Don’t Let Life Pass You By…

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

5-minute read

Procrastination is a scourge that can have serious repercussions on your life. In fact, a 2008 study found that 40% of people have experienced some financial loss due to procrastination. This could be as simple as missing a bill payment and incurring late fees, or as significant as delaying a career move and missing out on a promotion. Understanding why you procrastinate and how it adversely impacts your life can help you avoid those negative outcomes.

Why do we procrastinate?

This will obviously 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 becoming an empty nester when your last child leaves for college. There's the joy of seeing your children launch into adulthood, but suddenly, you must acknowledge moving into the next phase of your own life. So, you procrastinate cleaning out their vacant bedrooms or downsizing your space.

- I do not have to deal with any fallout if something goes wrong. This provides a sense of control over the outcome, compared to losing that control once we actually engage in a task. For example, somebody might put off getting their tax return prepared because they're scared of what the balance due is going to be, and they don't have the funds available to pay that tax bill right away.

- Good ol' perfectionism. If you're the type of person who needs everything to be just perfect in every way, then procrastination helps you to avoid disappointment when things wind up not being so perfect.

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

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

Lost Time

This is the most obvious downside to procrastination. Time is precious; it is truly "the NOW moment." You use it, or you lose it.

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 important tasks in favor of your favorite leisure activity (YouTube dance mashup video 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. The sense of achievement that comes from tackling procrastination head-on is a powerful motivator.

Lost Opportunities

While putting off the laundry for a week may not cause you to miss out on a life-changing opportunity, procrastination does cause you to miss out on things. This is especially true in work-life balance situations. For example, that TPS ("Test Procedure Specification") 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.

Putting off that decision about a new real estate investment opportunity may mean the deal 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 an amazing 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. Seize the opportunities that come your way, don't let them slip through your fingers due to procrastination.

Lost Dreams

What's your dream in life? What steps have you taken toward making it a reality?

A lot of 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 to embark on, or any of several other things, but they never start.

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 vary due to restricted time windows, changing marketing conditions, legal requirements, and more.

What about the financial consequences of procrastination regarding tax matters? Do just about anything late with regards to the IRS, and you will most certainly take a financial hit in the form of penalties, accumulated interest, lost tax credits, etc….

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

Remember, the best way to overcome procrastination is to break tasks into smaller, manageable steps and set specific deadlines for each step. This way, you can make progress without feeling overwhelmed.

If you're procrastinating on dealing with any tax matters in particular, don't delay any further. Take the bull by the horns right this second -- yes, right now – GRAB YOUR PHONE AND CALL YOUR TAX PRO—NOW!

BE THE ROAR, not the echo®

To getting things done,

Janet Behm, The Tax Wizard