6 Key Signs You’re a Financial Procrastinator and How It Could Cost You
Written by
Cindy Lamothe
Edited by
Rebekah Evans
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If you’ve ever looked at a big pile of unopened bills and felt that queasy, sick feeling in your stomach — you’re not alone.
Financial procrastinators are easily overwhelmed by managing their money, and taking no action seems like the easiest choice.
But it’s one that comes with many consequences, according to experts.
“I’ve seen how financial procrastination can sneak up on people. It’s common to feel overwhelmed by financial decisions, but putting them off can lead to bigger problems,” said Rhett Stubbendeck, CEO and founder of Leverage Planning.
“One clear sign of financial procrastination is only paying the minimum on credit cards,” he said. “It might seem like a good way to manage monthly expenses, but it often means avoiding the larger issue of debt.”
“I had a client who did this and ended up paying a lot more in interest over time. We worked together to create a plan that helped them pay off their debt faster,” Stubbendeck said.
“The consequences of financial procrastination are serious,” he said. “Delaying retirement savings, for instance, can mean not having enough money when you need it most. “
Here are more key signs you’re part of the financial procrastinator’s club — and how it can end up costing you big.
Also see the top financial mistakes to avoid based on your decade of life.
Delaying Paying Bills
“Financial procrastination often manifests through several tell-tale signs,” said Justin Godur, finance advisor and founder of Capital Max. “One common indicator is delaying the payment of bills, which can result in accumulating late fees and interest charges.”
“The financial consequences of procrastination are severe,” he said. “Delayed bill payments harm credit scores, making it challenging to secure loans or credit cards with favorable terms.”
Erwin Vico, CEO of Slick Cash Loans, equally agrees. “If someone constantly puts off opening and reviewing their bills, bank statements, and other financial statements it could be a sign of financial procrastination.”
“This also includes organizing and managing your tax returns,” he said.
Delaying Tax Planning
“Procrastination can lead to higher taxes,” Vico said. “Tax planning is a rushed activity for most salaried individuals. Last-minute tax planning could mean higher taxes.”
“Many individuals pay lower taxes than they need to or use deductions that do not apply to them,” he said. “This will lead to higher taxes and penalties. It is best to finish investing in tax-saving investments at the start of the financial year in April.”
“That will help you file taxes on time in July,” he said. “You don’t need to file taxes at the beginning of the year, but you should at least give yourself time to file your return carefully.”
Failing To Save For Retirement
Failing to save consistently for retirement can result in insufficient funds to maintain your desired lifestyle in retirement, said Dennis Shirshikov, finance expert and head of growth at GoSummer.
“This could mean working longer or reducing your standard of living later in life,” he said. “Addressing financial procrastination involves adopting proactive financial habits.”
Not Checking Bank Statements Regularly
According to Stubbendeck, another sign of financial procrastination is not checking financial statements regularly. “I’ve had clients who avoided looking at their bank or investment accounts because they didn’t want to face the reality of their finances.”
He said this can lead to missed opportunities and even fraud. “At [my company], I always encourage clients to stay on top of their accounts to avoid these pitfalls.”
Missing Out on Investment Growth
“Delaying investment can result in significant opportunity costs,” Shirshikov said.
“The power of compounding interest means that the earlier you start investing, the greater your potential returns,” he said. “Procrastinators miss out on these benefits, which can drastically reduce their future financial security.”
Forgetting To Save For Emergencies
According to Godur, not saving for emergencies results in inadequate funds during critical times, forcing individuals to rely on high-interest debt.
This is especially critical because emergencies happen all the time. A car breaks down, an unexpected visit to the ER, a sick pet — all of these things come when you least expect it and can derail your finances if you don’t have an emergency fund in place.
“Failure to budget properly leads to uncontrolled spending and mounting debt, creating a cycle of financial instability,” Godur said.
He said that understanding these signs and consequences is crucial for taking proactive steps to overcome financial procrastination. “Personally, I’ve seen the transformative impact of timely financial management on individuals’ lives, ensuring they achieve their financial goals and maintain stability.”
“Addressing financial procrastination not only improves financial health but also enhances overall well-being,” he said.
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