There is a reason why you save money and spend according to your earnings.

Being financially independent is a goal everyone wants to attain and certainly, you won't like to commit any financial mistake that will make that goal unachievable.

As you already know, it is easy to make financial mistakes while you are getting the money. However, correcting these mistakes can be very difficult if you don't realise them early enough.

Financial blunders like splurging or overspending on unnecessary items can be fixed if it's not too late.

However, there are other money decisions that one could regret forever. Here are five of such financial decisions.

1. Not paying off your debt before retirement

Your retirement saving is meant to take care of you when you are no longer active to work. As a retiree, you'll need your pension to survive.

However, if you go into retirement with a load of debt, you'll likely regret having the debt because managing debt with pension won't be a nice financial experience.

2. Not saving for retirement

You think paying off a debt with retirement savings is the most regrettable thing to do? Not having retirement savings is worse than that.

Having a retirement saving is very important and failure to do it will only give you more financial pressure as you get old.

ALSO READ: You won't find yourself in debt again if you try these tips

3.  Spending your money for the wrong reasons

Buying things to impress people is another regrettable financial decision you don't need.

Instead of impressing people with what you really can't afford, it is better you base your spendings on your own goals and values, not those of others. Making financial decisions that favour your goals will make you much happier in future. Wouldn't you rather consider that?

4. Spending instead of building emergency funds

Having an emergency fund is one of the aspects of personal finance that should never be ignored.

Nobody prays for an emergency to happen, but when it happens, it has to be taken care of.

Imagine someone who loses his job and does not have any saving to rely on while he searches for another job. This is where emergency funds play a big role.

Learn to save for rainy day because you won't like to learn it the hard way.

5. No financial plan and goals

Without a financial plan, you might find it hard to achieve your financial goals.

If you have no financial goal or plans for yourself, there is a high chance that you might be in one spot financially for a long time causing you to be financially stagnant.

Having financial goals helps you have a plan to achieve these goals.