Have you ever wondered why achieving financial goals becomes a struggle? Setting up a fund for children’s education, travel, emergency, health care, retirement, etc. might sound like a plan. But achieving these financial goals doesn’t come easy. It is a result of consistent, disciplined, and structured investment planning. While journalling personal financial goals, one may realize the importance of investments but would not feel the urgency to do so.
So the main culprit that stops an individual from achieving their financial objectives and goals is PROCRASTINATION. In today’s world of information,, so much buzz is created about money management. Hence, there is no denying about the importance of investments. Still, a lot of individuals would go on postponing their investment decisions because of a lot of factors.
Lack of knowledge is one of the major reasons why individuals go on delaying their investment decisions. On the contrary, it can even be too much inflow of information which leads to a lack of clarity and results in deferring investments. In situations like these seeking guidance from a professional investment advisor and getting started on the investment journey can be the best bet.
A very interesting concept given by Dwight D. Eisenhower, discusses about two types of tasks or decisions, the urgent and the important. To which he states that urgent are not important and the important ones are never urgent. The urgent important matrix is a great tool to prioritize the tasks at hand and make informed decisions.
As per this matrix, investments being an important activity but not so urgent lies in quadrant 2. This is called the MAGIC quadrant. Not urgent, but important tasks are the activities that help to achieve long-term goals. These actions move the individuals towards their big goals and projects. Similarly, investments being an integral part of financial planning support the achievement of financial goals.
Activities in this quadrant may not have a deadline (or even an end date) so it is easy to put them off in favor of more urgent tasks. However, these tasks have a much greater effect on long-term effectiveness in achieving goals. Investments are one such important activity that does not have a timeline, thereby chances are putting it off to more urgent tasks.
So the strategy to effectively manage the activities that lie in quadrant 2 is to Plan them in a timely. The general rule for this group is to schedule time to work on these tasks. Putting them off will just bump them up until they become urgent, or never addressed. By attending to Quadrant 2 consistently, there tends to be a decrease in the number of pressing problems that can pop up in Q1 and become stressful.
Investments are the best example of quarter 2 activity which is often ignored in place of more urgent activities. The damage begins to happen as one starts to ignore their investments. If timely decisions about investments are not taken, one misses out on a lot of benefits of investing at an early age. The magic of compounding is surely a big loss for an investor who joins the bandwagon of late investors. Moreover, when it comes to other financial security instruments like insurance, in the later age of life in many cases, it becomes difficult to get insurance cover or even if it is available it comes at a huge cost of premium.
So a wise decision is to plan investments timely and make a schedule for it so one doesn’t miss out on the benefits of a young investor. Also to achieve the financial goals it is a must to plan investments. Knowing that wealth creation is a long-term process, there is no shortcut to it. So, devote time to it, and do not PROCRASTINATE..!!
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