to see how my finances is managed is very crucial. In my earlier posts, I mentioned about the problem of myself cracking open packs and blowing out huge amounts at a single spree is the main factor. While I agree that is still a very important factor, my perception of my finances is also another issue to be addressed;
- Money can be pooled from next month. I'll cover up the savings for this month by the next.
- I'll spend $X now, but with my budget being $Y, I'll roll over the savings to cover up the difference.
- That couple of pieces added up don't make a difference to my overall budgeted expenditure. My savings will cover them up.
Just looking by the 3 sentences above, what do you think? It's actually an infinite loop that results in no savings or actual finance management! First point denotes that I can take the money for next month as an advancement, which I'll use now. I'll reimburse the budgeted savings for this month from the next month's allowance. Second point denotes that I'll spend more than what I have allocated my budget for, which then my savings will cover up the difference. This way, I can write off the excess and still consider myself within budget. Third point states that the many little sums won't add up to overall expenditure. The savings will cover them up. So in the end, where exactly is my savings?
The point of the post is to point out to myself and as well as to other readers the importance of a strict financial/budget planning. Plan it out thoroughly make sure you stick to it. This is the biggest mistake that I have made while trying to pursue plans and investment strategies to grow my money. Like I mentioned in this article, and also, in this one; I have to close the taps. Back then, it was my attitude towards trading and spending. Looking back, the more pressing issue I should have resolved first was this one. It's not too late to resolve the issues, but as I said, this is one mistake that I will take months, possibly years to really get out of that immature thinking.
Personally, I have taken steps of my own to resolve this. But, it's going to take more than just stricter planning of budgets and allocation for savings that will see my financed stabilized. When are in the market, we tend to forget the many little things that are crucial in success of our endeavors. I personally have been through enough to tell myself, "Stop! Step back and look! You're doing it all wrong!"
I actually used to think that it's just my trading tactics and skill that will eventually earn me the money. For a while, I kept focused on reorganizing my inventory and finding means and ways to increase my sales reach. I actually even thought of going global!
While for the above is true to an extend, I implore you to reconsider your priorities when trading if you think that is the most important factor to see your earnings. It's never just the front-line that is the most important. It's always the things that we do behind the front-line that will determine the success of anything.
For this, the actual financial planning is the most important factor. In a silver lining, that is one expensive lesson I have learned for this year, and it's definitely the most important lesson.
No comments:
Post a Comment