Research shows that the biggest financial regret for most people is not saving. People don’t save for many reasons; from the lack of financial literacy to underestimating the chances of a bad event happening to them.
Our love for immediate gratification complicates things further. According to Phil Town of Entrepreneur.com, the following are circumstances that may lead to financial regret.
Not having emergency money: It can make you scared. No job is assured. Town says you should always anticipate situations that can erase your sources of income such as layoffs, and medical bills.
It takes time to get off these predicaments and if you don’t have emergency funds, things will only be worse for you. He adds that you should have at least six months’ worth of income set aside as an emergency fund.
Not using an automatic saving system: Most people don’t save money systematically. They save whatever money is left after spending. Using this approach limits your ability to save enough money. You can avoid that by having a check off system that takes money out of your account before you lay hands on it.
Not having health insurance: It is highly recommended that you have good health insurance even if you are young and healthy. You never know when your health will fail you and in case you fall sick, medical expenses can wipe out your account.
Trying to keep up with the Joneses: Buying things to impress other people or fit in is something we are all victims of. Town notes that your self-worth is not wrapped up in the type of car you drive or the kind of house that you live in.
Not investing in financial education: Many people go through life without knowing how to invest. Most people only begin to show interest when nearing retirement and this can be stressful.
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