It’s often said that we regret the things we didn’t do more than the things we did. The road not taken. But these regrets are typically rooted in explicit choices and decisions we’ve made. Often, however, we regret things that we weren’t even aware were options – the roads we didn’t know about. This kind of regret is particularly pertinent when it comes to managing our money. Although we make dozens of choices with our money every single day, we are blind to the options we didn’t even consider.
For instance, even if we’re prudent enough to put some money aside instead of spending it on items we hardly ever use, we typically just stick it into a savings account. Or we put it into bricks and mortar. Many of us don’t even consider investing.
Perhaps this is one reason why people who have successfully met some of their financial goals often credit the advice and wisdom of those with more experience. So what advice would people who’ve been there and done that give to their younger selves – and others?
Debby Clarke, 54 bookkeeper, Harpenden
My advice would be to make an effort. I had no financial education whatsoever and I really wish I had. When I was growing up my dad handled the finances and my mum had nothing to do with them, so that set a sort of example. It didn’t help that when I met my future husband he was more clued up and I found it all a bit boring.
Many kids still leave school without a clue now. As parents we took it on ourselves to explain things like budgeting, interest and credit to our daughter and that had the effect of making me make more of an effort.
The other thing I’d tell myself is to start a pension sooner. I was in my late 30s when I took one out, but then we put all our money into getting on the property ladder, which I don’t regret. But I realise I should have invested a bit more for later in life now that I’m headed in that direction. I won’t be able to afford to retire early like my parents did, probably not at 65 either – but perhaps that’s not the worst thing.
Trevor Levy, 55, financial adviser, London
Pensions seem a million miles away in your 20s and I was no different – even though I ended up working in the financial services industry. I was trying to get people to take out a pension but I didn’t have one of my own for a while. Now, I explain to people that pensions aren’t an older person’s thing. A pension is your long-term financial friend and I should have made friends sooner. People get obsessed by property but it’s about having a balanced set of options to cover all eventualities.
Making money was seen as cool in the 1980s. Everyone was buying and trading shares. I didn’t know enough about it but I invested in a funeral firm. I thought: “There’s something that’s never going to run out of business” – but there was no plan and I didn’t hold them for very long. Everyone expected to make a quick buck in that era, but it doesn’t work like that. You need to take a long-term view and have a portfolio to spread the risk.
Richard Southgate, 70, retired, Maesteg
One piece of advice my dad gave me was: “Spend a bit, save a bit, make the devils wait a bit.” I didn’t quite heed my parents’ advice. There’s probably something in that. They knew stuff I didn’t. They were upper-working class and had to be careful with money.
If I could do things again I’d have got on the housing ladder quicker. For my generation property has proved great value. Though obviously it’s much harder to get on the ladder these days.
There was a tech boom a few years ago. I didn’t have a lot of money but I wanted to get in on it. I had a financial adviser and he said: “It’s too late, don’t bother.” I didn’t listen and lost a fair bit – so that was a salutary lesson. I have taken advice since and have done OK on the stock market. I learned to ride the ups and downs and take a long-term view. I use a technique known as pound cost averaging, which involves putting a few quid in each month, rather than investing a lump sum all at once. You can’t time the market – the ups and downs average out.
Whatever your level of confidence, HSBC could help you make better-informed investment decisions. From first-timer to experienced investor, wherever you are in your investment journey HSBC could help you take that next step. Find out more at hsbc.co.uk
Typically with pensions, your money will be tied up until you retire; investments can carry a higher risk than cash savings and you may not always get back what you put in.
