Why procrastination can damage your future wealth

Do you struggle to motivate yourself when it comes to certain financial-related tasks?

If you do, you certainly aren’t alone. More people than you probably think, while they appreciate how important such tasks are, can be reluctant to knuckle down and get them done.

There’s no one reason for this, and no simple solution to curing any procrastination blues you may be struggling with.

Here’s what I think are the main reasons for inhibition, why a desire for perfection could be acting as a block, and some simple steps to overcome any reluctance you have to get financial tasks done.

Making financial decisions can be intimidating

Encouraging you to make important decisions about your finances (and, ultimately, your life) is central to my role as a financial planner.

Understandably, some people don’t find this very easy. Some of the most common reasons for delay and procrastination include:

• The difficulty of imagining your circumstances 30 or 40 years in the future.
• Having to think about your own mortality and how loved ones will cope after your death.
• A natural reluctance around making any kind of financial decision that could entail an element of risk, such as investing money.

Furthermore, making decisions about your future can take you out of your comfort zone. After all, you may be earning a good salary, paying your bills, and enjoying a decent quality of life. So, it’s understandable that having to think about a time when that may not be the case may be unsettling.

There are some important financial decisions that you need to make

Financial planning, by definition, is all about ensuring you have the right plans in place to:

• Secure your financial future
• Protect yourself and your loved ones
• Ultimately enjoy a comfortable retirement.

The best way to appreciate the importance of your decisions is to think about what your future would look like without any planning.

Once you start thinking like this, you will soon realise that the alternative of simply leaving things to chance and reacting to events as they happen – rather than planning for them – can create insurmountable problems. You may regret not grasping the nettle and planning your future when you had the chance.

You don’t need to achieve perfection

One common reason for procrastination and delay in carrying out certain tasks is the fear of getting it wrong or making a mistake.

As well as pointing out that one of my roles is to ensure you don’t, I would also add that not everything needs to be exactly right from the word “go”.

Former prime minister, Winston Churchill, once said that “perfection is the enemy of progress”. Given his political career, it’s certainly a code he lived by personally. But, more importantly, he was also correct in that constant fine-tuning, or worrying about not getting everything right the first time, can prevent you from doing anything at all.

The great thing about financial plans is that they can be amended. Indeed, I’d go as far as to say that your plans should change as your circumstances evolve.

It’s much easier to amend a plan that’s already in force than to have to start from scratch without one.

Financial procrastination tends to occur in two particular areas

In my experience, there seem to be two common financial planning issues that clients struggle with when it comes to making any firm commitment.

1. Planning for death or incapacity

The first issue concerns the reluctance to sort out planning measures related to your death, or your becoming seriously incapacitated.

These can include:

• Completing an “in case of emergency” (ICE) document
• Making a will
• Setting up a Lasting Power of Attorney
• Filling out pension nomination forms.

Failure to carry out any of these tasks could leave your family facing administrative and financial issues when you die, or if you are seriously ill and unable to look after your own affairs.

It’ll be a time of high emotional stress for them, which will only be accentuated if your financial arrangements are not in order.

2. Planning for your own financial future

While the first issue and area of procrastination will tend to have an adverse effect on the wellbeing and peace of mind of your loved ones, the second is more liable to leave you personally with nagging doubts and worry.

Knowing that you have plans in place will remove a lot of the concerns that you may have about your future, particularly during the time after you have stopped working. Without them, you’re potentially leaving your future lifestyle to chance.

As you have already read, you don’t need to come up with a perfect plan. The important thing is to have an outline idea of your financial goals and what you want your future to look like.

If anything, a plan that is too detailed at outset can be restrictive. It can be far better to look to simply create an initial framework that can then be adapted throughout your life journey as your circumstances and objectives change.

The comfort you get from doing something

One effective way of motivating yourself to complete outstanding financial tasks is to consider how happy and relieved you’ll be once you have completed them.

After all, ticking off items on any kind of to-do list is always satisfying. So, taking tangible steps to help protect your loved ones and plan for your future is likely to boost your sense of wellbeing and personal satisfaction.

You should also bear in mind that you won’t be making these decisions in isolation, or without any strong evidence that you’re doing the right thing.

We can use cashflow forecasting, financial illustrations, and detailed discussions to ensure you are making informed choices about your future.

Get in touch

If you’d like to talk through your own financial plans, or any finance-related decisions that you’re struggling with, then please get in touch.

You can call me on 07769 156 250.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Equity investments do not afford the same capital security as deposit accounts.