Abe Alba

Is the hard way the best way?

I started my professional life as a tour guide, because all I wanted to do when I graduated from high-school was travel—seeing the world. I ran the numbers and I thought it would take my whole life to save some money just to be able to go on a modest trip.

I entered the world of tourism by the narrowest door: no connections, no background, and no assets, except for what I thought—I thought—I knew about my own city and my B2 English. Shortly after, news about tax law reforms broke; I panicked. I had no financial literacy whatsoever, and I made truly stupid mistakes out of ignorance.

I had no clue how to value my work or how to calculate a price; when quoting I always forgot to add taxes and credit card commissions. Math had never been my thing. Accountants would speak, and I wouldn’t get a single word. I was smart enough to start inferring a few things here and there, though. Yet, I couldn’t really follow. At first, I had no time to. But then, one day, cash flow diminished drastically, and taxes started to suffocate me. I finally noticed how expensive my productivity could be. I also realized how expensive my income had been all along. All because of my ignorance.

Being absolutely broke after so much effort and sacrifice, demoralized me and left me exhausted. I starved in many ways, and all I could do was try to survive. I had to heal my relationship with math, and learn to speak the taxman’s language. I discovered I have a way with finance, and that I understand credit better than anyone close to me. It was like learning to make and handle fire. That rare element that I would come across accidentally once in a while became something I could finally understand.

I have paid for my financial literacy at a very high cost, but I’ve learned quite well. I admit that without the pain, I might have never done it so thoroughly. I had to suffer and fear debt so I could get to know it. I had to burn my cash trying to protect its value, so I could tell the importance of being liquid and the potential disaster of being stuck in your own assets. I had to finance assets with liabilities so I could understand that some financial gurus who sound comprehensible might lead you to confusion and misplaced certainties. I had to suffer from low or zero cash flow, so I could notice how merciless the banking system and tax institutions can be, and feel the urgency to understand their rules.

Is the hard way the best way? Sometimes it is the only way.

But how about you? How would you answer that question?

Abe Alba