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#Post#: 21--------------------------------------------------
Ten Financial Choices You Will Regret in 10 Years
By: IMPACT360 Date: November 28, 2014, 3:56 am
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A lot of people who worry about their financial
decisions often frame that worry on how it will
impact them in the present, and often forget that
the decisions will likely have consequences in the
future as well. While financial situations can always
change, it can pay off handsomely if you think
long-term rather than just short-term. Below you’ll
find a number of common financial choices many
end up regretting somewhere down the line:
Not Saving for Retirement
Many people don’t even think twice about saving
for retirement. Whether you believe retirement is
too far in the future to worry about or that you
don’t have enough money to sock away into a
401K or IRA, this is a mindset you need to
change. You should always contribute to a
retirement savings, even if it’s even a small
amount. Retirement will come before you know it
and you don’t want to be left scrambling for
money to keep yourself afloat once you’re unable
to work.
Not Having an Emergency Fund
You might be surprised by how many people don’t
save money for unexpected emergencies. Many of
us will experience some type of emergency in our
lifetime, whether it’s losing a job, having a health
issue, or having to quickly repair house or car
damage. Having some money set aside for
unexpected emergencies is something you
definitely need to do, and you’ll be mad at yourself
for not doing so when the time comes that you
need it.
Not Paying Down Debt
Accumulating, but not paying down, debt is
something that will haunt you well into the future.
While many people believe it’s difficult to pay off
debt, it’s something you need to steadily work
toward. Avoiding paying off debt will only make
more trouble down the line, and it’s something
you should take care of as soon as possible.
Spending Frivolously
A lot of us are guilty of spending frivolously every
so often, and while spending frivolously can be a
nice treat on occasion, it’s not something that
should be a habit. If you’re an impulsive shopper
or have a habit of throwing away money, you need
to learn to reign yourself in. There are better things
you could be doing with your money and you don’t
want ten years to pass and find yourself mourning
all the money you wasted on items you don’t even
remember.
Investing In Things You Don’t Understand
Some people feel pressured to invest in items
because they have people telling them that their
hard earned money is better off invested in the
stock market or certain assets. While investments
can be a great way to use your money, you should
never invest in something you don’t completely
understand. It’s not only a poor use of your
money, but it’ll likely end up bringing you a major
headache and regret.
Inability to Save Money
How often have you heard a friend say they’re just
incapable of saving money? Or maybe you’re that
person bemoaning your inability to save. Whatever
the case may be, there is almost always a way to
save money. Getting into the habit of saving a
portion of your paycheck each month is easier
than you may think. Never saving money or
excusing away your lack of savings by bad habits
will cause you a lot of grief ten years from now
when you realize you have nothing put aside.
Not Thinking You Need to Save
A lot of people are also guilty of not believing they
need to save money. Sometimes they believe
they’re still young and healthy enough that
medical bills or retirement isn’t an issue.
Sometimes people believe they don’t need to save
because there’s nothing they need to buy. This is
a dangerous mindset because it’ll only end up
leaving you without any savings or emergency fund
in the future. You should always start saving
money, even when you don’t think you have
anything worth saving for.
Going Into Debt For Something You Don’t Truly
Need
Sometimes we need to accrue debt for certain
major life purchases such as college or a
mortgage. However, you should never go into debt
for a major purchase that you don’t actually need.
For instance, buying that luxury car may seem like
a great idea at the time, but will you still think so
ten years from now when you’re still trying to pay
it off?
Not Thinking Long-Term
One of the major issues people face with their
finances is not thinking about the long term. Short
term goals, such as paying off a car or paying
down debt or saving up for a special trip, are
great, but you also need to think about how your
current financial situation will impact you in the
future.
Not Indulging Every Once in Awhile
While many people regret not saving enough or
spending too frivolously, it’s also important to
spend your money on things that are important to
you instead of hoarding it. We all need to indulge
every once in awhile and while being frugal is
great, you don’t want to miss out on rare
experiences that will last you a lifetime just to save
a little more than you are.
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