Are You a Financial Procrastinator?

Do you find that you delay planning your finances? You may be a financial procrastinator and not know it! Financial procrastination can come in many forms and can apply to retirement savings, savings for major expenditures (children’s college funds), emergency funds (when all of a sudden you need tires for your car) and even day-to-day expenses such as grocery shopping.  Here are some tips to avoid being a financial procrastinator:

Don’t put off what you can do today for tomorrow!
Recognize the need to be in control of your finances. You may be in debt or falling into debt. Either way taking control can help get you out of debt or away from debt traps.

Financial procrastination usually shows itself in some form of debt, but may happen in your everyday life without you even noticing.  Paying a bill late may not seem like a huge deal if it only happens once in a while, that doesn’t mean it may not eventually become a problem.  The more you practice this habit, the easier it becomes to fall into a spiral of debt.

Budget you say
Everyone has heard the term, but what does that mean to the procrastinator?

• Step one: accept you have a problem.
• Step two: make a decision to do something about it.
• Step 3: create a budget. Determine how much income comes in each month and how much is needed for daily expenses.  Try to minimize unnecessary expenses to maximize your monthly financial surplus!

Taking proactive steps to financial control can seriously help minimize the effect debt will have on you and your credit in the long run.  Procrastinating and ignoring the reality may just land you into more trouble than you thought.  Remember: if you got yourself into debt or you think you will be in debt, you need to work on a plan.  Relying on a future happening, like a raise, bonus or even winning the lottery is very poor planning.

Bill paying procrastinator
Maybe you miss the on time payment date or simply forget about a bill, unpaid bills will land themselves in collections, and you will find yourself being harassed by creditors suggesting you pay your bills by any means possible, even if it means you can’t afford gas, food or rent that month. Eventually these accounts may cause a lien on your house, your wages garnished, or your bank account frozen all while interest continues to build on your credit cards and that mountain of debt just keeps growing.  Why go down that road? Set up automatic payments for the minimum balance each month and never miss a payment again!

The future of financial procrastination
We know financial procrastination can lead to little problems and big problems. Maybe because you had a credit card in default so you couldn’t get a loan for the car you really wanted, or when you apply for a mortgage you don’t get the percentage you wanted because your credit score dropped because of missed payments.  It is so important to think about the future when you make any kind of financial decision.  In the moment you might not think putting off that bill a little longer will have any effect, but in the long term it might come back when you least expect it.

Leslie H. Tayne, founder of The Law Offices of Leslie H. Tayne, P.C., assists consumers and individuals with the resolution of their unsecured debts. The firm's flexible and well established policies and procedures have helped thousands of individuals lead a debt-free life. For more information, call 1-631-470-8204 or visit www.attorney-newyork.com