If you read Part One, you already know how my 20s were filled with emotional spending, lifestyle inflation, and a growing debt pile. But what followed was a deeper, more confronting phase of my money journey — the part that pushed me into panic, denial, and eventually… a turning point.
Let’s pick up where we left off.
“You must gain control over your money or the lack of it will forever control you.” ― Dave Ramsey
Payday Panic: When Salary Isn’t Enough
For many of my colleagues, the 20th of each month brought joy — payday! For me, it was a harsh monthly reminder of my financial mess:
- And complete dependency on my sister
- LSL2,500 car loan
- LSL2,000 owed on clothing accounts
- Credit card minimum payments
- Zero savings
That growing sense of inadequacy became unbearable. I used my credit card to maintain a lifestyle I couldn’t afford — nights out, clothes, social events — just to keep up appearances. And then came the calls from debt collectors, unpaid debit orders, and rising bank charges.
This was no longer a phase. It was a full-blown financial crisis.
Mistake #4: No Emergency Savings
Then reality hit — hard.
One afternoon, while running errands in my car (the one I couldn’t afford), I had a flat tyre. I pulled over, confident I’d figure it out. But there was no spare. And no savings.
I needed LSL1,800 immediately to replace the tyres. I had NOTHING.
Working for a financial institution, I applied for a temporary overdraft to get out of the situation — repayable in three months at 7% interest. Problem solved? Not really. That “emergency solution” added another layer to my growing debt.
The real problem was my lack of planning.
Mistake #5: Too Much Debt, No Financial Plan
By this point, I had:
- A car loan
- A clothing account
- A credit card
- A temporary overdraft
- And zero savings
I was completely financially exposed. So I made a drastic decision: I used my 13th cheque and annual bonus to settle the overdraft and clothing account. It stung. But for the first time in years, I could breathe — even if just a little.
I wasn’t debt-free, but I was doing something. And that mattered.
Mistake #6: Not Investing for the Future
I had heard the saying, “Pay yourself first,” but I never practised it.
At the time, I had no investments:
- No unit trusts
- No fixed deposits
- No treasury bills
- No retirement planning outside of the company pension
I justified it by saying, “I’m broke. I’ll invest when I earn more.”
But I’ve learned the hard way: investing is a habit, not a salary level.
Had I started small — even LSL200/month — I would have built a cushion by now.
Mistake #7: Spending My Pension Payout
Of all the financial mistakes I made, this was the one that hurt the most, emotionally and financially. When I changed jobs, I received a pension payout of LSL50,000. I was deep in debt, so I used it to “clean up” my finances. I told myself I was resetting — starting fresh. But I wasn’t.
I was robbing my future self. That LSL50,000 could’ve grown exponentially through compound interest. But I used it to clear debts I had accumulated from emotional spending. I justified it by saying, “I’ll recover it. I’m still young.”
But the truth? I can’t get that money or lost time back.What I’ve Learned
These mistakes weren’t due to lack of knowledge — they were emotional decisions, made in moments of fear, shame, and pressure to keep up.
But I’ve done the inner work to understand that:
Financial literacy is emotional literacy
Debt is psychological — it reflects deeper habits, beliefs, and behaviours
Healing starts with honesty
Practical Takeaways
If any of this sounds familiar, start here:
- Build a small emergency fund – even LSL100/month counts.
- Start investing today – it doesn’t matter how little, just start.
- Preserve your pension – your future self is counting on it.
- Use bonuses wisely – don’t patch bad money habits; address them.
Rewriting My Money Story
Sharing this part of my story hasn’t been easy. It takes courage to admit financial failures, especially as a finance professional. But I believe in the power of transparency. And I hope my journey helps someone else avoid these same mistakes.
Today, as I move into a new decade of life, my finances are finally in order. I’m still learning, growing, and making better choices every day.
Most importantly, I’m using my story to educate, inspire, and uplift others — because financial recovery is possible.
Let’s Talk About It:
- What’s your biggest money regret?
- Have you ever cashed out your pension to cover lifestyle debt?
- Do you have an emergency fund?
Share your story in the comments or DM me. Let’s keep the conversation going.
