Jun 3, 2021
Today, we’re focusing on financial decisions people made in the past that they regret. One of the biggest mistakes people regret is that they start living up to the amount of money that they made. It’s known as lifestyle creep. As your income increases, you spend more instead of saving more.
You need to ask yourself, “Can I afford it?” Don’t ask, “Can I afford the payment?” You can’t afford it if you can’t buy it outright. Save up for the things you want, and then buy them. You learn patience and delayed gratification. Frugality is a virtue that is often overlooked until we’re forced into it.
With retirement accounts, you know you’re not supposed to touch that money until you’re ready to retire. But some people like to dip into it early, which is a mistake.
If you have credit card debt or car payments, they will eventually go away. But you need to learn to be frugal to get rid of them faster.
With finances, it’s important to have goals. Some people want to pay for their children’s college so they have one leg up on life. But sometimes it hurts people’s retirement by helping their children. It seems like a worthwhile sacrifice, but you and your children may regret it if your children are helping you financially later in life.
Check out the full episode or use the timestamps below to hear a specific segment.
What we discuss on this episode:
1:46 – Two ways of thinking
4:04 – Regret
7:33 – Goals
10:33 – Responsibility of children
12:21 – Sandwich generation
For more, visit us online: http://flemingfinancialservices.com