Breaking Free from Financial Auto Pilot & Procrastination

You want your financial life in order, but that seems like a lot of work. Maybe you will get to it one day… Things are fine for now.

Time slips by.

A month turns into a year.

Deep down, you know that you need a savings plan and set aside time to check out that 401(k) allocation… You’ll do it soon though.  

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The repercussions of procrastinating financial decisions, like establishing your regular investment plan, are staggering.

Don’t believe me?

Let me tell you a little math-based story…

Johnny is 26 years old and has an extra $12,000 a year to invest. He knows he wants to start but waits around 2 years before he finally gets himself to actually open the account.  

Johnny is 28 years old now. Between the time he was 26 and when he retires at age 65, those two years could equal over $300,000 of missed growth opportunity (7% return assumption). Yes, he missed out on $24,000 of contributions, but what hurt him the most?

The compounded growth he didn’t receive.

Let’s be honest – we’re only fooling ourselves when we downplay the significance of our financial delays.

So what do you need to do? You need to stop just living your life on auto pilot!

Switch off “default” mode, create a plan, and act on it.

 

Here Are 5 Action Steps to Get You Started:

  1. Find an advisory firm. It’s much easier to find a fiduciary CFP® through NAPFA, or you can see if your qualified to be a client with my team at Hixon Zuercher.
  2. Ask them how much you need to save to reach the goals you have specified. 
  3. Ask your advisor to propose investments that are within your risk tolerance. 
  4. Open investment accounts and link your bank for automatic regular investment or invest through your employer retirement accounts. 
  5. Monitor on occasion with your advisor.

It might seem like I oversimplified it a bit… and perhaps I did.

But really, that pretty much is the gist of it.

Once you get yourself out of auto pilot and take action to set up your investment plan, you’ll find yourself relaxing a little bit.

You’ll have more peace of mind knowing that you have a plan in place, and your savings/investments are accumulating each month without you having to think about it.  Then, you can go back on auto pilot for a while knowing you have it taken care of (and not feel guilty for it at all).

Trust me, once you get there, it feels good.