It is human nature to have regrets about things in your life. Thoughts about those what might have been moments and the “What ifs”. Now narrow that focus to money not well spent and well, that’s even more bothersome. We recently came across an article in our weekly research about financial regrets and shared it, but after talking the other day about things we would have spent money on differently if we knew then what we know now, this subject deserves a closer look.
According to a May 17th 2016 Barkrate.com article written by Claes Bell, (definitely a worthwhile read), a survey of 1,000 Americans showed only 17 percent of them have no financial regrets. For everyone else, the regrets ranged from not saving for retirement early enough to not having an emergency fund or taking on too much credit card debt. Many of these things result from what occurs when life happens. At this point, the better question is, “What can be done about it now?”
If you look back, there are many purchases that we have been made that could considered questionable at best. From that purse and matching pair of shoes that currently collect dust in the closet to the outfit that was hot two years ago, but out of style today. What about the $399 video game system that the kids stopped playing a year after begging for it, or the $800 cell phone that you added onto your service bill, but is now two series behind. We won’t even mention that PDA you bought in the early 2000’s that was obsolete two years after it was created. So just like the 1,000 Americans surveyed, things we blew our money on back then, years later, you realize what you would have if it had been saved or invested.
Financial regrets are a behavior that can be managed, but going forward, you must be intentional with how you handle your money. It has been said that if you fail to plan, then you plan to fail. Having a budget or simple spending plan in place to better allocate your funds can alleviate or reduce the anxiety that surrounds financial regret. Making specific decisions about what to do with your money, whether saving or spending it, makes the difference and makes your financial decisions, good or bad, easier to justify now and later.
Founded in 2015, DNA Financial Services LLC has pledged to Educate, Empower and Equip the financial DNA of its’ clients now and for generations to come. The company offers a number of financial services designed to bridge the gap in wealth building education while aiding and advocating for the financial literacy of people from all walks of life.