Nobody can fully predict the future. Anything can happen, of course.
But that shouldn’t stop us from making wise decisions today that, generally speaking, lead to the best outcomes—both personally and as a society.
Because when it comes to the decisions we make with our money, our choices today create the reality of our tomorrow. They are the building blocks that shape our future.
With that in mind, here are 10 financial decisions you’ll probably regret in 10 years. They may seem minor or inconsequential today, but over time, they can divert you from your path of living a focused, intentional life.
10 Financial Decisions You’ll Regret 10 Years From Now
1. Spending too much money on a car.
A car serves a purpose—it gets you from point A to point B. Spending a significant chunk of your income (or first paycheck) on a really expensive car might make you feel good in the short term, but it depreciates quickly, and the money could have been better spent elsewhere.
Remember, the best way to get ahead financially is to not spend like you already are.
2. Not saving for retirement.
It’s easy to think that retirement is a long way off, especially when you’re in your 20s or 30s. Additionally, the amount of disposable income available to put away might seem insignificant when you’re just starting out.
But the power of compound interest is astounding, and starting early is key. Ten years from now, you’ll wish you had started today. Those small amounts add up. Even more, it gets you in the habit early.
3. Spoiling your kids with whatever they want you to buy them.
It’s natural to want to give our children the world. But indulging their every wish can lead to a sense of entitlement and certainly won’t teach them the value of money. Plus, giving into one request doesn’t stop the next request. Just the opposite, it encourages more and more.
Instead, consider instilling in them the joy of intentional living, minimalism, delayed gratification, and spending wisely. It’s good for kids to hear “no” once in awhile. Just be sure to explain the reason behind your “no” as best you can.
4. Not having an emergency fund.
Life is unpredictable. You might lose your job, have unexpected medical expenses, or need urgent home repairs. An emergency fund can be a lifesaver in these situations, providing you with peace of mind and financial security.
Starting one will require discipline—which is also amazingly helpful to learn.
5. Not learning how to budget.
Budgeting isn’t restrictive; it’s freeing (or sexy). A budget gives you control over your finances and helps ensure you’re spending your money on what truly matters to you. Without a budget, it’s easy to lose track of your spending and end up living paycheck to paycheck.
Here’s the approach I recommend: A Spending Plan that Actually Works
6. Not investing in the stock market.
The stock market can seem intimidating, but it’s one of the most effective ways to grow your wealth over time. And historically, the market trends upwards over long periods—especially ten years.
Investing early not only capitalizes on this growth potential, but it also provides invaluable lessons about market dynamics and financial management. These insights will serve you throughout your life, helping you make informed decisions and foster financial resilience.
The smartest first step is almost always to invest in a fund that just moves with the market, like VOO. And apps like Robinhood make it easy.
7. Buying too much house.
There are so many positive benefits of living in a smaller home—many that go beyond the financial stress of overspending on a house.
That being said, a house is likely the largest purchase you’ll ever make. And while it’s tempting to buy your dream home, stretching your budget too thin can lead to financial stress and even worse. Instead, buy only the home you need.
8. Carrying a credit card balance.
While credit cards can be convenient and useful, they can also lead to excessive debt if not used responsibly. Paying off your balance each month is important to avoid high interest charges. That is the only way I’ve ever used them and have never regretted that approach.
On the other hand, living off credit cards and only paying the minimum due every month can lead to a debt spiral that’s hard to escape—and I know lots of people who have regretted getting caught in that spiral.
9. Not paying your taxes.
Taxes can be complex and, for some, burdensome. It may be tempting to delay or ignore them, particularly if you’re facing financial difficulties. However, unpaid taxes can lead to penalties, interest charges, and even legal action from the IRS. The stress and financial burden this creates can linger for years, often far outweighing the initial tax bill. It’s important to seek help and address tax issues promptly to avoid these long-term consequences.
10. Not investing in your health.
It’s easy to prioritize immediate financial goals over long-term health. But neglecting regular check-ups or a healthy lifestyle can lead to expensive medical bills down the road. Remember, an ounce of prevention is worth a pound of cure.
Exercise, eat healthy, get the rest your body needs, and avoid unhealthy addictions. Your future self (and your future finances) will thank you for it.
Again, nobody can predict the future, but the choices we make today undoubtedly shape our tomorrows. Remember, every dollar you earn is a resource—a tool for building the life you truly want. Use them wisely.
As always, the journey towards financial responsibility and minimalism isn’t about deprivation—it’s about focusing on what’s truly important. We’re not just cutting back. We’re making room—room for more freedom, passion, and life.
Both today, and ten years from now.
Ramsay. says
At 68 years old, I have made my share of financial mistakes. As a result I learned when it comes to money nobody lookes after your money better than yourself. As a self made multi millionaire, my advise is to find a mentor who has a proven track record with making money. Success leaves clues. As I tell my kids don’t learn the hard way. Listen to your old man. Real-estate ownership has been my best investments. As a working person you can not afford not to own a house. Or you will never accumulate wealth. Don’t spend more than you make. Your money has to work harder than you working 8 to 5pm. If you raise your children well, they will never need your money.
Giriah says
Good article at the same ti.e we should enjoy the money. Life can be short or long we dont know. People tend to save money and they will not utilize it. You should balance all life, money , health and death. I always remember my age to spend money. I calculate how long I may live and buy things which I want. My advice dont only save spend it on good things. Death we cannot avoid. Dont save too much for your kids or grandchildren’s.
Cryptocurrent says
Every bullet point here has grey areas that can easily sway one way or another, depending on the individual and circumstances involved. Bad advice for one person might actually work out well for the next, but without determining external factors and taking them into account, it’s not so cut and dried as people might think.
Wiserthanthat says
I don’t think I’ll take advice from anyone with crypto in their financial moniker.
Ang says
All great points! As a money professional myself, every point made, especially the one about compounding interest, is bang on! However, I slightly disagree with one point…housing. Depending where you choose to live, upgrading your home will almost 100% lead to higher wealth creation, especially of this is your first home. Skip the condo and reach for the townhome, or skip the town and reach for the single detached if you can. In my experience, quality real estate pays you back in the long run.
Marion Morris says
#11… listen to Dave Ramsey, all these points above, Dave has been preaching for 30 years. He has changed my finances and I’m really enjoying my retirement, all due to Dave.
thanks,
Marion
David E. Rockett says
Sorry to NOT see…#Giving more to those need…& leaving a bigger Legacy — two things/habits Highly encouraged in Holy Scripture.
Also SAD to see, after 40+ yrs in Fin. Services [series 7 Stock Broker/Insurance] #6. Real historic research shows overwhelming majority of people LOSE money in the stock market. Manipulating “returns” per openly endorsed Fraud, and hidden fees covered up & endorsed by the Financial Elite makes a Bad place for most people. Also, BIG difference in learning to Accumulate Capital safely…and Risking Savings you cannot afford to lose. Better to find a really knowledgeable Infinite Banker practicioner.
tamla says
# 3 & 5 are so right on. I budget like nobody’s Business since I get paid Biweekly. Before My Deposit goes through on Friday, I get access to my Payroll Sheet then I know exactly what my Pay is. Then early in the morning before work, I pay my Bills using a printed Excel sheet with all of my Bills. I live in Canada and after I pay a Bill, I use it to write down the Confirmation Sheet to acknowledge it was paid off. Since Covid, I spend much less and when I do, I know that I can afford it.
Rhonda says
Thank-you for this article. I have been talking about this to people who have assumed, and affected our friendships, that I’m wealthy and privileged. I’m not. I grew up in abject poverty and the two things my grandmother said were “No” and why she said no and “Here today, gone tomorrow “. My son started his retirement and tax free savings accounts at 18. He’s 21 in two months. Because he started early, he is able to max out his eligible yearly contributions and won’t be behind. The benefits of giving your children a financial education is SO important, especially these days. I HIGHLY recommend teaching them how utterly detrimental marketing and advertising is to their mental health.
Craig Shannon Sr says
Investing in the stock market is dangerous, besides you are only getting 7 to 8% ROI annually. The bear goes out the window at free fall speed when the market busts, whereas the bull goes up the stairs slowly in a boom cycle. Real estate is better because you are getting triple and quadruple ROI over a 20 year period out performing stocks 27 times over that period. That means one rental investment of 50k with ROI of 25% would be worth 4.3 million in a 20 year period. Credit cards and other lines of credit are phenomenal because they are open ended revolving accounts. Use them as your new checking account because they allow you to maintain cash flow. Cash flow is more important than cash accumulation because cash flow comes every month whereas cash accumulation will go to zero sooner or later. Avoid loans because they rob you of your wealth and instead convert loans to lines of credit. I paid off my 323k house in 5 years and saved over 150k in interest because of this knowledge.
Elle says
Buying a QUALITY car matters for one who drives in low-traffic parts of this country out West. Although many assume I paid a fortune, I bought a base model C300 7y ago. I love it and it will last for decades (I assumed my final purchase). That said, SAVE $$$ until you can write a check for the car. It was gloriously satisfying :-)
YES on all the rest!
Kathryn Jang says
Soap many of these I regret at the age of 61.