What if I would have invested as per him,
What if I would have not bought that thing and many such what-ifs,
We all have regrets in our life, but none have quite the emotional sting of financial regrets. Money is now considered as the new happiness, as with more money you can do more things.
At the same time, we can also say that losing or missing the opportunity to earn more can also be regarded as one of the biggest regrets of all time.
Financial regrets are like the ex that your friends and family warned you about, but you hardly paid any heed to their warnings, and then later after 5-10 years, you think about it and say why I did this or that.
Today we are going to discuss these financial regrets that people have all their lives:
1. Not buying a home at the right time
- People always debate on whether it is good to buy a home to stay in a rented home. Sioukas says. “In a normal economy, if you don’t buy, you’re going to regret it.
- When you look back at how much you’ve spent on rent or how much the home you passed up has appreciated, that’s when you’re going to feel the pain.”
- In addition to lost money, there’s the intangible benefit of pride of ownership, and the relief of not having the looming fear of “What if the landlord raises the rent?” he says.
- How to Prevent: Our point is to try to buy a home when you can balance the EMI in your salary. Buying a real estate can always be considered as a hedge at the time of inflation.
2. Taking a huge Education loan
- Education cost is on the rise and parents cannot escape from this huge debt. If not planned well, this trap can make your life hell as at this stage you are also paying your home loan.
- How to Prevent: Plan your Child’s education loan well in advance and try to create a huge corpus.
3. Barriers to investing
- Many of us wait and think about what is the right time to invest money is it when you get your first job or after your marriage, they often regret this later when they feel that have invested very little and they could have invested more if they had planned it better.
- How to Prevent: Warren Buffett got into the investing game early. He bought his first stock, shares of Cities Service for $38 apiece at age 11.
- Following this popular Chinese saving “The best time to plant a tree was 20 years ago.
- The second best time is now.” so don’t wait and invest as early as possible.
4. The Credit Card Debt
- If you’ve got more than one credit card with outstanding balances, you may end up with big financial regrets. The credit card debt can so dangerous that it can soon destruct all your savings.
- How to Prevent: Recalling a discussion with one of his woman friends, who came for his advice on what to do with the money she had.
- Warren Buffett said, he asked her what she owes to her credit card. The interest rate the woman was paying on her credit card was around 18%, recalled Buffett.
- “I don’t know how to make 18%. If I owe money with 18% interest, the first thing I would do with any money I have is to pay it (credit card due).
- It’s gonna be way better than any investment idea I have got,” he said. To prevent the Credit Card Debt just avoid using them
5. Poor Investment Decisions
- If you’re unsure of where to invest your money, whether it’s paying off your mortgage, putting it into savings or choosing some investment funds, do not go blindly into any investment decision if you don’t fully understand what you’re doing.
- How to Prevent: Do some research on your own or consult a financial advisor.