Procrastination and Finances

Yet another example of what happens when I procrastinate has reinforced my belief that as a tactic in life procrastination is highly underrated. Many things in life will either go away, or rectify themselves if you give them time.

Can procrastination be a viable financial planning concept?

Procrastination Works

In these situation procrastination may actually help you out:

• Large purchases such as cars or houses. By not doing anything you may actually end up keeping large amounts of money in your investment vehicles and gaining value, and you aren’t paying down large debts that you have accrued.
• Selling stocks when they are down. If you procrastinated through this last bit of bad times, you most likely held onto some stock that will regain it’s value and appreciate more.
• Get rich schemes from friends and family, if you wait long enough you will have “missed the boat” but will still have your money too.

Procrastination is Very Bad

When is procrastination a bad strategy?

• Ignoring paying of bills, this is a very bad thing. If you don’t pay your credit card or your utility bills or any other monthly bills, you will end up with a large debt and most likely living in a dark and cold home.
• Forgetting to put money in your RRSP until February 33rd is a bad use of procrastination, put your RRSP money in as early and often as you can.
• Paying any of your taxes late (municipal, federal, etc.,) is really kind of bad too (luckily in Canada we don’t have the IRS and their sweeping powers, however the CCRA can do stuff to you too).
• Not having an emergency plan financially.

Really?

I guess you can see that procrastination may not be the best concept for your financial plan, but remember it can be your friend sometimes, just don’t use it as your only weapon or tactic in your Financial Plan. Pay what needs to be paid now, but think about those big purchases and maybe see if time can help you with that part of your plan.