Instead of getting stuck in a rut after a financial mistake, it’s important to move forward in the right direction. So, what can you do to recover? Find out on today’s show.
(Click the featured times below to jump forward in the episode)
Everybody makes mistakes in life, and more likely than not, you’ve made a financial mistake at some point too. How do you move on from these mistakes? On today’s episode of the podcast, Eric talks through the ways to bounce back from a financial mistake.
To start, determine the cause of the mistake. Did you listen to bad advice? Did you react logically or emotionally? The reason Eric does a retirement readiness review with clients is to help educate them on the thought process to making wise financial decisions. When you make decisions on facts and logic, typically it works out better because you’re making an educated decision.
Are you playing catch-up on saving for retirement? Try to think of ways you can boost that amount now. Knowing what you’re spending and budgeting can help you cut back in areas where you could save. Knowing how much you need, each month now and in retirement, is key.
How can you offset past mistakes? You might need to recalibrate your goals. For instance, maybe you’d like to retire but can’t quite afford it yet. Perhaps instead of retiring completely, you work part-time for a few more years. Or maybe you need to consider what you really want to happen with your house in retirement. Do you want to travel or continue to maintain a home?
Finally, get a plan in place. You may think you’re in a worse condition than you actually are. So find out just where you’re at with the help of an advisor. Stress test your plan now to make sure you don’t make mistakes in the future. If you get a course of action and have a retirement analysis done with a financial advisor, you might feel more confident and ready for what’s to come.
Listen to the entire episode or skip ahead using the timestamps below.
[1:27] – Start by determining the cause.
[3:11] – Increase the savings rate.
[4:52] – Recalibrate your goals.
[7:08] – Have a plan of action.