Feb 5, 2015 Overcoming the Top Money Problems That Lead to Financial Regrets
Most people would love to have a do-over when it comes to how they have handled their money. A recent survey by Money-Rates cited by Personal Finance Cheat Sheet examined the average person’s financial regrets and fears. By making a conscious commitment to change financial habits and attitudes, it’s possible to overcome obstacles that get in the way of financial success and a higher net worth.
Overcoming paycheck dependence is one of the greatest financial challenges faced by the average working American without savings or investments. The Money-Rates survey revealed one-third of people say their greatest financial concern is being able to meet their primary expenses and bills such as rent or mortgage and car payment. By paying more than the minimum due on credit-card bills, it’s easy to knock out the debt. Some people find it helpful to set aside of percentage of their income each month for debt repayment.
Neglecting your future self
Instead of thinking about who they will be in the future, many people simply live for today. Overcoming instant gratification is easier when you visualize who you will be when you are older. A professional financial advisor can help you figure out how to invest money for retirement after you make it a priority. Experts say 31 percent of people who are not yet retired have no retirement savings. Whether you open a Roth IRA or start contributing to a company- sponsored retirement plan, you can’t neglect your future self.
Drowning in debt
Accumulating debt is the opposite of accumulating wealth. The Money-Rates survey found 41 percent of people said they would use an unexpected windfall of $10,000 to pay down their debt. Instead of waiting to invest your money until you have no remaining debt, simply get into the habit of saving while also paying down debt. Consider opening a Roth IRA since you can take out any money you contribute without having to pay any penalties. Just don’t touch any interest that accumulates from investments.
Whether you have the financial regrets listed above or ones of your own, speaking to a qualified financial advisor can be a step in the right direction. Don’t let the regrets of tomorrow be your future in retirement.
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Market Update: February 2023