Although my career is based on helping people financially, many individuals come to me with financial regrets because they wish they’d focused on their financial health a little earlier.
It’s never too late to get on the path to financial success – but it certainly isn’t a bad idea to avoid regrets beforehand.
I won’t keep you waiting – here are some of the common financial regrets you should avoid:
Wishing You’d Invested for Retirement Earlier
We’re all guilty of a little procrastination – but the effects are a lot more harmful when it comes to your golden years. Don’t be lulled into thinking you can just easily invest later. Every year you wait to invest means more missed growth and compound interest, and more money needed from your own wallet to make up for it.
There might appear to be more exciting ways to spend your excess cash, but you’ll be avoiding financial regrets by setting a little aside for retirement. Your wealth has decades to grow into a fortune, and that’s something to be thrilled about.
Credit Card Debt
Just because a lot of Americans have credit card debt, you shouldn’t be lulled into thinking it’s no big deal. The exorbitant interest rates on these cards means that you’ll essentially end up paying for an item three times over if you start missing payments.
You’re paying for your temporary happiness with your long-term financial health. That’s a pretty unfair trade to make. Instead of taking on debt, you should start looking at the long-term value of each dollar spent. You’ll start to realize that credit card debt is never something you should take on voluntarily.
Not Having an Emergency Fund
Nobody likes to think about emergencies. As a result, most people are completely sidelined financially when they happen. You can’t predict when you’ll have a flat tire or leaky roof, but you can avoid financial regret by building a safety net beforehand.
I recommend creating an emergency fund with eight months’ living expenses to handle those unexpected road bumps. Thanks to this fund, you’ll avoid forced debt or selling your investments at an inopportune time to cover the costs.
Are there any financial regrets you’ve avoided? I’d love to hear from you!
If you’d like to learn more about investing and wealth management, check out my firm, LexION Capital.
