The Cost of Procrastination


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 potentially may cost money—particularly when investments and financial decisions are put off.

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 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’sbalance is higher at the end of 20 years because his account has more time for the investment returns to compound.


Featured Posts
Recent Posts
Archive
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Google+ Basic Square

34 Ledgelawn Dr  |  Little Rock, AR  |  72212

Tel: 501.626.5417

Fax: 501.421.8401

RCarrus@AnnuityAlly.org 

CONTACT ME

Fixed and Indexed Annuities are generally considered long term investments. This is not a solicitation to buy or sell. Before investing or sending money to any financial professional, investors should carefully consider the investment objectives, risks, charges and expenses of the annuity contract. The annuity contract provides this and other important information and should be read carefully before investing. All guarantees are based on the claims-paying ability of the issuing company. Withdrawals are subject to income tax and prior to age 59 1/2 a 10% federal penalty tax may apply. Not all annuities and riders are available in all states. Contact Annuity Ally at (501) 626-5417 to speak with an Annuity Ally expert. Annuity Ally employees are qualified Licensed Agents, who will in turn send you free of charge and at no obligation additional product specific information. AnnuityAlly.org is an information resource only and accepts no responsibility for any investment made based on information on this website or based on recommendations made by Licensed Agents. The use of product information or trademarks on this website does not in any way imply sponsorship or endorsement by the trademark holder or companies whose products are featured.

Designed & Created by CROSSBOUND INTERACTIVE MARKETING

  • Grey Facebook Icon
  • Grey Twitter Icon
  • Grey LinkedIn Icon