Ramit Sethi Tackles People's 8 Biggest Money Regrets
New York Times bestseller and personal finance expert Ramit Sethi has spent the past 20 years helping everyday people get rich. During that time, he has heard many times about the biggest money regrets people have.
He recently explained these regrets to his over 1 million subscribers in the YouTube video, "After 20 Years in Personal Finance, THIS Is What People Regret Most."
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Here are the eight biggest money regrets Sethi has heard most and what to do instead.
1. Not Investing Soon Enough
Sethi noted that money regrets are hard, not because of the potential money lost but because of the time and relationships affected by the decisions.
A common regret Sethi has heard in his 20 years in personal finance is that people didn't invest soon enough. He explained that there is never a perfect time to invest and that not investing is usually driven by fear.
To overcome this fear, Sethi encouraged his viewers to start now. He said start small, as even $50 a month will still make a difference. The idea is that the sooner an investor starts, the sooner they can take advantage of compound growth, which is built on time in the market, not timing the market.
2. Buying Too Big of a House
The next common money regret Sethi listed was buying too large of a house. He recommended that hopeful homeowners run their numbers to determine if the house is truly affordable, taking into account additional expenses such as taxes, insurance, maintenance and other fees.
Undoubtedly, housing in many regions has become unaffordable. According to Realtor.com, average monthly housing costs can reach $3,500, which is equivalent to 49% of the median gross monthly income of first-time homeowners between the ages of 25 and 44 in America.
Instead of buying a home that eats up a large portion of monthly income, Sethi recommended considering other options, including selling.
3. Crypto FOMO
The next big regret, Sethi said, was one that has cost people tens of thousands of dollars. It involves the regret of not investing in bitcoin or other crypto or investing in a scam. He explained that it can be boiled down to people seeing someone else get rich and wanting the same.
However, he cautioned, "Speculation is not the same as investing." He told his followers that investing 5% to 10% of a well-diversified portfolio into speculative investments is likely OK, but that they should be following the fundamentals of investing by automating savings, investing in low-cost funds and giving it time.
4. Debt
The next regret expressed by many was taking on too much debt. Many people take on thousands of dollars in student loan debt and credit card purchases, only to regret it later.
As reported by Best Colleges, the average student loan debt in the U.S. grew to $39,375 in 2025. Credit card debt has also been increasing. According to Forbes, credit card debt has climbed to $6,715 in 2026.
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Sethi encouraged his followers to avoid the temptation of spending money on credit cards just to get the points. He discouraged viewers from going into debt for things like home renovations, noting that they are a luxury not an investment. Instead, he said people should focus on paying off debt by developing a payoff plan, and then a budget to stay out of future debt for the long run.
5. Not Saving for Big Events
Next, Sethi said that many people regret not saving for big events such as weddings and vacations. Saving for events large and small, particularly ones that are inevitable can help prevent financial hardship down the road.
6. Not Knowing How To Spend It
Not knowing how to spend money is a regret that can "steal the joy from everyday life," according to Sethi. He explained that people often have "spending guilt," prompted by things like money scripts established in childhood, a scarcity mindset and "confusing frugality with virtue." He said instead of carrying the guilt, use money to live a rich life.
7. Never Teaching Kids About Money
Unfortunately, money conversations have often been considered a taboo topic at the dinner table. For generations, parents have remained silent on the topic of finances, never passing on their money lessons to their children. Instead, Sethi encouraged parents to strengthen their own relationship with money and model healthy habits for their children, teaching them finances along the way.
8. Letting Your Partner Do Everything
The final money regret people expressed to Sethi was letting their partner do everything. The personal finance expert encouraged viewers to be honest about finances building an equal partnership, helping to prevent resentment or feelings of isolation by one partner.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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