Procras-tin-A-A-tion Is Making Me Wait

Read 4.5-minutes

• Why do we procrastinate?

• Lost time

• Lost Dreams

• Lost Money

• Just STOP IT...I mean START IT!

"I am the master of my fate, I am the captain of my soul." -William Ernest Henley

Anxiety. Unease. Worry.

And a pinch of aggravation to round it all out.

For millions of Americans every year, the tax filing deadline points to a much bigger issue. An issue so pervasive that it's the subject of internet memes, stand-up comedy routines, and entire self-help books.

I'm talking about procrastination.

Before you snooze this email to read it, maybe later, consider this: In 2018, over 8.9 million people paid penalties to the IRS because they didn't prioritize filing their taxes. This is just one example of how procrastination can lead to severe consequences, particularly in tax-related matters.

Yikes!

Today, we're going to explore the side effects of procrastination and how to overcome them.

Procrastination is a scourge that can have serious repercussions on your life. A 2008 study (around the time of the real estate crash) found that 40% of people have experienced some financial loss due to procrastination. Understanding why you procrastinate and how it adversely impacts your life can help you avoid those adverse outcomes. Procrastination Statistics Show that Procrastination is Increasing

Why do we procrastinate?

This will vary from person to person, but there are some general reasons that many people put things off:

• - Fear of facing something we don't want to acknowledge. Like facing the prospect of becoming an empty nester when your last child leaves for college. There's clearly the joy of seeing your children launch into adulthood, but suddenly, you have to acknowledge moving into the next phase of your own life. So you procrastinate cleaning out their vacant bedrooms or downsizing your space.

• - Not having to deal with any fallout if something goes wrong. This provides a sense of control over the outcome, as opposed to losing control once we engage in a task. For example, Chic, my neighbor, put off getting his tax return prepared because he was scared of what the balance due was going to be, and he didn't have the funds available to pay that tax bill right away. (Editors note: he does not have real estate investments so that he won't be a client of ours).

• - Good ol' perfectionism. If you're the type of person who needs everything to be just perfect in every way, then procrastination helps you avoid disappointment when things don't turn out as planned.

• - Worried about failing at something new. If you never try, then there can be no failure.

Whatever the reason for procrastination, it comes with negative side effects.

Lost Time

This is the most obvious downside to procrastination. Time is precious, and when it's gone...my husband, Lynn, will NEVER get 1978 back.

Think about how you waste time when you procrastinate. How many hours have you lost in the past year or decade putting off doing important things? It can be a bit sickening to consider. Not only is productive time lost, but there's also the psychological impact to deal with, as most of us tend to get stressed and frustrated about letting time slip through our fingers.

So, before avoiding those essential tasks in favor of your favorite leisure activity (Netflix binges are tempting), turn it into a "reward" for finishing the important task you're putting off instead. In other words, change the way you see necessary tasks, using the leisure activity as the dangling carrot to motivate you to get things done.

Lost Opportunities

While putting off the laundry for a week may not cause you to miss out on a life-changing opportunity, the fact of the matter is that procrastination does cause you to miss out on things. This is especially true in situations involving work-life balance. For example, that tedious report you put off writing until Friday afternoon may mean you miss out on your kid's soccer game because you're still at work.

Procrastination robs you of flexibility in both your schedule and your finances. In effect, you are giving up control of your life when you procrastinate because you become subject to the tyranny of the clock and the demands of others on your time. But when you take control and overcome procrastination, you feel empowered and in charge of your life.

Putting off that decision about a new job opportunity may mean the job is no longer available by the time you make up your mind. Or habitual procrastination gets noticed by the boss, and you might lose out on an opportunity for promotion. Or your best friend approaches you with a fantastic business opportunity, but you miss the time window to join in because you put off talking to your spouse about it out of fear of what they'd say.

Lost Dreams

What's your dream in life? What steps have you taken to make it a reality?

Many people have a "someday/maybe list." Those things they'll do when the time is right, the stars are aligned, they win the lottery, or the kids are grown. There's a change they want to make in the world, a business they want to start, a career change they wish to embark on, or any number of other things, but they never take the first step.

My son, Redd, has a retirement plan—Win the lottery (I don't think he is buying tickets—he's procrastinating on that too).

Not all goals and dreams are practical, of course. But if they are, start taking the steps toward achieving them. Don't let 20 years go by and then look back and regret that you never took action.

Lost Money

Putting off that call to your mortgage broker can mean paying higher mortgage payments for the life of your home loan.

Failing to make that 60-second call to Human Resources could mean missing out on the 50% company match into your 401k.

Delaying that call to your tax professional could mean paying penalties to the IRS (ahem...).

The financial consequences of procrastination are numerous and varied, stemming from restricted time windows, changing marketing conditions, legal requirements, and other factors.

What about the financial consequences of procrastination with tax matters? Do just about anything late with the IRS, and you will most certainly incur a monetary penalty in the form of additional interest, lost tax credits, and sad stories to tell at this summer’s family reunion.

Just STOP IT--I mean START IT!

Learn to recognize the things that you procrastinate the most about and put together a plan to address that procrastination. You will undoubtedly find that life becomes more fulfilling and that new opportunities arise along the way. And you'll have more money in your pocket, too.

So, I need to say it: Tomorrow morning, get up and make your bed! That's right, a small win to start every day with. Now you have momentum. Great things lie ahead! The sense of accomplishment that comes from these small wins is a powerful motivator to keep going.

BE THE ROAR not the echo®

To getting things done,

Janet, The Tax Wizard