Why do people procrastinate when it comes to saving a deposit or investing in property? Intellectually, I suspect that most people know they should invest, but most people make very poor plans for their financial futures, if they even plan at all.
Here are a few of the reasons why people delay investing:
- Fear of failure
- They are impossibly disorganised
- They are ‘doing fine’ without investing
- Marital disagreements
- People may feel too incompetent to invest
- An inability to face serious issues
- They ‘can’t afford to invest’.
Fear of failure
It is human nature to have a fear of the unknown, and for many people, investment is an unknown quantity. Many people are afraid of investing for fear of losing substantial amounts of money, or worse, being conned out of it. This is natural, as none of us wants to lose what we have worked hard for, or appear foolish.
The fear comes from a lack of clear understanding of the risks of investing. Fortunately, there are easy ways to begin investing in a low-risk manner with little or no risk of loss of capital. Then, as you learn more, you may begin to feel comfortable taking on more risk.
We probably all know people who are totally disorganised, seem incapable of arranging their affairs and never look at their bank statements.
They often appear to be busy or scatterbrained people with a short attention span and no appetite for detail. There can be any number of causes, such as stressful jobs, addictions or relationship problems, but these are habits that can potentially be ‘un-learned’ relatively quickly.
Generally, people are not keen to look at bills, credit card statements and bank statements because they fear that they will bring only bad news.
However, not looking at them will not improve the news they bring. The good news is that once you begin to take your finances more seriously, looking at bank statements and investment accounts automatically begins to bring you pleasure rather than pain.