Physicists know that for every action there is a re-action and it’s the same with money. With every financial decision you make (or don’t make) there is a consequence. Consequences may not, however, be instantaneous. They make take years to unravel. Where we end up in life is the sum of the consequences of every financial decision made.

People who don’t consider the consequences of their financial decisions jeopardise their financial futures. When it’s too late, they complain ‘if only I had….’ and there follows a list of things they have or have not done which have impacted their long-term future. Some of the key things people regret later in life are:

1. Borrowing money to buy a first car, which turns out to be a dud. So many young people can’t wait to get their first set of wheels but then find the cost of running and maintaining the car takes up most of their spare income. The debt can last longer than the car
2. Going overseas with a student loan without thinking about how to make loan repayments and the impact of interest. This has caused financial pressure for many people off on their travels.
3. Having too much money tied up in a family home. Your home is not an investment, it is just a place to live.
4. Not buying a house at all. While your home is not an investment, you still need one. It’s not easy to live on a pension when you are paying rent.
5. Spending too much on ‘stuff’ that has no lasting value – clothes, food, gadgets, etc. It’s not till you get to retirement that you realise how much better your life would be in your last years if you hadn’t been so wasteful in your younger days.