These Are the 3 Money Mistakes Women Regret Most
Recently, GOBankingRates conducted a survey of 1,001 adult American women about their finances. The survey asked about monetary goals, investments, debt, spending habits and other facets of financial health.
When asked what their biggest financial regret was, the top three answers were as follows: taking on credit card debt (25%), not starting to save for retirement sooner (19%), and not building an emergency fund (16%).
Find Out: I’m a Self-Made Millionaire: Here’s My 4-Step Payday Routine
For You: 4 Genius Things All Wealthy People Do With Their Money
These are common mistakes that financial experts see time and time again. There are methods to recover from these errors, however, and once you’re back in the black, you can ensure it doesn’t happen again.
Read on to see what financial experts recommend when it comes to these three frequent money mistakes that women regret the most.
Credit Card Debt
Pay Off the Debt as Soon as Possible
It’s easier said than done, but it’s a crucial step. When examining your credit card debt, you need to come up with a plan to pay it off. Amanda Webster is the chief operating officer at Fund&Grow, and said there are a couple different ways you can go about paying down your debt.
“[If] your balances are nearly maxed out, that tells you that you must take steps to bring your debt down. You can do that by making larger monthly payments or looking into a consolidation loan, which will allow you to combine all the debt under one account, usually at a lower interest rate, and keep those credit accounts open to use in the future.”
Webster also recommended looking at your statements and seeing what’s impacting your credit score the most to decide what to pay off first, and how.
“Depending on what you find, that will dictate what you should do next. If you have collections, charge-offs, or late payments, consider negotiating with the creditor or verifying the accuracy of the information. From there, you can determine if you can dispute it with the credit bureaus to have them removed,” she said.
Trending Now: Warren Buffett: 10 Rules for Young People Who Want to Get Rich
Get a Secured Credit Card
Once you’ve paid off your credit card debt, Webster recommended signing up for a secured credit card to build up your credit. “A secured credit card is one of the top methods for building or boosting your credit score.”
One example of this is the Discover it Secured Credit Card. With this card, you provide a refundable security deposit when you apply. Once you’ve had a track record of paying bills on time and in full, you can get the security deposit back after seven months.
In the meantime, you’ve helped build your credit score. The card even offers rewards, so you can still get cash back even on a secured credit card.
Not Saving for Retirement Sooner
Make 401(k) Catch-Up Contributions
The best time to start saving for retirement was yesterday, but the second best time is today. If you haven’t saved up, start now.
“Retirement may have seemed so far away when you began your career that it almost didn’t seem like something that would actually happen,” said Todd Stearn, CEO of The Money Manual. “So it can be easy to put off retirement saving when you’re barely able to keep up with your bills as it is. Fortunately, making 401k catch-up contributions starting the year you turn 50 can help you get caught up fast. You can make these catch-up contributions through automatic withdrawals, just like regular 401k contributions, so it’s not something extra you have to manage.”
For 2024, the general 401(k) contribution limit is $23,000. If you are over the age of 50, you can add an extra $7,500 in catch-up contributions. If you have a 401k plan through your employer, that’s even better. For this year, the limit on employer and employee contributions is $69,000, so contribute as much as you can.
Move Money Into Low-Risk Investments
If you’re not over 50, or if you want other ways to build up your retirement savings, Stearn recommended investing.
He said, “It can also be a good idea to move some of your money into low-risk investments like high-yield savings accounts and CDs (certificates of deposit) as you draw closer to retirement.”
Your bank will typically offer a variety of CDs. Check with them to see which one would work best for you.
Not Building an Emergency Fund
Put Money Away Automatically
If you don’t have an emergency fund, it’s easy to begin saving. One way to save without even thinking about it is to have some of your paycheck automatically deposited into a savings account.
“If your employer offers direct deposit, ask if you can have your payroll check split into two bank accounts,” Cynthia Pruemm, the founder and CEO at SIS Financial Group, said. “Having even a small amount directly deposited into a savings account would help build your emergency fund.”
Pruemm said to go even further with this, you can have your savings account at a different bank than your checking account so you have another hoop you have to go through in order to withdraw from it.
Methodology: GOBankingRates surveyed 1,001 American women aged 18 and older from across the country on between April 18 and April 20, 2024, asking eighteen different questions: (1) What is your primary financial goal?; (2) What is the biggest barrier to achieving your financial goal?; (3) If you are actively investing, what is your primary investment vehicle?; (4) If you are not actively investing, what’s preventing you from investing?; (5) How much student loan debt do you currently have?; (6) How much credit card debt do you currently have?; (7) What is your biggest obstacle to paying off your debts (credit card, student loan, medical, etc.)?; (8) What is your biggest source of financial worry/stress?; (9) What is your worst money habit?; (10) How involved are you in household financial decisions compared to your partner?; (11) Which of the following financial professionals have you utilized? (Select all that apply)?; (12) Do you consider yourself financially secure/stable?; (13) What is your biggest financial regret?; (14) Do you consider yourself bad with money?; (15) How would you describe your relationship with money?; (16) Do you consider yourself to be financially independent?; (17) Which ways do you live frugally (Select all that apply); and (18) What actions are you taking to build long-term wealth? (Select all that apply). GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: These Are the 3 Money Mistakes Women Regret Most
