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The Biggest Financial Regrets of Americans...And How To Avoid Them

Catey Hill at Marketwatch.com recently reported, “Many Americans are filled with regrets – financial regrets.” In fact, 3 out of 4 harbor Financial Regrets and how to avoid themregrets, according to a recent survey by Bankrate.com.

Sadly, the biggest regret is not saving enough for retirement early enough. The other regrets in descending order are:

  1. Not saving enough for emergency expenses
  2. Taking on too much student loan debt
  3. Taking on too much credit card debt
  4. Not saving enough for children’s education
  5. Buying a bigger house than they could afford

Waiting to save for retirement is costly. If a 25 year old begins saving $300 a month for 30 years, he will accumulate about $450,000 due to compounded interest. But, waiting 10 years to start gives the saver $250,000 by age 65. Although admirable, it’s a full $200,000 less!

Employee Benefit Research Institute estimates that only 14% of workers have $250,000 or more saved which according to many financial advisers is far too little. Fidelity suggests that by the age of 30 you should have your entire salary saved; by 40, 3 times your salary saved; and by 50, 6 times your salary saved.

How is this possible? By living below your means! And, is this money to be accumulated so you can spend your retirement years in luxury? Hardly! Proverbs 13:22 says “A good man leaves an inheritance to his children's children.”

Because people are living longer, it is wise to prepare for retirement to avoid being a burden on loved ones or dependent on the welfare of others. In light of the fact that 28% of workers say they have less than $1000 saved, we’ve got a lot of work to do!

 

Chuck Bentley is the CEO of Crown, the largest Christian financial ministry in the world, founded by the late Larry Burkett. He is an author, host of My MoneyLife - a daily radio feature, and a frequent speaker on the topic of Biblical financial principles. Follow him on Twitter and visit Crown.org for more help.

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