Americans Share Their Biggest Money Regrets—and Why They Struggle to Fix Them

• READ MORE: The retirement strategies that guarantee your funds never run dry

According to an illuminating recent survey, most Americans experience buyer's remorse.

However, certain regrets stand out more prominently, as two in every five individuals lament over two typical blunders related to their finances. into Bankrate's Financial Regret Survey .

The top regret mentioned by participants was failing to start saving for retirement earlier, with this concern being shared by 22 percent of respondents.

The survey discovered that not setting aside sufficient funds for unexpected expenses was the second most prevalent financial remorse reported.

'As those golden years approach, regrets over not having saved enough for retirement earlier become more pronounced,' stated Bankrate Chief Financial Analyst Greg McBride regarding the findings.

He noted that we observed a consistent rise in such regrets as people got older.

Certainly, merely five percent of Generation Z participants expressed remorse about not starting savings for retirement sooner, whereas this percentage rose to 14 percent among millennials, climbed to 26 percent amongst Generation X, and reached 37 percent for baby boomers.

The second most prevalent financial remorse identified in the research was failing to set aside sufficient funds for unexpected emergencies.

Approximately 18 percent of Americans stated in the survey that they felt remorse for lacking an adequate emergency fund to handle unforeseen expenses.

"Regrets regarding emergency funds consistently rank very highly each year, which continues the American tradition of not excelling at saving," McBride stated.

Furthermore, 40 percent of individuals who expressed financial regrets stated that they have not made any advancements regarding these issues in the past year.

The most frequent explanation provided for failing to set aside money for retirement or an emergency fund was the surge in prices due to inflation.

Although the yearly inflation rate has decreased from the peak observed in June 2022, which was the highest in four decades, it remains higher than the Federal Reserve’s 2 percent objective.

The second most common reason people gave was their employment situation - which may include factors such as how much they are being paid or if they are unemployed.

McBride warned that even though most Americans experience some financial remorse, it is still possible to make beneficial alterations.

About 44 percent of the respondents indicated that they had experienced some advancement regarding their regrets within the past year, while 16 percent stated that they had achieved considerable progress.

McBride recommended that young Americans sign up for their employer's retirement plan and set up automatic deductions.

He likewise suggested setting up automatic transfers from a checking account to a savings account to start establishing an emergency fund.

He recommended that making these minor adjustments can help avoid financial remorse in the future.

He mentioned that you can pursue both objectives at the same time.

'By automating this process, you ensure that you pay yourself first, and both tasks are handled automatically even before you get up in the morning.'