A Finance Lesson for Every Passport Stamp

Mar 13

Hey everyone!

Kimberly here, the Founder of Beworth Finance, where we help you to spend less time worrying about money, and more time on the things that matter to you most. For me, a lot of that free time is spent traveling.

Yes, even back when I was broke.

A little secret: sometimes I travel for work, which is free. But I also take 1-2 big trips every year on my own dime. I don’t spend much money on expensive clothes or events, but show me a cheap flight to Europe and I’m there.

The real secret: My financial plan is designed to set money aside, every month, to a separate high-yield savings account. That means I make about 220x more interest (not a typo) than your standard big-bank rate of .01%. My accounts are set up to automatically transfer money to that account once a month, so I don’t even think about it, and when I do travel (and spend money), I simply pay myself back. Like magic — that you plan for.

The bottom line is, your finances are all about priorities that can (and should!) include the fun stuff too. I’ve always dreamed of traveling the world, so I made it a priority. What I didn’t expect, is that the places I visit would offer me some financial advice in return.

In this article, I draw some similarities between my travels and your personal finances. I hope it’s a fun read, and inspires you to start setting some financial goals of your own!

Country 1. Tanzania

"Hakuna matata." means “No worries.” in Swahili. It’s also the value of your financial plan.

If you thought, “Hukuna matata" was just a random saying from the Lion King, rest assured you’re not alone. The first time someone said it to me, I was in an elevator in Arusha, Tanzania. Disney fooled us all folks, the sayings are real! For the remainder of my trip, I would hear it at least once a day. But my favorite part of the trip was when I told a driver that story, and showed him the Lion King clip on YouTube. He had never seen it before; “IT’S FOR KIDS!” he cried in laughter. Best part of my trip, hands down.

Who knew “No worries” could bring so much joy? (Disney. Disney knew.)

In a way, Beworth Finance is wishing you, “Hakuna matata”, too. The value of a financial plan isn’t just knowing where your money is going, or how it will grow — it’s having peace of mind. Dealing with money and figuring out your finances can be stressful, and although a financial plan may take some initial effort to put together, you save yourself a lot of stress in the long run, by knowing where your money will take you next.

So “Hakuna matata", #FinLit readers! Wishing you no (financial) worries, for the rest of your days.

Country 2. Peru

Many small steps will conquer a mountain: the Machu Picchu approach to paying off debt.

In 2014 I traveled to Peru to visit Machu Picchu. The trip was incredible and I still dream about the ceviche. ALL. THE. TIME.

Anyway, although I had seen pictures of Machu Picchu before, nothing really prepares you for arriving at the site. Fifteenth century ruins and cliffs seem to jut out of thin air, amongst mountain after mountain. Now, I like to think of myself as pretty fit. I have good genes, I work out twice a week — I can hang. But I was seriously intimidated! Everyone had hiking boots while I was kicking it in sneakers, there were no handrails of ANY kind, and the top of each hike (there are two) was LITERALLY further than my eyes could see.

But you know what? I did it :)

Slowly but surely, and with the encouragement of my bestie (hi, Lauren!), I literally climbed a mountain. Amazing.

The lesson for this passport stamp is start slow, but go hard. To someone that may have $10,000 or $100,000 in debt, paying it off can seem completely impossible. After all, there are plenty of people that have even more debt than the make in an entire year. I used to be one of them, but I promise, you can do it. Just like climbing up a bunch of Mayan ruins, starting small is OK, as long as you keep going. Strive to make your minimum payments, then put any extra money on the debt with the highest interest rate first (this will save you the most money over time). Just don’t let the amount of your debt, keep you from tackling it. It can take a while, but you will get there eventually.

Country 3. Vietnam

Forgiveness is key. Don’t let your financial past stand in the way of your future.

Disclaimer: this story gets a little deep, but it’s one of my favorites. I promise you can handle it.

In 2009 I went to Ho Chi Minh City, Vietnam, and my father was a little concerned about how he thought I might be treated there as an American. I knew his concern stemmed from being part of the generation that lived through the Vietnam War. But I was never part of that generation, so I went. It has become one of my favorite places to visit.

In the middle of my trip, I visit a temple to learn more about a religion established in Vietnam, called Caodaoism. I’m told it is a blend of five different belief systems — Buddhism, Christianity, Taoism, Confucianism and Islam — and although I’m not very religious, I am curious by nature.

Inside the "Holy See" temple in Tây Ninh, Vietnam.

At the temple, I meet an older Vietnamese man who also lived through the Vietnam War, and shared with me some advice.* He explained, that despite the war and how people (like his or my family) may feel about it, that you need to forgive others and move forward. Having visited the Vietnam War Museum earlier that week, I was shocked. Till this day, I remain impressed with the man’s perspective, and his simple view on such an emotionally-charged topic.

In regards to your finances, the lesson here is don’t let the past stay in the way of your future. Forgive yourself. Particularly when it comes to debt, many people are so scared, or feel so guilty about the choices they’ve made, that they either a) avoid looking at their finances completely, or b) get overwhelmed when trying to fix them. Instead of avoiding or being in denial about your debt, accept it for what it is, account for it in your financial plan, and keep moving forward.

*Dear Vietnamese man, I am sorry I do not remember your name, but your wisdom and generosity has stayed with me till this day.

Country 4. Trinidad and Tobago

Be careful who you swim with. The dangers of lending money to family or friends.

In 2014 I traveled to Tobago for a wedding, and in addition to it being one hell of a party, the bride and groom had also invited an awesome group of people. So one day, a bunch of us decide to go scuba diving. I had been snorkeling before, but never scuba diving, and let me tell you — it is another world down there in the ocean! The first dive goes great, and I’m ready for more. About half way through my second dive, however, my scuba instructor directs my attention to my right. Much to my surprise, swimming about 20 feet away was a GIANT Moray eel! The most scary, disgusting, green thing I have ever seen.

FYI, a Moray looks like this:

*Credit: George Grall, National Aquarium.*

It’s freaking gross.

So of course, it opens its mouth right at me. I freaked out. My instructor thought all of this was hilarious… but ultimately I survived the encounter.

The lesson here is, be careful who you swim with, particularly in murky waters. I know so many people that borrow from or lend money to family or friends that they don’t trust, or who don’t have stable finances themselves. Borrowing from friends or family does nothing to improve your credit score, and can strain or ruin a relationship if things go south. And lending money? Forget it. Is your cousin’s friend ever really going to pay you back? How do you know that friend isn’t really just lending the money to his friend, in Las Vegas, who loves to play poker? Let’s get real — you don’t know. You have no idea whether there will be a giant, metaphorically-sized eel waiting for you, until you actually jump in that water.

Unless you’re really stranded for cash, Beworth Finance strongly cautions you against borrowing or lending money to family or friends. To avoid being in that position, we advise you to build up sufficient emergency savings (about 4-6 months worth), and contribute monthly to a separate account for other larger, non-monthly expenses (just like my vacation fund). In the event you really do need cash quick, really need it, we encourage you to speak with a financial institution. They can help you to evaluate what type of credit may work best for you given your current situation. And if you still prefer to borrow from or lend to family or friends, establish a contract, with a deadline for final payment (don’t laugh, just do it, and thank me later).

Country 5. Nepal

Assess your risk before jumping off a cliff. What you should consider before investing.

Back in grad school, I had the opportunity (read: I took on student debt) to conduct research for two months in Kathmandu, Nepal. The topic of my research isn’t as cool, as the fact as my mom, who had never been to Asia (or Europe, or Africa) joined me for a week at the end of my trip. Since I knew the chaos of Kathmandu would be a bit overwhelming for her, I arranged for us to go to a yoga retreat in Pokhara. Pokhara is a beautiful lake town, surrounded by mountains, which many people know for the Annapurna Circuit.

Sounds nice, right? My mom thought so too. Until I told her we were going to jump off a cliff. For real.

Now, I am a bit of a thrill seeker. Bungee jumping, sky diving, you name it. My mother? My mother had never been to Asia and would probably find South Carolina pretty adventurous (who doesn’t love Charleston?). So like mother, like daughter, we sometimes are not.

So can you believe I actually got her to do it?! MY MOTHER, got to the top of that mountain, saw me run off the cliff — they literally make you do that — and when her instructor told her, “Just don’t stop running”, she ran right off the edge! Flew like a champ!

Now, it may sound like my mom just said, “IDGAF!" and jumped right off the side of a mountain, but did she completely throw caution to the wind? No, she didn’t. Like you should do when investing, she first assessed her tolerance for risk. By watching me go first, she was better prepared to determine whether she was willing to make that jump herself. Secondly, she had a professional paraglider guiding her every step of the way. Both of these — knowing your risk tolerance, and having the right information for guidance, are extremely important when it comes to investing. Want to know more? We’ll cover both in future #FinLit articles and courses launching later this year.

Oh, and here’s a picture of my badass mom.

I hope you enjoyed the first article from #FinLit’s From the Founder series! Want to learn more about some of the info we covered, like financial planning or investing for beginners? Subscribe at the bottom of any webpage and we’ll notify you when the courses go live!

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