Retirement Plan and other Financial Regrets
Financial regrets are common. But that doesn't mean its a good thing. And it's no surprise that financial mistakes heavily weighs on people who are experiencing it.
However, not all regrets are equal; some are worse and more harmful than others, and it takes years or even decades to recover or resolve the crisis, while others can be corrected if it will be dealt with earlier.
|1. Not saving for retirement earlier|
|2. Relying too heavily on credit cards|
|3. Not establishing a healthy emergency fund|
|4. Not paying credit card balances every month.|
Now, the damage of some of these can be more long-term than others. Averagely, survey respondents revealed that it took them 11 years to bounce back from not saving enough for retirement. On the other hand, not paying off credit card took them about years to correct. Unfortunately, some inflict a lifetime of financial stress or even create other problems along the way. For instance, if it took a while to start saving for retirement, it may become incredibly hard to save enough for retirement life. Also, not having an emergency fund could lead in a forced rack up debt to cover an unanticipated expense. This may put off the retirement saving plan too. But above all, realizing these financial regrets sooner makes it easier to resolve them.
Start Retirement Savings
The biggest financial regret might be the late start for retirement savings. And this is also the one with the most significant long-term consequence. And delaying it even for a couple of years can put it in a much more difficult situation to catch up. And it will need a boost in savings in the years left before the retirement. So it will always be best to prepare a retirement strategy.
Now, here is a sample strategy for successful savings. First off, set a goal, a realistic one as much as possible. Not having a single penny saved for retirement at the age of 50 means it's unrealistic to make a goal of $1 million savings by the age of 65. However, if there is still a few decades to save, making sacrifices is a must to achieve the goal. Running the number through a retirement calculator can also help to know the estimated amount of retirement savings and how much savings needed every month to meet the amount.
Aside from the retirement savings, not having a stable emergency fund is the common regret. And this takes the longest to recover from. And this may be just another task on the lengthy list of financial priorities, but it can still help in avoiding countless other money disasters.
Unexpected bills always pop up out of the blue. And having a healthy emergency fund helps a lot to stop worrying about piling up debts or taking money from retirement savings to cover the costs.
For an emergency fund, try to save about three to six months' worth of living expenses. And this amount depends on a person's lifestyle. Of course, no one gets through life without a single regret. However, it is always for the best to learn from them. And in truth, being late is never a reason not to get started with the goals.
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