THE MONEY DIARIES | VOL. 5 INVESTMENT

Hay términos elásticos o palabras que en el día a día van desafiando al diccionario. Por ejemplo, últimamente he escuchado cosas como “Literal me morí” y me da un pequeño susto. El día de hoy no es una clase sobre gramática, pero conocer ciertos términos financieros hará que puedas conciliar el sueño por las noches con más facilidad. INVERSIÓN: “velo como inversión”, “este vestido es una inversión”, “habrá que hacer una inversión en un nuevo iPhone”. El término “inversión” es tan temido como soñado, pero de lo que estoy seguro, es que más de una vez has comprado algo poniéndote como pretexto que es una inversión (el autoengaño es difícil de identificar, no te preocupes)./ There are elastic terms or words that are constantly challenging the dictionary. For example, lately I have heard things like “I literally died” and I get a bit scared. Today is not a grammar class, but knowing certain financial terms will make it easier for you to fall asleep at night. INVESTMENT: “see it as an investment”, “this dress is an investment”, “I’ll invest in a new iPhone”. The term “investment” is as feared as it is dreamed, but what I am sure of is that more than once you have bought something using the pretext “this purchase is an investment”  (self-deceive is difficult to identify, don’t worry).

IS THAT PURCHASE AN INVESTMENT ? 👀

*Siento que todo mundo hace disclaimers en internet, así que aquí va el mío: Estoy hablando de mis experiencias coleccionadas a lo largo de 28 años, no soy un gurú financiero de ninguna forma y sigo aprendiendo del tema./ *I feel like everyone makes disclaimers on the internet, so here’s mine: I’m talking about my experiences collected over 28 years, I’m not a financial guru in any way and I keep learning about it.

🔎 EL SIGNIFICADO / THE MEANING 🔎

De acuerdo a Economipedia (hay una Wikipedia para todos los temas de la vida), la palabra inversión es una actividad que consiste en dedicar recursos con el objetivo de obtener un beneficio./ According to Economipedia (there is a Wikipedia for all topics in life), the word investment is an activity that consists of dedicating resources with the aim of obtaining a profit.

Una vez que conocemos los términos, nos damos cuenta que las revistas y blogs de moda-belleza nos mienten un poquito cuando dicen que cierta prenda o producto es una inversión y que por eso no lo debes dejar escapar, es un término tan maleable que incluso a la hora de comprar, te convences de que necesitas otro abrigo negro y etiquetas esa adquisición como una “inversión”./ Once we know the terms, we realize that fashion-beauty magazines and blogs lie to us a little when they say that a certain garment or product is an investment and that is why you should not let it escape, it is a malleable term that even when it comes to buying, you convince yourself that you need another black coat and label that acquisition as an “investment.”

Una cosa es que ese abrigo de Prada te sea duradero y una buena compra, y otra que sea posible revender esa pieza para generar un beneficio económico más allá de su costo inicial, a menos que seas un visionario de la moda que sepa identificar piezas que se convertirán en un mito, como un bolso Birkin o unas zapatillas Jordan que se cotizan por las nubes en 2020. Lo mismo con productos de belleza, coches o piezas de decoración./ It is one thing for that Prada coat to be durable and a good buy, and another that it is possible to resell that piece to generate an economic profit beyond its initial cost, unless you are a fashion visionary who knows how to identify pieces that can become a myth, like a Birkin bag or a pair of Jordan shoes that have increased their values over the years. Same happens with beauty products, cars or decoration pieces.

La información es poder y si bien no tienes que tomar mil cursos sobre finanzas, ayuda mucho saber a donde va tu dinero, así como identificar en donde ponerlo para generar más ingresos en el futuro. Entre más consciente estés de tus hábitos (y de tus debilidades), te sentirás más confiado y te ahorrarás algunas noches de insomnio./ Information is power and although you don’t have to take a thousand courses on finance, it helps a lot to know where your money is going, as well as to identify where to put it to generate more income in the future. The more aware you are of your habits (and your weaknesses), the more confident you will feel and the less sleepless nights you’ll have thinking about this.

4 TIPS PARA INVERTIR (PARA PRINCIPIANTES) / 4 TIPS TO INVEST(FOR BEGINNERS)

🎯 1. Las necesidades y la meta / The necessities and the goal 🎯

Suena obvio, pero lo principal es identificar tus necesidades (por ejemplo de trabajo como freelancer, aunque también pueden ser personales y cada situación es distinta) y establecer una meta. Claro, el fin último es hacer dinero, pero los ingresos, la edad y otras circunstancias son diferentes para cada caso./ It sounds obvious, but the main thing is to identify your needs (for example work needs as a freelancer, although these needs can also be personal and each situation is different) and set a goal. Sure, the ultimate goal is to make money, but income, age, and other circumstances are different for each case.

En mi caso como diseñador e ilustrador freelancer, una inversión reciente fueron un iPad y un Apple Pen, para realizar más trabajos de ilustración por los que pueda cobrar hasta recuperar ese dinero gastado en un plazo previamente establecido y sobrepasar el costo inicial del producto. Siempre claro, estableciendo un plazo realista y entendiendo que dependiendo del gasto, los tiempos de espera pueden ser menos o más largos./ In my case as a freelancer designer and illustrator, a recent investment was an iPad and an Apple Pen, to do more illustration work for which I can charge until I recover that spent money in a previously established period and generate more money than the initial cost of the product. But of course, establishing a realistic deadline and understanding that depending on the expense, waiting times can be shorter or longer.

💰 2. No invertir dinero que necesitas para vivir / Don’t invest money you need for living 💰

Esto me recuerda al famoso consejo del que hablamos en el volumen 4 de Money Diaries  sobre dejar cierto porcentaje de tu sueldo para el ahorro, una cantidad sujeta a las necesidades de cada persona. No hay que hacer una inversión que suponga quitarnos dinero destinado a nuestros gastos vitales (alquiler o hipoteca, alimentación y servicios)./ This reminds me of the famous advice we talked about in Money Diaries Vol. 4  about leaving a certain percentage of your salary for savings, an amount subject to the needs of each person. There is no need to make an investment that involves taking money from our vital expenses (rent or mortgage, food and services).

Es cierto que algunos sacrificios deben ser hechos y se puede ajustar el presupuesto en otras categorías, pero jamás asignar demasiado dinero a inversiones para después crear un estrés extra en nuestra vida diaria. En pocas palabras invertir lo que se pueda pagar y no más./ It is true that some sacrifices must be made and the budget can be adjusted in other categories, but never allocate too much money to investments and then create extra stress in our daily lives. In short, invest what you can afford and no more.

 

💵 💵 💵 3. Invertir en aquello que te es familiar / Invest in what you are familiar 💵 💵 💵

Hacer una inversión con algún material de trabajo en un área que nos resulte familiar aumentará nuestra confianza para dar otros pasos importantes en el futuro./ Making an investment with some work material in an area that is familiar to us will increase our confidence to take other important steps in the future.

Soy de los que opina que en ocasiones hay que tirarse a la piscina, pero muchas inversiones pueden suponer un riesgo que se puede minimizar si tienes conocimiento de tu tema./ I am one of those who thinks that sometimes you have to jump into the pool and take the wheel, but many investments can pose a risk that can be minimized if you have knowledge of your subject.

💭 4. Cambiar la manera en la que pensamos sobre el dinero / Reshaping how you think about money 💭

Esto puede rayar en lo personal y los hábitos de cada persona son un mundo, pero me he dado cuenta que cambiar la narrativa negativa que tengo sobre el dinero me ha ayudado a sanar mi relación con este concepto que es encumbrado y satanizado al mismo tiempo. Todos tenemos pensamientos negativos sobre el dinero, pero poco a poco podemos hacer pequeños cambios e informarnos para hacer las paces con nuestra cuenta bancaria./ This can be a little more personal because the habits of every person are a whole different world, but I have found that changing the negative narrative I have about money has helped me heal my relationship with this concept that is lofty and demonized at the same time. We all have negative thoughts about money, but little by little we can make small changes and inform ourselves to have a better relationship with our bank account.

MORE FROM THE MONEY DIARIES SERIES:

💸 👛 👀 💵

VOL. 1 THE MONEY DIARIES + VOL. 2 THE UNIQUE HOLIDAY GIFTS EDITION + VOL. 3 HOW TO SKINCARE WHEN YOU’RE BROKE + VOL. 4 PRIORITIES + PLEASURES

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  • I love you “money diaries” series. I always learn something.
    I’m feeling guilty because I use the word “investment” quite a lot when I talk about clothes.
    But this is true this is probably to make me feel less guilty but I always promise myself to wear a piece a lot.
    I’m so glad I got an apple pen for Christmas it truely is the best thing right ?
    xx
    Margot
    https://troughthepasturesofthesky.com

    • thanks for checking it out this, Margot!

      I think finances are something we will never stop learning, there is always something new that can help us to improve our spending habits 🙂

      and yes, the apple pen is the best thing specially if you’re illustrating for digital purposes…. also for sketching as a fashion designer like you :)!

  • Such an interesting post Pablo!! So true that a lot of things we talk about are not truly investments, but just a way of arguing why we should buy it. But as you write, an investment can also be about investing in something that will generate more money/work/opportunities later. I like to think of investments more like clever purchasing than the idea that it has to pay back in a monetary way. Investing in a black tailored coat can be a good investment for other reasons more than it’s going to be good to re-sell it. For instance, maybe you’ll spend less money on other jackets if you have a really good coat that fits all your needs. And perhaps you’ll need to use less sweaters and clothes as the coat will be warm enough. And if you wear it for 10 years, the cpw will be really low. But yeah, it’s definitely interesting to think about traditional investment/non-traditional investment. But I’m all for investing in good education, skill training, just like for you and the new sketch pad!

    Love this Money diaries! Xx

    Mia

    • Hello Mia, thank you so much for your feedback, it is very valuable to me 🙂

      I totally get your point and I agree with the fact that you can save money if you plan your purchase in advance…. I have a Burberry coat and that purchase is gonna save a lot of money in the future if I compare it with all the coats that I could buy in a fast fashion store. This kind of purchases are the best in the long term 🙂

      Education is another great form of investment, this could feel like something intangible at the beginning, but this is a long term investment 🙂

      Best!

  • Excellent post! Investment is a word that has been corrupted by marketing. Nothing you purchase is guaranteed to increase in value, not even real estate. Tools for your trade can be a great investment in yourself and your ambitions, but the tools themselves do not appreciate in value. It is important that people do not fall prey to self-deception the way marketers hope they will.

    Michelle
    https://mybijoulifeonline.com

    • Hello Michelle, thank you so much for stopping by!

      Loved that you said “corrupted by marketing”, as usual many terms are manipulated overtime and we end up using them wrong haha.

  • Hey Pablo, how you doin? Hope that you’re back in full health right now!
    How’s going things in Spain? Here in Italy we’re half locked down (that’s because only some regions are under total lock down, other have many restrictons, other are pretty free -I’m in on one of those in the middle-), and the situation seems pretty worring again…

    Anyway, let’s talk of more pleasant things: how much wisdom in this post!
    Really, it’s non common that a so young person has all that competence in economic matters: I’m really amazed!
    I mean: I’ve studied economy at university (I also have a law degree, other than in fashion design), but all that book wisdom is almost nothing compared to you “street wisdom”! Much more useful!
    I always read very carefully these post, since I always found many interesting and very helpful tips!

    But about the topic of today; I really agree every single word here, starting from the corrupting of the word “investiment” itself.
    It’s so common that even I use often that word to justify some extra expense or if I buy something pretty expensive, while I pefectly know that those are money lost forever!^^
    But I feel less guilty when I have to justify my crazy expenses!
    The only field in what I think I really invest is beausty: I mean, if I buy a product, even if it is pretty expensive, I think that’s gonna save my money for future more and more expensive products, isn’t it?
    All, even if I know well that you can still live with an ugly skin!^^’
    This apart, I guess that work tools are always investiments, so should have precedence on any other!
    And the second investiments to me are those about health and education: I mean, maybe your gym membership could sound like a whim, but in the long run, how many money do you save in doctors, medieines and therapies?

    Very interesting post, dear friend!
    Take care and stay safe,
    XO
    S
    https://s-fashion-avenue.blogspot.com

    • Hello dear Silvia, as usual thank you for taking the time to leave such lovely messages ❤️

      Things are still pretty weird but at least we can go out the situation is not as mad as in France or in the UK…. I hope you’re family is doing good too!

      Well, you’re always have really interesting opinions about the money and it seems that your experiences have teached you a lot. That’s the best way to learn since you don’t forget about those lessons haha.

      And well…. I think more or less the same about beauty, it is like wearing a good sunscreen that can prevents buying more expensive stuff in the future to solve those problems…. same with healthy habits or with eating more natural stuff and avoid paying expensive treatments in the future…. that’s really wise!

  • These are good points! I agree, it’s okay to think of clothes or fashion pieces as investments – but if you turn around and buy another of what you just bought it wasn’t really an investment was it? haha! It was just another piece for your collection, rather than an investment in your style and wardrobe that means you can buy less pieces in future!

    Hope that you have a great weekend ahead 🙂

    • Hello Mica,

      Thank you so much for stopping by and for leaving a comment ❤️ You’re totally right, and in order to do that you should be really conscious about your style and the things you want for your closet.

      Best!

  • These are great money tips Pablo. I also appreciate that you write clearly. I don’t like the expression- I literally died either. I try not to terrorize others with my grammar knowledge and I sometimes speak in a more relaxed way myself but knowing grammar is important. There is an Italian teacher and writer that often repeats- chi scrive bene, pensa bene, meaning that it is important to write clearly and with a minimum of mistakes, this way we can think more clearly as well. It is also important to know the proper expressions for things. You were very sharp to notice that people often use the term ‘investment’ to justify their purchases and expenses. That way everything becomes an investment- from an expensive lipstick to a new coat. Naturally, a lipstick can be an investment but only if buying that lipstick or coat will really improve our quality of life or help us in our work life or some other aspect. Buying anything can be an investment but we have to be honest with ourselves and admit that not every purchase IS an investment just because it COULD be, doesn’t mean it IS. That’s what I think about it anyway. Buying new art supplies is always a great investment, especially if you actually work in the art field, like you do. BTW I love your illustrations and photography in this post. I always find the perfect inspiration on your blog!

    • Thanks for your wise words dear Ivana, can’t thank you enough that you always take the time to share your opinions about my posts with me… that means the world!

      Hahaha and I totally get your point! Sometimes the meaning of words tend to change with the time and that is normal, but using some terms in a bad way or making them elastic or to mean what we want can lead to confusion and the worst part is when you confuse financial terms or words that are related to taxes or similar duties.

      All the best and thanks for the compliments too!

  • Hey Fungi!
    Wonderful post about money again! Your illustration is so lovely, and it puts smile on my face. The last picture us so humorous 🙂 I love that lavender knit!!
    “The more aware you are of your habits…” is really really true. When I have no confidence, I can’t control myself. However your money series help me always, and I think that it help many people in the world! I am looking forward to see the next post<3

    akiko

    • Hello Akiko,

      As usual thank you so much for taking the time to visit and share your experiences with me. I think healthy finances is something that comes with the time and we’re always learning and improving.

      All the best Akiko!

  • Hello Pablo what an amazing post!! Please write more about investments! I find it so fascinating. And yes for sure it´s a big difference between actually generate an economic profit and just treat yourself with a luxury!
    I started to invest this year in some things for the first time and I really like it as you can already see a difference after a short time.
    Really want to learn more about it in the future 🙂
    have an amazing day,
    Tiziana
    http://www.tizianaolbrich.de

    • Hey Tiziana,

      Thank you so much for your comment, your feedback is always valuable to me and I love to hear stories from readers and friends about financial experiences.

      Stay safe !

  • I honestly really love this money diaries series of yours Fungi! It’s a great reminder to differentiate which items that really help us to be more productive in our work.

    I personally invest in fashion items that i would wear over and over again and also on my camera gear for work.
    Lately I’ve also been investing in courses like travel writing and also foreign language to deepen my knowledge.