If you’ve ever felt a sick feeling in your stomach at the sight of a pile of unopened bills, you’re not alone.
Financial procrastinators easily become overwhelmed by the task of managing their finances, and not taking action seems like the easiest option.
But it comes with many consequences, experts say.
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“I’ve seen how financial procrastination can creep up on people. Financial decisions“But procrastinating can lead to bigger problems,” said CEO and founder Rhett Stavendek. Use the plan.
“Paying only the minimum on your credit card is a sure sign of financial procrastination,” he says. “While it may seem like a good way to get control over your monthly expenses, it often means avoiding the bigger problem of debt.”
“Some of my clients have done this and ended up paying a lot of interest over time. We worked together to come up with a plan that allowed them to pay off their debts faster,” Stavendek said.
“The consequences of financial procrastination are severe,” he says. “For example, delaying saving for retirement means you won’t have enough money when you need it most.”
Here are some key signs that you’re a financial procrastinator and why it could ultimately cost you dearly.
See also Financial mistakes to avoid in the next decade of your life.
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Delaying bill payments
“Financial procrastination often manifests itself in a few different ways,” says financial advisor and Capital Max“One common sign is delaying paying bills, which can result in late fees and interest accumulating.”
“The financial impact of postponing payments is severe,” he says. “Paying bills late can lower your credit score, making it harder to secure loans or credit cards with favorable terms.”
Erwin Vico, CEO Slick Cash Loansagrees: “If you’re someone who constantly puts off opening and reviewing bills, bank statements, and other financial statements, it could be a sign of financial procrastination.”
“This includes organizing and managing tax returns,” he said.
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Delays in tax planning
“Procrastination can lead to higher taxes,” Vico said. “For most salaried workers, tax planning is a rushed action. Last-minute tax planning can lead to higher taxes.”
“Many individuals pay lower taxes than necessary or take advantage of deductions that do not apply to them,” he says, “which can result in higher taxes and penalties. Tax-saving investments are best completed before the financial year begins in April.”
“That way you can file your taxes on time in July,” he said. “You don’t have to file your taxes at the beginning of the year, but you should at least take the time to file carefully.”
Unable to save for retirement
If you don’t consistently save for retirement, you may not have enough money to maintain the lifestyle you want once you retire, said financial expert and head of growth Denis Shirshkov. Go Summer.
“This could mean working longer or lowering your standard of living in retirement,” he said. “To combat financial procrastination, you need to develop positive financial habits.”
Not checking your bank statements regularly
Not regularly reviewing financial statements is also a sign of financial procrastination, according to Stavendek: “I had a client who was avoiding looking at her bank and investment accounts because she didn’t want to face the reality of her financial situation.”
This could lead to missed opportunities and fraud, he said. [my company]To avoid these pitfalls, I always encourage my clients to stay on top of their accounts.”
Missing out on investment growth opportunities
“Delaying investment can lead to huge opportunity losses,” Shirshkov said.
“The power of compound interest means that the earlier you start investing, the greater the returns you’ll reap,” he says. “Procrastinators miss out on these benefits and could seriously undermine their future financial security.”
Forget about saving for emergencies
According to Godour, not saving for emergencies can lead to a shortage of funds in a crisis, forcing individuals to turn to high-interest debt.
This is especially important because emergencies happen all the time: your car breaks down, you have to make a surprise trip to the emergency room, your pet gets sick — all of these things happen unexpectedly and can devastate your finances if you don’t have an emergency fund in place.
“Failure to budget properly leads to unchecked spending, rising debt and a vicious cycle of financial instability,” Godour said.
He said understanding these signs and consequences is crucial in taking proactive steps to overcome financial procrastination: “Personally, I have seen that timely financial management can transform an individual’s life, ensuring they achieve their financial goals and maintain stability.”
“Addressing financial procrastination will not only improve your financial health, but it will also increase your overall happiness,” he said.
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This article was originally published on GOBankingRates.com: 6 Key Signs You’re a Financial Procrastinator and How It’s Costing You
