The biggest regrets you'll have in 2011

Rachel Wait reveals your biggest financial regrets for 2011 and how to avoid them...

For some of us, a New Year offers a chance to reflect over the previous year and think about what went wrong and what went right. Perhaps you have some regrets, or maybe you view every mistake you made is just part of life’s great learning curve.

No matter how you view the New Year, and however much you vow that this year will be better than last, there’s bound to still be a few blunders made in 2011. So here, I’m going to predict what your biggest financial regrets will be at the end of this year.

#1 Not saving enough money

Taking spot number one is not saving enough money. This is a problem for many of us – particularly in today’s climate. With pay cuts, pay freezes, and job losses, finding enough money to simply pay the bills can be hard enough, while finding extra cash to put in your savings account is even more of a challenge!

And even if you do have a bit of extra money at the end of the month, it’s far more tempting to spend it than save it!

So if you want to improve your chances of saving this year, check out our how to guide: Build up your savings to get you into the savings habit.  

#2 Failing to pay off your debt

Debt is another tricky one. It’s easy to rack up lots of debt on your credit card, overdraft, and so on. It’s not so easy to clear it. And sometimes it can feel like you’re simply going round in circles and getting nowhere.

A good place to start, however, is by transferring any credit card debt over to a 0% balance transfer credit card. And right now, you can enjoy 17 months interest-free with the Barclaycard Platinum with 17 Month BT Visa. This means you will have almost a year and a half to start tackling that debt without paying interest. (Bear in mind, there is a 2.9% balance transfer fee.) Find out more in The best balance transfer card ever!

For further debt advice, read The best ways to get out of debt.

#3 Neglecting your retirement

What with trying to save money and pay off your debts, it’s very easy to forget about your retirement.

But if you’re one of the lucky ones and retirement is not too far away, there’s a good chance that one of your regrets for 2011 will be failing to save enough for your retirement.

And even if retirement still seems a long way off, this is a regret you’re also likely to have later down the line.

The earlier you start your pension, the longer your investments have to grow - as I revealed in Boost your pension by £416,186!

So if you haven’t been paying your pension as much attention as you should, now’s the time to improve it! Find out more in Become a pensions expert in five days.  

(Even if you're not planning to use a pension, and would prefer to rely on your ISAs or property instead, make sure you don't leave it too late.)

#4 Spending too much on your holiday

Personally, I find January extremely depressing. The fun and frolics of Christmas are over, the weather’s still cold and we never see any daylight. As a result, the only thing to look forward to is a holiday – and it’s very easy to get carried away and spend a little too much when you’re planning your much-desired trip away.

So if you want to avoid this, take a look at our how to guide: Have a cheap holiday for some top tips on keeping the costs down.

#5 Spending too much on your car

With petrol prices continuing to rise, owning a car is very expensive. And if your car is on its last legs and you need to buy a new one, you can kiss goodbye to even more money. So it’s pretty likely that spending too much on your car is going to be another regret of 2011.

To cut costs, take a look at our how to guide: Beat the petrol price hikes. And if you need to buy a new car, buy one second-hand and make sure you pay for it the right way.

Alternatively, if you don’t really need a car, why not ditch it and save some money instead?

#6 Using your overdraft too much

Are you in the habit of slipping into the red? If so, over-using your overdraft is likely to be another regret this year.

With overdraft fees and interest rates going up and up, using your overdraft on a regular basis can be a very dangerous and expensive game. So for some top tips on how to tackle your overdraft, read Three ways to get rid of your overdraft for good.

#7 Taking out a store card

Offers of 10% off your purchase today and exclusive money-saving vouchers can be highly tempting when you’re in a hurry and buying something from a store. However, if you get sucked into taking out a store card, you’ll likely regret it.

That’s because most of these cards charge outrageous levels of interest – often as high as 30%. And if you can’t afford to pay off your bill in full each month, this is going to hurt! 

So make sure you use a 0% on new purchases credit card instead. The Tesco Clubcard Credit Card offers 13 months interest-free on all purchases! Just make sure you pay off the bill in full before the end of this period to avoid being hit with an interest rate of 16.9%.

#8 Taking out a loan

Taking out a personal loan for something such as a holiday or a wide-screen television is a big no-no. There’s absolutely no point getting into more debt if you don’t need to. So avoid taking one out unless you genuinely need to.

On the plus side, if you do need to take out a personal loan, loan rates are falling so you can pick up a good deal if you know where to look – find out more in Quick! Get the cheapest loan rate in years.

#9 Buying too much on impulse

I have to admit, I’ve been guilty of spotting something in a shop window and wanting it there and then. Unfortunately, however, buying too much on impulse can be a big mistake and you’re likely to be throwing money down the drain.

If you do genuinely need to buy something, make sure you do a little research and shop around first to check whether you really are getting good value for money.

Read Nine things you should never buy last minute for more information. 

#10 Forgetting to shop around

And this leads me nicely on to regret number 10!

Failing to shop around for any financial deal you require this year is also a big no-no. Taking the time to research a good deal for your car insurance, home insurance, credit card, current account, savings account, energy provider and so on is important if you want to ensure you’re not spending money unnecessarily.

The good news, of course, is that lovemoney.com can help you with this! Not only do we have a range of comparison centres to help you find the best deal – no matter which financial product you’re after – but our site is also packed full of useful articles with top tips to show you how to save money!

Happy New Year!

More: 11 routes to riches in 2011 | Obliterate your money worries forever this year