Everyone loves a success story. Entrepreneurs doubling revenues, traders timing the market, investors celebrating high returns. But behind the wins are stories of losses—painful, often embarrassing, and rarely shared in public.
For Marion Evangelista, a Registered Financial Planner (RFP), those pitfalls matter just as much as the profits. In an interview with Financial Adviser PH, he explained:
“Profit inspires, but loss teaches. If you want to last in business or investing, you can’t just focus on the highs. You need to study the lows, too.”
The Pharmacy That Didn’t Make It
Evangelista recalls when his sister bought a pharmacy franchise in 2018. The capital: ₱800,000. The goal: earn at least ₱1,000 a day to break even. At first, things looked promising. Sales were steady, and optimism was high.
“Half a year later, the story changed,” Evangelista said. “Sales fell below quota, cash injections were made, but the bleeding didn’t stop. Eventually, the business closed.”
The lesson? Profit projections mean nothing without a plan for losses. “Cash flow is king. If you don’t control losses, even the best idea will collapse,” he explained.
The IPO That Burned Half the Investment
The same lesson echoed in Evangelista’s personal experience with an IPO. Fueled by hype and spare cash, he jumped in without thinking about an exit plan.
“I thought I’d sell once the price went up. But it went the other way,” he admitted. “I lost nearly half of my money because I had no stop-loss.”
That loss became a lifelong reminder: enthusiasm without discipline is a recipe for regret.
The Hidden Cost of Lending to Friends
It’s not just businesses and investments. Evangelista says many Filipinos fall into another silent pitfall—lending money to friends or family without boundaries.
“When someone close borrows, you feel guilty saying no,” he explained. “But when the same person borrows again without paying the first loan, that’s already a red flag.”
His advice is blunt: never lend more than you can afford to lose. “Treat it as part of your financial stop-loss. If you cross that line, you’re not just risking money—you’re risking relationships.”
Why Pitfalls Matter More Than Profits
For Evangelista, the mistake most people make is brushing off losses as bad luck, rather than analyzing them.
“Profits give you confidence, but pitfalls give you wisdom,” he said. “Every loss tells you something—about your strategy, your emotions, or your boundaries. If you ignore those lessons, you’ll repeat the same mistakes.”
He adds that contingency planning after a loss is just as critical as celebrating wins. “Don’t just lick your wounds. Redirect your capital, rethink your strategy, and keep moving,” he advised.
The Real Takeaway
At the end of the day, profits make headlines, but pitfalls build resilience. Evangelista believes Filipinos need to normalize talking about money mistakes, not just money wins.
“Everyone wants to post about success,” he said. “But the stories that really help others are the ones about failure. That’s where the lessons are.”
His reminder is clear:
“Profit gets you started, but pitfalls keep you grounded. If you embrace both, you’ll become a smarter entrepreneur, a wiser investor, and a more disciplined individual.”
