“Don’t put off till tomorrow what you can do today.”
Let’s chat bluntly about how putting things off can mess with our quest for wealth.
Procrastination comes to visit all of us from time to time. It’s the act of delaying or postponing tasks despite knowing their importance. It’s often due to avoidance from a lack of motivation or time mismanagement. If left unchecked, it eventually leads to decreased productivity, increased stress, and the procrastination bushfire roars back into life.
A slippery slope.
This sounds like an obvious statement, but ‘putting things off’ can be a significant hindrance when we are all trying to grow wealth.
We know that delaying or avoiding financial actions will have detrimental effects that you’ll be kicking yourself for in years to come.
Here are some of the ways in which procrastination can work against you.
Missed Investment Adventures: Time is the secret sauce in investment growth. Delaying means missing out on the magical compounding effect. Start investing as early as practically possible and allow time in the market to help that wealth grow.
Debt’s Sneaky Takeover: Procrastination can unleash long-term bad debt on us. Putting off bills and credit card balances can turn them into wild beasts that wreck our wealth-building plans.
Retirement Planning Delayed: Waiting too long to start retirement planning can severely impact the ability to build a sufficient nest egg for retirement. The longer one delays saving for retirement, the larger the required contributions become to achieve the same retirement goals.
Lost Savings: Savings opportunities are generally hiding in plain sight, like camouflaged treasures. Compare rates, find deals, and refinance to unearth those extra bucks and grow your stash.
Missed Savings Opportunities: Putting things off can lead to missed chances to save money on everyday expenses. Not comparing insurance rates, utility providers or refinancing loans can result in higher expenses over time.
Financial Discipline: Procrastination can foster a lack of financial discipline making it easier to succumb to impulsive spending or ignoring budgeting efforts. Say no to impulsive spending and embrace your money-savvy moves.
Goals, Goals, Goals: Without clear financial goals, we’re lost in a sea of financial FOMO*. Grab it like a treasure map, set goals and sail on towards your wealth-building dreams.
*Fear of Missing Out
Ignoring Investment Diversification: This is like having a magical shield for your money. Diversification helps spread risk and protect against market volatility and it helps guard against financial storms.
Missed Career Advancement Opportunities: A stagnating career can limit income potential and hinder the ability to save and invest more. Postponement can lead to missed chances for career growth and salary advancements.
A few Bite Sized Basics to combat ‘putting it off’.
In most cases it’s not going to be easy; the habits you are in have most likely been with you for years, so overcoming financial procrastination requires discipline, commitment, a proactive mindset, and a plan to work with. Here are some of the main points on which you can build strategies to combat procrastination and boost wealth-building.
- Set Clear Financial Goals
- Create a Financial Plan, with the help of an expert.
- Take Immediate Action
- Seek Professional Advice
- Automate Savings
- Stay Educated
- Stay Accountable
By overcoming procrastination and adopting proactive financial habits, individuals can set themselves on a path to build wealth and achieve their long-term financial objectives.
Knowledge is Power
Owun is the Senior Education Specialist at the Blue Wealth Property Academy and hosts The Clever Investor podcast. He has worked in finance and property for well over 20 years and is known for being able to explain the complex world of wealth creation easily.