Why “I’ll deal with it later” costs more than you think
Your KiwiSaver’s still sitting somewhere and you have no idea, how much, whose managing it or whether you’re in the right fund, but you can deal with it later right.
Your life insurance is something the bank recommended you take when you got your mortgage and you’ve been meaning to check if that’s actually enough or if it will even pay out. You’ll get to it.
You don’t have a will.
You’re only 32, plenty of time to sort it out, what does it matter at your age anyway.
Later
It’s one of the most expensive costs and when it occurs, people wish they had put a lot more focus on the ‘Do it now’ rather than listen to their ‘Do it later’ voice.
Every month you wait, the cost goes up. Not because of penalties or late fees. Because of opportunity cost, compound interest working against you instead of for you.
Insurance reviews become a ‘Sorry it’s too late to cover you now’ conversation and that will you never got around to, well not having one is like planting a minefield for your partner or family to navigate through later.
You’re not putting this off because you’re irresponsible. You’re putting it off because you’re capable. Capable people can always handle things later. Until later gets expensive.
Why capable people procrastinate on money
You’re not avoiding these tasks because you’re lazy. You’re avoiding them because:
They feel unnecessary.
These aren’t fun tasks, so they easily get pushed out. Reviewing expenses, tweaking the budget, dealing with the emotional pulls that have one person focus too much on saving at the expense of enjoying today and the other wanting to spend because they prefer to live in the moment, these aren’t enjoyable conversations with each other and what will they achieve anyway.
There’s no immediate consequence.
Missing a credit card payment or having a transaction process for that subscription you keep meaning to cancel might sting you today. Not reviewing your KiwiSaver costs you nothing this afternoon. Your brain prioritises the immediate threat. Slow leaks never trigger any urgency.
You can always do it tomorrow.
This is the capable person’s trap. You know you can handle it, so there’s no pressure to handle it now. Pay keeps turning up so next week’s bills are fine. Next months is probably okay too. Next year? I can look at that later.
The 2 hour audit you need to prioritise
Block two hours this weekend. Not next month. This weekend.
First 30 minutes:
List every financial task you’ve been putting off. KiwiSaver, insurance reviews, loan repayment timelines and progress, rate comparisons, personal or family budget. Get it all out of your head and onto paper.
Next 30 minutes:
Acknowledge that each one is actually costing you. KiwiSaver sitting in a low-growth default option. The insurance you haven’t compared and are either over paying or under insured. Reach out to your advisors and get them sorted.
Final hour:
Break down your budget, what’s coming in? What’s going out? What are your financial goals and how much do you need to be squirreling aside so these happen? What changes can you make so your money goes where you value it most instead of just going, this is where the gold is because these changes are what defines your plan and moves you into your future potential.
Later costs more. In dollars, in missed growth, and in peace of mind.
I can help you make sense of your personal finances, not so much your KiwiSaver and Insurance but I know some great people who can.
Reach out to me if you need help in any capacity mentioned. That’s always a good first step if it makes sense but still feels a little overwhelming or you’re unsure how to get things moving.
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