“If I can create the minimum of my plans and desires, there shall be no regrets.” – Bessie Coleman.
We all try to live a financially responsible life but that does not mean we always succeed. Mistakes are bound to happen along the way, and we tend to regret them in retrospect when we are much older, and if it is not too late we try to salvage the situation.
Instead of waiting until then to try and correct mistakes that happened in the past, why not start now? Why not try to avoid making those decisions today? The best way to do that is to look at what financial regrets most people have later in life and try to fix them today:-
- Not Planning For Retirement
Failing to plan for retirement is a huge regret for many individuals. There is nothing more depressing for someone close to retirement than realizing they cannot afford to retire comfortably. Others do not save enough to sustain their lifestyle in retirement. Unfortunately, they realize they don’t have enough after they retire or when it’s too late.
You should plan for retirement early when you are still young. Start small and continue increasing your retirement contributions as your income increases.
- Not Saving
Not having enough savings, especially emergency savings, is a common regret for all ages.
When an emergency hits, we are left wondering why we did not prepare for that eventuality. Missing great investment opportunities due to lack of savings also leaves us in regret. Speaking of investments…
- Not Investing
Investments create more income streams that come in handy during tough times, or in retirement. Who doesn’t want to have more income? The financial goal of most people is to become maximize their income and gain financial freedom. This will never happen if you do not invest.
It is good to have low-risk passive investments like savings. However, balance your portfolio with active investments like a business, a farm, or a consultancy. They complement each other as passive investments will protect you if the active investments do not work out and if they do, you could increase your savings even further.
- Depending on Debt
We all know how this ends. If you depend on debt to finance your lifestyle then you are almost always guaranteed to regret it, it is simply not sustainable. Unless your goal is to acquire income generating assets, live within your own means instead. Also, do not divert business loans for personal use.
- Starting Now
As with all things, better late than never. Get your finances in order today as this will enable you to salvage the opportunities which come your way daily.
Conclusion: We all make mistakes but should endeavor to learn from them. While it is good to learn from our mistakes, it is better to learn from others. Avoid these mistakes that most people only notice later in life and live your life free of regret.
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