The Cost of Procrastination
Taking early action can have long-term financial benefits.
Some of us share a common experience. You're driving along when a police cruiser pulls up behind you with its lights flashing. You pull over, the officer gets out, and your heart drops.
“Are you aware the registration on your car has expired?”
You've experienced one of the costs of procrastination.
Procrastination can cause missed deadlines, missed opportunities, and just plain missing out.
Procrastination is avoiding a task that needs to be done—postponing until tomorrow what could be done today. Procrastinators can sabotage themselves. They often put obstacles in their own path. They may choose paths that hurt their performance.
Though Mark Twain famously quipped, “Never put off until tomorrow what you can do the day after tomorrow,” we know that procrastination can be detrimental, both in our personal and professional lives. Problems with procrastination in the business world have led to a sizable industry in books, articles, workshops, videos, and other products created to deal with the issue. There are a number of theories about why people procrastinate, but whatever the psychology behind it, procrastination may cost money—particularly when investments and financial decisions are put off.
As the illustration below shows, putting off investing may put off potential returns.
If you have been meaning to get around to addressing some part of your financial future, maybe it's time to develop a strategy. Don't let procrastination keep you from pursuing your financial goals.
Early Bird
Let's look at the case of Cindy and Charlie, who each invest $100,000.
Charlie immediately begins depositing $10,000 a year in an account that earns a 6% rate of return. Then, after 10 years, he stops making deposits.
Cindy waits 10 years before getting started. She then starts to invest $10,000 a year for 10 years into an account that also earns a 6% rate of return.
Cindy and Charlie have both invested the same $100,000. However, Charlie's balance is higher at the end of 20 years because his account has more time for the investment returns to compound.
This is a hypothetical example of mathematical compounding. It does not reflect any specific investment or account, and past performance is not indicative of future results. But it does highlight a critical truth: time is one of the most powerful tools in a financial plan.
The Sooner, The Better
Whether you're thinking about starting to invest, consolidating old retirement accounts, or scheduling time with a financial advisor, the best time to act is now.
At OneDigital, we believe that building financial confidence doesn’t happen overnight—but it does start with one step. Our advisors are here to help you create a plan tailored to your needs, so you don’t have to go it alone or keep pushing decisions off until "someday."
The cost of procrastination can add up. But with the right guidance and a proactive mindset, the path to financial well-being is well within reach.
Let’s take the first step together.
If you’re interested in learning more, schedule a time to meet with our team and take the next step toward financial clarity and growth.
Looking for more information or to speak with an advisor? Our Financial Academy page has you covered! Find helpful resources to help you do your best work and live your best life.
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Investment advice offered through OneDigital Investment Advisors LLC (“ODIA”). Insurance products are available through OneDigital Insurance LLC., an affiliate of ODIA, or by Investment Advisor Representatives of ODIA in their separate capacities as independent insurance agents.
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