Money mistakes happen to everyone. A new survey just showed what Americans wish they’d done differently with their cash. Let’s look at these money regrets and how to avoid them.
Saving for retirement tops the list of financial regrets for many Americans. About 22% of people in a recent survey by FinanceBuzz wish they had started saving earlier. When you’re young, retirement seems far away. But the magic of compound interest works best with time. Even small amounts saved in your twenties can grow significantly by retirement age.
“The biggest mistake I see is people waiting until their 40s to get serious about retirement,” says financial advisor Maria Chen. “By starting in your 20s, even with just $100 monthly, you could have hundreds of thousands more at retirement than someone who starts in their 40s.”
Credit card debt ranks as another major regret. Many Americans wish they had been more careful about racking up high-interest debt. With average credit card interest rates now exceeding 20%, carrying balances can trap people in a cycle of minimum payments that barely touch the principal amount owed.
Emergency funds – or the lack of them – cause significant stress too. About 18% of survey respondents regret not having money set aside for unexpected expenses. Without this safety net, many people turn to credit cards or loans when emergencies happen, creating more debt.
“An emergency fund is like insurance for your finances,” explains personal finance expert James Wong. “Even starting with just $1,000 can prevent many financial disasters.”
Education costs create lasting regret for many. Some wish they had saved more before college, while others regret borrowing too much for degrees that didn’t pay off financially. With student loan debt now affecting over 43 million Americans, this concern isn’t surprising.
Housing decisions cause financial headaches too. Buying too much house, failing to shop for the best mortgage rates, or purchasing in declining neighborhoods all made the list of regrets. Since housing typically represents people’s largest expense, mistakes here can be costly.
Investing hesitation is another common regret. Many Americans wish they had started investing sooner or learned more about how markets work. Fear often keeps people from investing, but historically, the stock market has provided better returns than savings accounts over long periods.
Financial educator Sophia Martinez notes, “I often hear people say they wish they hadn’t kept all their money in savings accounts for decades. Inflation quietly ate away their purchasing power.”
Living beyond their means rounds out the top regrets. The pressure to keep up with friends or social media influencers leads many to spend more than they earn. This habit prevents saving and often leads to debt.
But there’s good news in these regrets – they point to clear actions anyone can take today. Start by tracking your spending for a month to see where your money goes. Many people discover they spend hundreds on things they don’t even remember buying.
Next, create a simple budget that includes saving. The popular 50/30/20 rule suggests using 50% of income for needs, 30% for wants, and 20% for savings and debt reduction.
For retirement savings, contribute at least enough to get any employer match in your 401(k), which is essentially free money. Then try to increase your savings rate by 1% each year.
Attack high-interest debt aggressively, starting with credit cards. Even paying $50 more than the minimum each month can dramatically reduce how long it takes to become debt-free.
Build an emergency fund alongside debt payoff. Even small amounts add up over time. Many financial experts recommend saving three to six months of expenses eventually.
For younger Americans concerned about education costs, explore scholarships, community college pathways, and in-demand fields before taking on large student loans.
The survey revealed that financial education matters too. People who learned about money management early reported fewer regrets later in life. Parents can help by talking openly about money with children and teaching basic concepts.
“Financial literacy isn’t just about math,”
