One of the best ways to avoid huge life regrets is to listen to people older than you, as they have the experience and wisdom to pass on. One of the most common types of advice older people have revolves around finances. So, if you want to be smarter with your money, take on board what many over 50s regret not doing financially (and how to fix it).
Regret #1: Not Investing in Their Family’s Future
When you are young, it is normal to only think about your own life when it comes to money. However, as you get older, it’s likely that family becomes the priority, especially if you have children and grandchildren.
Many over 50s regret not taking their family’s future financial security into account, particularly when it comes to saving. Some also regret not investing in life insurance. Of course, there are over 50s plans, so it’s never too late to protect your family after your death. If you’re already nearing or over 50 and want to ensure your loved ones receive a payout to pay for things like funeral costs and household expenses, there are plenty of options. Check out Reassured.co.uk over 50s life insurance policy, which involves paying premiums each month to ensure a payout for your dependents.
Regret #2: Not Saving Earlier
The sooner you start saving, the more wealth you can build over the years. It’s common for over 50s to wish they had saved money earlier in life, as they would have been able to build interest, fund major milestones in life, and even retire earlier.
To avoid this regret, it’s generally best to stick to the 50/30/20 rule when it comes to saving, which involves allocating 20% of your income to saving money (or repaying debts).
Regret #3: Not Spending More on Experiences
While saving is undoubtedly a big deal, many over 50s also regret being too tight with their money, particularly when it comes to experiences. They wish that they had been a little more adventurous with the spending they had at the time. Want to avoid this regret but are unsure what experiences will change your life most? Some experiences money can buy include:
- Overcoming a fear (such as heights)
- Travelling to new places
- Running a marathon
- Learning a new skill (such as an instrument or skiing)
- Travelling alone
- Going on a safari
- Living somewhere culturally different from what you know
Regret #4: Not Buying a Property
Some people find that renting a property suits their lifestyle more, especially if they like to have more freedom when it comes to moving. However, keep in mind that plenty of people over 50 regret not having bought a house as an adult. Often, this is because a house builds equity over time, so it’s possible to sell the house for a profit. Plus, it becomes an asset to pass on to your loved ones.
To avoid this mistake, make a plan for buying a home now. Make it a part of your budget, work on improving your credit score, and research different mortgages.
Regret #5: Not Making Health a Part of Their Budget
It’s all too easy for younger people to spend money on unhealthy food or avoid exercise because they don’t yet have any mobility issues. There’s one thing that unites over 50s, though, and that’s wishing they had made their health more of a priority.
Even if you enjoy frugal living, it’s still important to allocate some of your earnings towards keeping your mind and body in good shape, whether that’s making monthly payments to a good gym, taking mental health breaks from time to time, or getting regular check-ups at the dentist. Your health and wellbeing are more than worth the investment.
