Procrastination

Procrastination is a nearly universal human trait. The tendency to procrastinate also undermines our self-confidence, convincing us that we are lazy or worthless. What is it in human nature that makes us delay doing certain things until the last minute--or forever?

Somewhere in your life, at home or on the job, you’ve been putting off doing something. The task itself might not be all that important, but it’s something you think you ought to do, and that persistent inner voice won’t quit until it’s done

Psychologists tell us that procrastination is a symptom of a hidden fear or conflict, a buffer that protects people from taking actions that may force them to confront painful feelings and unresolved issues.

For some people--a relative few--procrastination brings serious consequences. They lose jobs or relationships because of their apparent inability to complete projects on time or follow through on commitments or they realize too late that they have nothing saved for retirement.

How do we overcome our tendency to procrastinate? One way is that instead of setting vague, general goals, we pursue concrete behaviours that, pursued step by step, will lead to a goal. Another suggestion is if you have to start a project don’t wait until you think you have the time to do it all at once. Better to get started and use small bits of time--15 minutes here or there--to make continual progress toward your goal.

Some believe that the right dose of discipline and effort can help curb our procrastinating nature for a while, but this habit is powerful and we quickly fall back into bad habits. Savings plans get derailed, diets get cheated on, and, well, you never did go to the gym.

So what’s the solution? It’s called automation, and it goes beyond simply paying yourself first.

There is a lot of research that suggests that one of the best ways to get people to save for retirement is to automatically enroll them into the group savings plan instead of leaving it up to individuals to opt-in. Automatic savings plans are the most effective way to build up a nest egg. If you have to actively think about saving, odds are you won’t do it.

People were asked in a survey could you save $150 a month or would you save $5.00 a day. 7% of those surveyed said they could save $150 a month, yet 30% said they could save $5.00 a day. (Do the math…:-) Putting away even a small amount every month is a great first step, but perhaps there’s more you can do to ensure that you have a good retirement.

Back in the mid-1990s, behavioural economists devised a program called Save More Tomorrow that used nudges to help people make better long-term financial decisions. The program invites employees to gradually increase their savings rate over time.

Save More Tomorrow turns our natural tendency to procrastinate into a positive outcome. While most people would cringe at the idea of saving an extra $100 today, they’re more likely to agree to save that much in January, when their raise kicks-in. The Save More Tomorrow program asks the question and then automatically commits you to that increased amount in the new year. You don’t have to think about it again.