Regret, it’s an awful feeling to have in your life. As I was reading this Business Insider article it got me thinking of how much financial regret a majority of people will inevitably have in their life. The article mentions five financial experts and the money regrets they look back on in their life:
- Not doing research to make an educated decision
- Not listening to your gut if it doesn’t feel right
- Start investing sooner
- Living beyond your means & getting in debt
- Ignoring a collection item
These are all very legitimate regrets. A lot of people are currently suffering from or currently leading life that will lead to these regrets. My goal isn’t to depress you here, it’s to motivate you and understand how simple financial decisions can greatly affect your life.
Let’s take a look at these five and how you can take the necessary steps to make sure you never feel this type of financial regret in your future.
Not Doing Your Research
The article references a CPA who didn’t do his research when they bought their first house. This is a perfect example. Buying a home is without a doubt the biggest purchase you’ll likely ever make. That being said, the housing market is fickle and moves quick so you have to be adaptable. Before you even begin looking online do your RESEARCH to find out the following:
- Use a mortgage calculator to find out what you can afford & the monthly payment amount.
- Will the down payment use all of your savings? Does the house need repairs?
- Is your credit score high enough to secure a low APR loan?
- How does it compare to other houses in the neighborhood?
There are 100 other questions to ask before buying a house but these are crucial. The same rules apply to buying a car. Make sure to do your research, these high ticket items will be around in your life for a long time. Ask yourself these three questions for any major purchase:
- Do you really want it
- Can you really afford it?
- Will you feel good about the purchase a few years from now?