FIVE THINGS TO KNOW ABOUT MONEY :: What I Learned After Losing $2 Million

By on August 11, 2015

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FINANCE :: As a 32-year-old investment advisor in Toronto during the 2001 technology boom, the dot.com suddenly burst and burst big.

I had been investing money conservatively for my clients – but started gambling with my own. I recognized money could be made from the huge volatility in the sector because the valuations being assigned to the companies were not rational. What the internet was, how it could generate revenue and what potential it had were beyond anyone’s comprehension.

I gambled. Trading options (a contract that gives a buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date), I took $20,000 and within three months had turned it into $2,000,000.

I lost it all over the course of 6 months by continuing to trade and averaging down on losses. The millions were made on Intel, lost on Nortel. I decided to trade on margin (ie: borrowing) as well which resulted in me going into debt.

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That experience was probably more valuable to me than the $2,000,000.00 I created out of thin air. I re-learned five essential things in my life about money. I also came to understand regret, and how looking backwards impeded my emotional and financial progress forward. Money has never been a main focus in my life because it is institutionalized; it is created by central banks and not the universe, though of course there are countless professionals in my industry doing wonderful work helping people financial plan.  I do recognize I have the ability to attract money into my life when I focus on abundance and not what I don’t have; as you attract into your life what you focus on.

Here are five things to know about money:

1. Life does not begin or end with money. When you are born, this thing called money has no relevance to you and when you are in your dying moment it will not either. Between those two points it is good to check in and ask how much relevance you are giving it.

2. Money is not permanent. In my life it ebbs and flows. I am not a big saver as I would rather spend and enjoy it, therefore I have to be aware of not overdoing it.

3. Money in itself does not bring happiness nor does the lack of it bring unhappiness. Happiness is created within oneself, not by tangible things.

4. Debt has become an unnecessary evil in our lives. Institutions live to find ways to make it necessary for you to borrow more. Getting out of the hole of debt is a difficult task. Debt causes you to be dependent and beholden to the institutions or people who provide you with debt.

5. Never worry about money because it just causes more problems in your life. Focus on love, happiness and joy; then money flows to you. If you instead only hope more money will make you happy you will just keep hoping. If you feel like you’re rich and abundant and prosperous, you will be.

– Bonnie Hughes was raised in Toronto’s Church & Wellesley village and now lives in London, England raising capital for junior resource companies at a boutique corporate finance firm.

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