How I Lost £10,000 and What You Can Do To Avoid This

I’m sorry I’ve been a bit quiet on the blog and social media recently. This week especially has been a busy one for me with a holiday to organise and being in the middle of moving house too.  So I’m feeling pretty drained at the moment. That being said, writing on this blog is a wonderful break from all of that, where I can discuss with you some things that may inspire and teach you whatever it is you take away from it.

cima exams

So, you may be drawn to read this post via the title: How I lost £10,000 and what you can do to avoid this. A more appropriate title may be: How I missed out on £10,000 and what you can do to avoid this. Let me explain…

After looking back at my earnings from when I was studying, I can’t tell you how much I wish I could turn back time. Why? Because I made one huge mistake – one wrong move that if I had the power, I would go back and change. I would have started earlier.

Here’s the Breakdown

If I had studied earlier, stopped procrastinating and prepared better for the TOPCIMA exam, I would be £10k richer today.

Now, you may be thinking: How do you work that one out? Well, let me show you…

My first attempt at the T4 part b exam was in May 2010. Back then I had already been working as a management accountant for a number of years in London, earning a fairly decent wage. But I didn’t actually pass this final exam until May 2013! And I didn’t get my PER approved, and therefore my letters, until September 2013, as you can see below:

CIMA certificates

 

Now, let’s say I had already applied for T4 Part A after I finished Strategic level at the end of 2009 and had it approved a few weeks later. Let’s also assume I had passed T4 Part B at the first attempt in May 2010 and received the result by the beginning of July 2010. I’ve calculated that I would of been taking home a qualified accountants salary 39 months earlier, and would of earned at least £10k more over that period, even if I had stayed in the same role.

Going Even Further

There’s even more things here that are pretty sickening to think about. What if I had passed all my other exams first time and had qualified 4 or 5 years earlier? That is money “I missed out on” as well – because the trouble is, I can’t turn back time like I wish I could.

Bottom line, in order not to lose out (or miss out) on money that you could be putting into your pocket, you must get started as soon as you can and keep going.

The old saying holds true…time is money. A classic and similar example can be explained with investments and compound interest.

If you’re 25 years old, and you make £30,000/year and you contribute 10% each year to an investment plan that earns 9% interest, you’d have £1.2m in your account by the time you’re 65.

Investment_40_years

 

If you just wait 5 years (what’s 5 years going to do, right?), and contribute the same amount each year getting the same returns, you’d only have £767k by the time you’re 65. That’s well over £400k lost, just from starting 5 years later.

investment_35_years

 

Don’t Beat Yourself Up

You can’t beat yourself up thinking about these kinds of things. I’ve already beat myself up about it, and what I’ve learned is that you can’t change the past. Beating yourself up will only consume more time and energy.

The only thing you can, and should do, is make the best of the time you have now in front of you.

If you have an exam to study for and have yet to put a study plan together, do it.

If you feel overwhelmed by all the preparation you have to do before the exam, just focus on getting the next task done.

If you’re stuck, take action and ask an expert.

If you are thinking of spending money on mock exams or study aids to help you over the line, stop thinking – and start doing!

This theme applies for your practical experience too, the longer you leave your progression, the more money you lose out on.

How to Take These Thoughts into the Rest of This Year

What can you do for the rest of this year that will help you earn more money? Start your exam preparation earlier? Study more frequently? Seek expert tuition? Ask for that raise? Move jobs? Take a professional development course? It’s all up to you…

So if you’ve been procrastinating or lacking motivation, I want you to take bold action now and push through it. Remember, I’m here to help you every step of the way.

p.s. There’s more detailed exam tips and careers advice coming up next on the blog. Good times.

Comments welcome!

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