Yahoo Finance 5 biggest money regrets I wish I’d corrected sooner
Although Emma wishes she'd acted sooner, it's never too late.
Sometimes, given the state of the housing market, I wonder if my biggest money mistake was being born 20 years too late and to parents with the wrong number of zeros on the end of their bank account. But, in all seriousness, I definitely have some real financial regrets that cost me.
When I decided to turn my finances around six years ago, I had to unwind years of dodgy spending habits, face up to my bank statements and pay down credit card debt that I’d racked up simply by being uninformed about money management.
Here are some of the biggest mistakes I wish I’d known to avoid.
Getting stuck in the work, spend, repeat trap
Ever since I was a teenager serving paninis in a local café, I’ve worked a lot. I had fun at my hospitality jobs and would pick up extra shifts to bring in as much money as possible.
Also by Emma Edwards:
Unfortunately, instead of saving any for the future, I got myself stuck on the 'work, spend, repeat' hamster wheel. I’d exhaust myself working, spend all the money I made doing it, and then have to keep working more and more to keep up with myself. It felt like I was always working and never had anything to show for it.
Essentially, I got complacent with my ability to just work more and more. I kept deferring my plans to save money, telling myself I’d fix it later. I wish I’d worked less and been smarter with my money sooner so I could’ve had cash in the bank to give me more choices in life.
Being more generous than I could afford to be
I’ve always enjoyed giving gifts and being generous with my money, but it all adds up. Shouting rounds of drinks, picking up the bill and not following up when people owed me, or always being happy to pay a bit extra to cover the tip. It all contributed to the cycle of money leaking out of my account on repeat and meant I never had much to show for what I earned.
Not negotiating salaries or advocating for my worth
I’ve never negotiated a salary in my life. I didn’t know that you could, and I didn’t know how. I’ve always worked for smaller businesses, and I’d always assumed that negotiation was a big corporate thing. I took every salary offer on face value and thought I just had to accept it.
I wish I’d known to shop around for jobs, been more confident in my skills, and known that I could pursue higher salaries. I’ve missed out on tens of thousands of dollars in comparison to what other people have told me they earn.
Taking out credit too young
I took out a credit card when I was 19 to use in emergencies – but of course, emergencies soon became rounds of drinks and online orders. It was harmless at first because I’d pay off the balance but, eventually, I racked up several thousand dollars that I owed and kept promising myself I’d get on top of it.
Only when I stopped using the card and worked at chipping down the balance from every single paycheque did I finally kick the debt.
Squandering an inheritance
My grandmother had been famously frugal her entire life, so I was shocked when she left me a gift in her will. I did put some of it to good use, buying textbooks and a laptop for uni, and rent during my placement year, but I also spent it on clothes, drinks and endless hangover breakfasts.
I wish I’d known about investing sooner so that I could’ve made it go further, but I simply didn’t know any better.
We’ve all got money regrets
I asked my Instagram community to share their regrets and was relieved to learn that I’m far from alone in wishing I’d changed my money habits sooner. There were some other commonalities, too, with several citing these mistakes as their top regrets:
Sticking with the same bank as my parents for too long and missing out on interest
Investing money into a friend’s business – the money's gone and the friendship is now over
Taking out car finance
Spending $50,000 on a wedding that ended in divorce 18 months later
Increasing spending at the same rate as salary
Lending money to friends (out of people pleasing)
Buying into hyped-up beauty products
Falling for scams
Interest-free finance for laptops, TVs, and tech
Going to uni and taking on HECS debt (and now not using the degree)
Looking back on your money regrets can be frustrating but, ultimately, we can only work with the knowledge and resources we have at the time. Often, it’s those regrets that get us to take action and make positive changes for the future, so embrace those mistakes and use them as fuel to redefine your future path.
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