A recent Suncorp study stated that two-thirds of people procrastinate about money, typically around establishing a budget, setting up a savings plan, or prioritizing their spending. Economist Philip Slade said that people underestimated the impact of emotions on financial decisions. Looking at finances brings up a range of emotions like regret, disappointment, and fear. Procrastinating can damage the financial future which makes the issue harder to tackle. Brains are hard-wired to avoid pain which makes it resistant to money-related issues. Procrastination has a number of consequences like missed deadlines, wasted opportunities, and sub-standard work as a result of a lack of time. The costs of procrastination are not that easy to quantify. Lack of money and debts are the biggest financial crisis that people face today.
Debt is also one of the obstacles to financial security. An average U.S. household credit card debt is over $15,000, and average mortgage debt is $150,000. Continuous focus on a daily and monthly budget can create awareness if the expenses are truly necessary. Health insurance is no longer an option today. Having health insurance provides a huge sense of financial security for families. The financial risk associated with the insurance fee is too high and will likely jeopardize financial stability.
A kickstart towards better savings is simple. The key to building a strong financial standard for the future is to understand how to spend and save. This gives a sense of control and confidence that makes easier financial changes. In order to overcome the financial problems, it is essential to make decisions based on priorities. Thus, all the unwanted expenditures either can be minimized or eliminated. Taking small steps will always lead to success and progress in achieving financial goals. It’s never too late or too early to start saving for a rainy day to secure future. Saving what remains at the end of the month is not the right way. Instead, considering the savings before expenses helps prepare oneself for a financially secure future.