According to the Oxford Advanced Learner's Dictionary, “procrastination” is defined as “the action of delaying or postponing something”. What is interesting in this definition, is that the person has actively and decisively made a decision, to delay the matter. It is not a subconscious decision, it is a conscious one. It is also inevitable that the matter will eventually reappear.

And with the second part, we all know the definition of “financial” – it means “relating to finance”.
Put this together, and we have financial procrastination – the conscious decision to avoid or delay, all matters relating to one’s financial affairs (which will inevitably reappear – it does not go away!).

So why do we do it? Having been in this industry since leaving school, and having met people from all walks of life, I would have to say that there would be lots of different reasons as to why people procrastinate, when it comes to dealing with their financial affairs. But there is a few common themes, which resonates quite clearly. It is important that we explore each of these, as it is quite possible that you, the reader, may fall into one of these categories.

No news is good news: People in general, do not like bad news. Especially when the bad news is personal. But who said it will be bad news in the first place? This is still the great mystery that we are yet to uncover. Most people do not want to deal with their finances because they simply expect the news to be depressing, and that uncovering the “truth” will have a negative impact on their lives. Most of the time, it will have an impact, but it is not all necessarily negative. This is what we call the fear of the unknown. 

Too hard basket: Everyone has one of these baskets. We were all equipped with one, just like the fact that we have two eyes, two ears, one mouth. All human beings are equipped with a too hard basket. Some people use it a lot, and it becomes almost like a too hard semi-trailer. Others use it sparingly, to offload some of their burden, as they travel through life. As the paperwork piles up, and the passwords to accounts are forgotten, one’s financial affairs are quite often transitioned into this basket. It is simply too hard to get started. But if you cut through the story telling, and uncover the real reason as to why it has fallen into the too hard basket, you will see that it is also due to the fear of the unknown.

Imaginary Obstacle: There is a solution to every problem in this world. Whether the person that is responsible for making the decision is willing to listen or not, is another story, but for every problem there is a solution. People in this category usually have an obstacle (usually imaginary – in that it can be resolved).  When they meet with a financial adviser, the obstacles come out. One by one. As if they are ex-partners, all lined up on display. Sometimes there are valid reasons as to why the financial affairs cannot be dealt with at a certain point in time, but usually it is because the person does not want to deal with it.  Consequently, they have conjured up wild terrifying beasts to be fought with and lands to be conquered, battles to be fought and won, before they can get to their financial affairs. Underneath all this, lies a thick layer of fear.

They believe they are an ostrich: It is a common saying that ostriches bury their head in the sand to avoid predators. This metaphor is commonly used to describe people avoiding their responsibilities, obvious facts or refusing to accept advice, and naively hoping that simply denying the existence of a problem will make it go away. In the world of finance, it will not go away. It will actually only get worse. Can you smell the fear here?

Feeling Incompetent: Recently, a new client that engaged our firm, gave us another insight, as to why people procrastinate. This one resonates from the fear of being made to look incompetent. This is very common, as no one wants to appear as though they do not have control over their finances. It takes a brave soul to put their hand up, and ask for help. Once they do, they will find that they will not be judged, nor looked down upon, as every person has their own skill set. Ours is finance and numbers, yours may be something else (to which we would have to be at your mercy!). A brave person recognises their weaknesses, and asks for help, whilst focusing on nurturing their strengths.


So you can see here, that these common themes, are actually excuses, all stemming from fear. Fear of the unknown. Fear of your financial affairs. Fear of the reality of what your numbers will tell you. But as we will see later on, not knowing your financial position is very detrimental to the health of your business, and yourself personally. Picture yourself as the captain of a ship. You are obviously not alone, as you would have enlisted help to assist with the journey. As the captain, you are responsible for their well-being. As a business owner, you are responsible, to some degree, to keep your business afloat, so your staff have a job. Without your numbers in line, or having your financial affairs in a mess, is like being a captain of this ship, but without any navigational equipment. Which way should you steer the boat?

How bad is it, and why is it an epidemic? Stay tuned!