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Cape Town - Procrastination can cost you money, warns Eunice Sibiya, head of Consumer Education at FNB.
Procrastination is when someone puts off tasks they think are unpleasant until the last possible minute.
"While sometimes putting off completing tasks in your everyday life is not a big deal, you shouldn’t take that attitude with your finances as it can not only cost you money in the short term but, worse in the long term you may find yourself without any savings or a with a bad credit record,” warns Sibiya.
She lists a few common ways that procrastinating can be detrimental to your finances.
1. Always paying bills late
Often one ends up paying after the due date when you are in the habit of leaving it till the last day. Unfortunately service providers will not let you get away with paying bills late.
There is either interest that accrues from the day that it is late, a late payment fee and in some cases the service provider will simply stop the service. Not paying bills has a more serious consequence than penalty fees.
Unpaid or even late bills will reflect at the credit bureau making it difficult to apply for credit. There is really no excuse to pay bills late nowadays with all the digital platforms that banks provide.
With Cell phone and Online Banking or an App there is no need to delay paying bills or use the excuse that you don’t have the time.
2. Not having a budget
One of the reasons why you may not be tackling your finances could be because you don’t want to face the truth about what you are actually spending every month. If you haven’t done so by now, it is vital that you draw up a budget by simply writing down money that comes in every month, versus money that goes out.
Budgeting can help you save money as it quickly highlights bad spending habits.
See FIN24's Budget Planner
Drawing up a budget is the first port of call in getting your finances under control which will help you manage your money and track expenses.
3. Filing your tax return
Not filing your tax return on time comes with a price and penalties. Make sure that you give yourself plenty of time to collect all the documentation you need, such as IRP5s from previous employers, tax certificates from medical aids, investments and RAs.
* Have a tax question? The experts at Sait provide answers as far as possible.
4. Putting off saving
Procrastinating over savings will really cost you in the future. Most people don’t realise that by putting off saving they are essentially taking money from their future selves.
So the money that you are spending on unnecessary items now, such as entertainment or clothing, is money that your future self could be using towards something that will make a real difference to your life - such as a deposit for a house, your children’s school fees or even living comfortably in retirement.
It doesn’t matter how little you are saving, as long as you are putting something away right now as a start. This is one financial discipline that can’t be put off indefinitely.
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