The cost of delayed financial action and how to avoid it

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Subscribe to enjoy similar stories. What is the one important thing you can do now to take charge of your financial future? During a financial planning discussion, a client realized he had several major actions to take to streamline his finances. Although everything was clear, he was slightly overwhelmed and didn’t know where to start.

To ease his anxiety, I asked him one question: What is the one most important thing you can do now to start with? In an epiphany, he realized that rather than getting swamped by the actionable list, he needed to figure out what was the one important thing he could do in the present. We agreed on the first step and set a deadline for it, with a weekly reminder email prompting him to take timely action. From a decade-long experience in the financial planning profession, I can say with certainty that delayed action differentiates people who have chaotic financial lives from people who have gradually built long-term wealth over the years.

Procrastination is the bane which prevents people from accomplishing things in life. And, it costs a lot when it comes to finances, as money has a time value to it. The longer the delay, greater the financial loss.

Delayed action stems from not just decision paralysis. People are too busy and distracted in their lives, lacking willingness to take suitable financial action at the right time. Also Read: Cut the clutter: The art of subtraction to simplify your personal finance Other examples of delayed action in financial life include: It is axiomatic that delayed financial actions create a long-term ripple effect and prove costlier than inflation or choosing even a few unsuitable financial products.