Start NOW! 5 Hacks to Beat Financial Procrastination

Have you been postponing your savings and investments? Are you just too lazy to look up mutual funds and fixed deposits for investing your money? Then, you are one who indulges in financial procrastination. This procrastination can have bad results for your finances in the long run.

Read the article to find out how to get rid of financial procrastination, here are hacks for you to start putting your finances back on track.

Financial Procrastination

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Hack #1: Just Do It

We are not talking about the Nike slogan. Most times people are prone to financial procrastination because they just don’t feel like investing. The reason might be that you think you don’t have enough to invest or you think finances are boring. For some, finances might be unpleasant because they have loans. Whatever your reason, understand that any delay in investing could mean lesser savings for your financial goals like buying a house or for your retirement. The sooner you understand this, the better you will handle your finances.

So, let us face it! You need to start investing. Then, why not do it today? The best way to go about this excuse is to just do it, that is, just start investing. Start by analysing how much you earn and how much you spend. Try to take out money lying in your savings account and invest in better options. You can choose investments that you think will provide better returns. This could be government schemes like Public Provident Fund (PPF), bank fixed deposits or mutual funds.

You do not need to wait for a specific day to start investing in fixed deposits or even mutual funds. Think deposit rates are down and the equity market isn’t great? Then, look at the savings account rates today. They are down to 4%. In fact, State Bank of India recently cut saving account rate to 3.25%. Isn’t that reason enough for you to start investing in fixed deposits that can give you over 6%? You could even consider small finance banks that are giving interest rates of up to 8%.

Once you start investing, you will become interested in knowing how your money is earning returns and how much money you will have many years down the line.

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Hack #2: Choose Investments First

People tend to postpone investments because they think they will need the money for their expenses. Investing will mean that they will not have cash on hand or in their savings account where it will be available all the time. That is why you should always invest first and then spend later. This way, you will postpone unnecessary expenditure because you have less money in your savings account.

What is the best way to do this? Start by investing money along with your Equated Monthly Instalments (EMI). This way, all your money will flow out of your account simultaneously and you will know how much you will have to manage the month. You can try the auto debit facility for making investments in fixed deposits and mutual funds. For Systematic Investment Plans (SIP),the mutual fund house will auto-debit your account every month when you provide your bank account details. In case you have contingencies, you can consider liquidating deposits that have lesser withdrawal penalties.

Want another hack? Try the auto sweep account. This will put your money into fixed deposits automatically. You can choose to sweep out money from the deposit to your savings account in case you need money. How neat is that? Most banks offer auto sweep accounts and the minimum threshold that they sweep into your fixed deposit account is usually about Rs. 10,000.You can choose to increase this threshold if you have more money in your savings account.

It is best to start investing within a week of getting your salary. This will help you plan your regular expenses for the month. In case you don’t want to auto-debit your account, you can consider putting the investments on your calendar so that you don’t forget them.

Also read: How Procrastination Affects Your Finances 

Hack #3: Start Making Goals

A goal is not only buying a car or a house, it could be buying that expensive smartphone or taking a vacation that you have always wanted.Make these goals and note down how much you will need for achieving those goals.

By making goals that are minor will help you start saving money. Since these goals don’t need you to save big amounts of money, it will be easy for you to set aside money for these goals.For example, saving Rs. 50,000 in 6 months for that smartphone might seem easier than saving Rs. 5 Lakhs for that car in 3 years. Once you are comfortable and you achieve those goals, you can consider setting aside money for goals like buying a house or for your retirement. The more goals that you achieve, the better you will be at setting goals and more confident about saving for goals.

You need to draw up an action plan for each of your goals. For example, you can invest in recurring deposits for your smartphone while investing in liquid or short term funds might be more useful if you are saving for a vacation you would like to take in 2 years. The closer your goal, the more careful you need to be with your money. It does not make sense to invest in equity mutual funds for goals that are short.

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Hack #4: Get Rewarded

When we do something right, we love it when someone appreciates it or when we get a reward for completing the work. To avoid financial procrastination and to ensure that you handle your finances in the correct manner, you could reward yourself.

Now, how can you do that? Simple! Whenever you think you have spent enough time on your finances, set aside some money for a simple food treat or an indulgence. This way, you will take care of your finances simply for getting that treat. Not good enough? How about this – whenever your increase your investments by 5%, consider spending 1% more that month. This way, you invest more and spend more too.

Also read: Save, Plan, Invest & Track Money

Hack #5: Show It Off

Do you remember how you used to gloat when you got the top mark in class? Or how about that time when you got that plush sofa for your home? We all love showing off our abilities or belongings to others. You can try to show off your investments too.

When you manage to find a good bank that offers a higher deposit rate for your money, you can tell your friends about it. This will surely make you feel good. You might even find that one of friends knows an investment that gives them more income.

The more you start talking about your investments, the better financial knowledge you will have about whether you are making the right investments. You will also gain confidence about the investments that you make.

Try these hacks and say Good Bye to financial procrastination. Once you start working on your finances, monthly money management will be a breeze for you. You can take the help of a financial planner Moneysage once you have some investments to manage and you need to achieve your financial goals like kid’s education & Retirement.

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