Financial decisions: how to stop putting them off? | INCAE

Financial decisions: how to stop putting them off?

February 12 2019
INCAE Masters

How many times have you postponed a decision to realize that the delay made everything worse?

The payment of a traffic fine, the credit card or the purchase of plane tickets. Most of us are aware that inaction is the best way to aggravate a situation, but for whatever reason we continue to do so.

Procrastination intensifies when it comes to financial decisions. According to the results of a survey to measure financial capabilities carried out by CAF- Development Bank of Latin AmericaIn several countries of the region it is evident that there is ignorance about basic issues in economics and finance, which limits our ability to make responsible and conscious decisions.

The lack of knowledge causes us to experience some discomfort or even fear when faced with an important financial decision. The place NBC News recommends four key steps to stop procrastinating and gain control.

Break the cycle

For some, financial decisions are not a priority. According to Jerry Patterson, Senior Vice President of the US firm Principal Financial Group, for people It is difficult to make a decision that represents a long-term benefit, as we focus on what we want in the present.

Buying a car of the year can be more tempting than investing in your pension fund, which you will not need for another thirty-five years, but that is when you should stop to think about what your priority really is and what will give you the most benefits. The key is to change your mindset and dare to take the first step; By just spending a small part of your time improving your financial knowledge, you will gain confidence in deciphering what is best for you.

Stop running away

"It's not the moment". Sometimes we hear that inner voice telling us that we are not ready to make that decision; But when will we be?

The perfect moment never comes, we must accept our circumstances and act with what we have within our reach. The earlier you start saving and moving toward your goal, the better! Each day you postpone is one step further from your goal.

Lose your fear of failure

There will always be a risk. You will not be able to be absolutely sure that your investment will turn out as you expect, but that degree of uncertainty should not be reason enough for you to stop doing it. The good thing about failure is that it is not final, you always have the opportunity to learn from it and get back up.

It is valid to feel fear, even so it is necessary to make the decision. Find out and once you have analyzed your alternatives and determined which is the correct decision, do it without looking back. Think about the important decisions you have made so far; Perhaps not all of them had a good outcome, but you would not be where you are if fear had overcome you.

Bet on the future

Once you overcome the barrier of fear, patience is the next bridge you must cross. When people do not see quick results or, on the contrary, experience small losses in the short term, they may think that it is necessary to abandon the plan; however, that's when you have to keep going.

Obstacles will appear along the way and perhaps at some point you will have to rethink your strategy or make other sacrifices, but you should always be clear about your ultimate goal.

Well says Warren Buffet, one of the most successful investors in the world: "Think in ten years instead of ten minutes, patience pays". So don't despair or lose focus, because the gains are yet to come.

This article is based on By Jean Chatzky's post on NBCnews. 

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