Financial Regret can always be difficult to digest – but Finance Regret can be worse and haunt you like a nightmare!
Today you will learn and understand the five circumstances that can lead to Financial Regret:
- Not having an emergency fund.
- Without investing – Blindly buying financial products.
- Not having health Insurance
Not having an emergency fund:
You know the inevitable will always happen! That’s why there such a thing known as emergency fund existing. Everyone does have a huge financial emergency at some point. That is why we all should be prepared.
It will be a really good idea to have many months worth of expenses in our fund. Many people have three months, some have 12. But what I consider is one should have at least seven to eight months, but also choose an amount that can make sense for the situation.
It’s just like if you are single you will be wanting more of your money to be in the emergency fun, and if you are married both you and your partner will want less money in your emergency fund.
There are several places to keep your emergency funds into, I think you should only place your emergency funds somewhere that is easier for you to retrieve it pretty quickly without much of a risk to your capital.
A place known as online savings account. There are many online savings accounts that deliver quite more interest than you will find at a physical bank or any credit union. Usually there are no penalties associated with taking money out of a standard online savings account, just in case if you find any then try to look somewhere else.
This was kind of one idea to where you can keep your emergency fund money. There are plenty of more ideas. So don’t really stop here, learn and get your emergency fund move in the right direction!
Important Note: Remember if you ever lose track of your emergency fund and unknowingly deplete it, you might find yourself in a world of financial hurt. Make sure to replenish it!
Without investing – Blindly buying financial products:
With the ability to do a quick search online that many of the investors are still putting their money into investment products and they don’t understand how they work. If you are trying to talk to different investors who have invested a larger chunk of their life savings into something that they could not explain to a friend, family or neighbor. So that’s different.
Always try to works it out and get second opinions, make sure that you are able to understand how this investment will work out. How much will it cost you? Such questions will keep coming and you should be able to find answers for it.
There are a lot of people that pay plenty of money in variable annuity fees and don’t even know about it. So it is possible that this can also happen to you too!
If you are thinking of purchasing in any kind of investment or an insurance product, please make sure to know about it and work it out first before you invest your money into it.
Not having Health Insurance – Financial Regret:
What if your life ends right now? How stable financially would your family be? Just in case if not, then you need life insurance.
This was just one example: There plenty of important insurance policies you should not delay in putting in place:
- Disability Insurance
- Long term care insurance (If you are over 55 years old).
- Umbrella insurance.
“I will get around doing it.” Those were the most tragic last words of a husband that left behind his wife and two kids.
He was actually purchasing a much needed life insurance policy. But he failed to sign the paper work and delayed sending in the first premium check. So unfortunately, this meant the policy was not in force.
In many other ways this wouldn’t have been a really big deal, but in this case specially. The husband took his motorcycle out of a weekend; spin and was involved in a collision that left his spouse a widow. The only financial relief could have been was the life insurance policy but it only added stress and worry to a grieving widow, no money left at the back when the family needs it the most! She has to bear with this fact her husband is now gone and she is left behind with two kids.
Please don’t ignore important insurance policies that will protect you from such financial ruins. Try to follow such advice and you will be much less likely to get kicked by your own self. Aim for no financial regrets! Get expert financial advises by our professional accounting experts of Black Ink.