Simple Truths About Money

1. Procrastination is the most common cause of financial failure.

When we procrastinate we put off doing something until later. If it is your laundry, the consequences are not so grim, you may not have a clean pair of socks to wear to the gym. But if it is investing the $10,000 you have sitting in your bank checking account, the consequences are not as easy to remedy.

Let’s look at the $10,000 that stayed in the bank checking account earning no interest, and another $10,000 that was put to work in a balanced mutual fund that has earned an average 8.2% over the last 10 years and we will assume will do the same going forward. At the end of 5 years, the balanced mutual fund is worth $14,830.00 and at the end of 10 years is worth $21,992.40. The $10,000 in the checking account is still $10,000 and buys less due to the effects of inflation.

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