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Do you have any money regrets? Maybe you made a financial mistake years ago that still continues to bother you. Or, maybe recently you’re second guessing an investment decision or purchase you made.READ THE ARTICLE
Whichever the case, it’s important to know that money regrets are common, and while we try to avoid the unforced errors that come along with money management, your mindset is the key component to overcoming any shame.
Process and planning: To help avoid financial mistakes, the first step is employing the right engineering. This includes honing in on Structural Design (a “risk-appropriate portfolio, reasonable life expenses, etc.”) and Implementation (“portfolio rebalancing, auto paying bills, etc.”). These two areas can help reduce error, as well as following author Rubin Miller’s mantra: “I make the best decisions I can with the information available. And I don't stir if I have a bad outcome due to random, unforeseen factors, as long as the initial decision was high quality.”
The power of financial peace of mind: But according to Miller, the ultimate, first-class life hack is having earned a margin of error to not let unforced errors ruin your day. Knowing you are still financially sound despite a money mistake is one of the biggest ways to move on. Despite this, however, error is always inevitable at some point, and Miller shares three personal finance moves he regrets; Two including lessons on optionality and understanding your opportunity costs, and another on the elusiveness of material items (including an $11,000 white couch).
Map your course: At the end of the day, if you follow a framework to help ensure financial success, it’s easier to accept the inevitable mistakes along the way.