Are you waiting for a sign to get your financial house in order? Well, consider this it. Procrastination is an unfriendly foe that can make saving and investing much more difficult than they have to be.
You know how the narratives go. You’ll start saving once you get a raise, pay off debt, or once you get that promotion. Tomorrow becomes the next day, and then it turns into next year. Meanwhile, you’ve come up with enough excuses to sink the Titanic, are sorely behind in retirement savings, and aren’t in any better financial shape than when you started.
If you’re already thinking up the next reason why you need to put off dealing with your finances, stop now and read the rest of this article!
More Time = More Money
The primary motivation to stop procrastinating is simple. The sooner you put your money to work for you, the more you can save, and the longer your savings has to grow. These are moves that ultimately increase your initial investment, allow for greater potential returns, and boost your net worth.
This is the power of compounding—or as Albert Einstein called it—the eighth wonder of the world. When you make an initial investment, you earn interest. When you earn interest on that interest, this is known as earning compound interest. Essentially, your principal continues to increase over time, broadening the returns you can capture. The longer you are invested, the greater the potential capture.
Debt is a Debbie Downer
Did you know that Americans has a $0 net worth? This doesn’t mean they might not have any money in the bank, but simply that they owe more than they own. Trust me; this is not a comfortable place to be.
Unfortunately, debt will always be a drag on your financial success. If you don’t work to get out of debt, saving and investing are simply like patching holes in a rapidly sinking ship. The longer you stay in debt, the more you accrue in interest charges that only add to your liability.
Hire an Expert to Help
One of the most common regrets we hear from many of our new clients is that they waited so long to hire a financial planner. They wish they hadn’t left their future in the hands of luck or “someday†or empty “tomorrows.†Now, they’re playing catch-up and kicking themselves for putting off handling their finances.
Luckily, you can work to overcome financial procrastination. What better way than to ring in the New Year with a fresh mindset, a fresh start, and a game plan to make your finances a priority?
Cheers to a New Year and a brighter financial future!
The views expressed represent the opinion of Uncommon Cents Investing. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Past performance is not indicative of future results. Investment Advisory services offered through Uncommon Cents Investing, a Registered Investment Adviser.
