It’s not uncommon to have regrets, and as you get older, they can pile up. For older respondents, starting to save for retirement on the late side is the biggest concern, according to a 2024 Bankrate study, followed by not saving enough for emergencies. 

Not surprisingly, inflation and a higher cost of living can feel like huge financial roadblocks that prevent many Americans (45%) from reaching their financial goals or making any upward progress financially. 

“Inflation and high prices are cited as the biggest obstacle to progress in addressing our financial regrets,” says Bankrate chief financial analyst Greg McBride, CFA. “Don’t expect an overnight fix. Inflation is moderating, but that doesn’t mean prices are coming down, just that they’re not going up as fast.”

After inflation, respondents’ employment situation (18%), high interest rates (9%), family dynamics (7%), housing market conditions (3%), or something else (8%), kept most Americans from making any progress in resolving their financial regrets. Just 9% say nothing has stopped them from making progress on their financial regrets over the past year.

Other standout financial regrets

Given soaring consumer debt in the U.S., reaching $4.9 trillion in non-housing debt by the end of June, you might assume that debt would be a top regret. Interestingly, however, respondents to the survey regretted not having enough in savings as opposed to taking on too much debt by a 2-to-1 margin (43% vs. 22%). 

Other standouts include having too much credit card debt (14%) or student loan debt (5%), not saving enough for their children’s education (4%), buying more house than they can afford (2%), or something else (12%). On the upside, 18% say they had no financial regrets, and 5% aren’t sure what their most significant financial regrets are. 

“Saving is much less painful than dealing with the debt that results when you don’t have it,” says McBride. “Paying down debt means doing without, cutting spending, or working more. Saving for retirement and emergencies can be automated through payroll deduction, direct deposit, and automatic transfers. Start modestly, and after a couple of pay periods, you won’t miss what you don’t see.”

Regrets by generation

It’s no surprise that older generations closer to retirement age are more likely to regret not saving for retirement early enough, compared to younger generations who are more likely to regret not saving enough for emergencies.

The survey, conducted by YouGov Plc on behalf of Bankrate, included 2,355 U.S. adults, of whom 1,822 have a financial regret. Visit Bankrate for the full report. 

How to undo a past regret

Sometimes, the first step to healing is simply acknowledging the regret. The second step is forgiving yourself and moving on. That way, you can make progress in determining the next steps to achieving your financial goals. 

Here are some concrete ideas to help you move beyond your financial regrets.

• Try the new 60/30/10 budgeting method. This method recognizes that it’s harder to save in an inflationary environment. The 60/30/10 method advocates assigning 60% of your budget to needs, 30% to wants and 10% to savings. ONce inflation cools you can go back to a traditional 50/30/20 budget to save more.
• Take advantage of retirement plans now. Experts agree that saving at least 15% of your gross income for retirement is best to ensure you retire comfortably. The best time to start saving is now. If you fear you are way behind the crowd, you might find that your generation’s average 401(k) balance is lower than you thought. Figure out if a 401(k) is worth it for you.
• Consolidate your debt. If car, house, credit card and living expenses cost you so much that you’re struggling to make ends meet, that’s a red flag. Consider consolidating your debts with a consolidation loan. Or, make a plan to pay down high-interest debt from credit cards and get credit counseling if necessary.
• Build an emergency savings account. No one knows when an emergency will strike, so it’s best to have some money socked away “just in case.” If you’re expecting a raise or a tax refund, you might consider earmarking this money for savings. 
• Learn from the mistakes of others. Learn about the top mistakes retirees have made so you can avoid them.
• Get help if you need it. Financial regrets may lead to mental health or relationship challenges.  There are ways to take care of mental health and money problems simultaneously. 

Bottom line

Trying to plan for the future and making sure you have enough saved early enough for retirement can feel as overwhelming as choosing what to watch next on Netflix. There are so many options. That’s why setting financial goals and finding a financial advisor to help set you up for lifelong success makes sense. After all, the everyday things you do with your money today can positively (or negatively) affect your future tomorrow.