Financial regrets

Financial regrets are more common than you might think.??

People have shared many regrets with me over the 30 years I have been a financial advisor.

These regrets vary widely from person to person, but I thought it would be helpful to list the most common ones.?I want to help people live an amazing life without harbouring regrets later in the life.

If you have any areas that need attention, so you don't experience these regrets towards the end of your life, act now!

Not protecting income

Once you are diagnosed with a severe or life-limiting illness, it is, of course, too late to take out cover. 1 in 2 people are diagnosed with cancer, so a big regret I deal with is people who are struggling?financially?because they cannot work due to illness. They have no income protection or critical illness to cover to provide a replacement income. This makes a very difficult time even more complicated and stressful. Many people believe income protection is a waste of money, but no one knows what is around the corner and having that protection gives you peace of mind.

Not saving enough for retirement.

This is one that I hear on a regular basis. So many people reach retirement age and regret that they didn't save enough for retirement. No one wants to experience financial stress in retirement. You want to be able to go on nice holidays, enjoy life and be able to relax without worrying about money. So make sure you invest in a private pension which will give you a much better lifestyle in retirement.?

Not investing

Failing to invest can mean missing out on potential growth and wealth-building opportunities. Some people regret not building an investment portfolio and diversifying their investments.

Accumulating debt

Again this is another common regret. Many people take on too much debt, whether it's credit card debt, student loans, or other loans, and this can lead to financial strain and regret. People often wish they had been more cautious with borrowing and spending.

Not having emergency funds.

Not having enough savings for emergencies can lead to financial hardship when unexpected expenses arise. Many regret not prioritising building an emergency fund earlier. When you are self-employed or a company director, this is even more important as you have no sick pay to fall back on.

Not budgeting or tracking spending.

Failing to budget or track spending can lead to overspending and financial instability. People often regret not being more disciplined with their finances and wish they had better control over their spending habits.

Not negotiating salary rises or price increases.

Many people regret not negotiating their salary increases, which can result in missed opportunities for increased income over time. As a business owner, do you review your pricing regularly?

Not planning for a significant expense.

Failing to plan for major expenses such as education or homeownership can lead to financial stress. So, work out your life plan and include the life goals that are important to you.?

Impulse buying

Making impulsive purchases without considering the long-term consequences can lead to regret over wasted money and missed opportunities for saving or investing.

Not prioritising experiences over material possessions

Some people regret spending too much on material possessions and not prioritising experiences or investments in personal growth and development.

Possessions and their appeal is short lived, but experiences can never be duplicated.

Not seeking financial advice.

Some regret not seeking professional financial advice earlier in life, which could have helped them make better financial decisions and plan for the future.

Financial regrets are highly personal and influenced by individual circumstances and values. But no one needs to live with financial regret because how you manage your money is in your hands.

Here is something really simple to consider:

A takeaway coffee is around ￡4.00 and if you have one every weekday, 48 weeks of the year for 20 years, you will have spent ￡19,200 on a daily coffee.

Now imagine if that money had been invested into a pension!

Make simple changes for big results.