A 2023 study by Forbes found that most adults regretted something about their financial decisions last year – and 68% experienced significant stress because of it.
As financial planning is all about minimizing stress in the present and maximizing confidence in your future, here are five common financial regrets to be aware of so you can be sure to avoid them in the future.
- Not Saving for Retirement- According to the study, about 20% of adults reported this as their biggest regret. It’s hard to set aside money for an event that could be well into the future when there are so many demands to address now. Our advice? Make saving a habit by setting up auto-contributions to your retirement account(s) every month. Even a little can go a long way!
- Procrastination – Over 15% of adults also reported regretting not taking advantage of higher interest rates last year. This is emblematic of a larger issue: Procrastinating on making financial decision – and as a result, not taking advantage of current economic/market conditions. This can be resolved by having an up-to-date financial plan that spells out exactly what you should do in specific situations.
- Taking on too Much Debt – 14.8% of adults said accumulating too much debt was their biggest financial regret. This is especially a problem during periods of high interest rates, which make it more expensive to pay debts off. If you do not have a financial plan that addresses your debt situation, we would be happy to help.
- Buying High/Selling Low – This regret isn’t covered in the Forbes study, but it’s one we see all the time when folks come into our office. When it comes to investing, everyone knows you want to “buy low and sell high” in order to maximize potential profit. But in the real world, this can be hard to do. Market volatility, confusing headlines, and FOMO (fear of missing out) can all prompt people to make short-term decisions with their portfolio based on snap judgements.
- Not teaching Kids About Finance – Were you taught the ins and outs of investing in school? How taxes work? The rules regarding retirement accounts? Probably not. It doesn’t seem like a pressing issue, and yet there are few better ways to set young people up for life. Our team is happy help you with providing financial education to your children at every stage of life – just ask!