Tomorrow Never Comes – Why We Procrastinate Financial Planning
By Erik Garcia, CFP®, BFA™, ChFC® & Xavier Angel, CFP®, ChFC®, CLTC
“Free crabs tomorrow.” That was the promise painted on the side of Joe’s Crab Shack. Unfortunately, the crabs were never free—because tomorrow never comes.
And double unfortunately, we tend to put off “until tomorrow” financial decisions that could greatly impact our future. Whether it’s buying life insurance, investing, or saving for retirement, many of us delay taking action because we assume we’ll have more time. But as we discussed in a recent episode of Stuff About Money They Didn’t Teach You in School, tomorrow never comes. Financial Procrastination has a cost.
So why do we procrastinate when it comes to money? It turns out, psychology has a lot to say about it. From the famous marshmallow experiment to our inability to connect with our future selves, understanding why we delay financial decisions can help us break the cycle and start making better choices today.
Why Do We Put Off Important Financial Decisions?
- Present Bias – The Instant Gratification Trap
One reason people procrastinate on financial planning is present bias. This psychological principle explains why we tend to overvalue immediate rewards and undervalue future benefits. In other words, spending money today feels a lot more rewarding than saving it for a future that feels distant and intangible.
The famous Stanford Marshmallow Experiment illustrates this concept perfectly. In the study, children were given a choice: eat one marshmallow now or wait 15 minutes and get two marshmallows instead. Many couldn’t resist the immediate gratification. The same applies to money—many of us prioritize today’s wants over tomorrow’s needs, even when we know delaying gratification could lead to greater financial rewards.
- The Disconnect Between Present and Future Self
Another reason people procrastinate when making financial decisions is that they struggle to relate to their future selves. Research has shown that when people think about their older selves, their brains react as if they are thinking about a stranger. This disconnect makes it harder to prioritize long-term financial security.
Some financial firms have even leveraged technology to bridge this gap. By using AI to “age” clients’ photos, they’ve found that people who can see themselves as older are more likely to start saving for retirement. When we recognize that future us is still us, making long-term financial decisions becomes more meaningful.
- Bad Financial Habits and Lack of Awareness
Procrastination isn’t always a conscious choice—it’s often the result of bad habits formed over time. Many people grow up without proper financial education, leading to behaviors like overspending, avoiding budgets, and ignoring investment opportunities. Without a clear understanding of how financial decisions impact the future, it’s easy to push off important actions indefinitely.
The Cost of Procrastination
Delaying financial decisions comes at a price. Here are a few costly consequences:
- Higher Insurance Costs – Life insurance premiums increase with age, and delaying can mean paying significantly more—or worse, becoming uninsurable due to health changes.
- Lost Investment Growth – The power of compound interest works best over time. Delaying investing means missing out on exponential growth.
- Increased Financial Stress – Uncertainty about money often leads to anxiety. The longer we delay, the heavier that stress becomes.
How to Overcome Financial Procrastination
- Visualize Your Future Self
Take time to picture where you want to be in 10, 20, or 30 years. What kind of life do you want to live? What financial security will you need? Having a clear vision helps make long-term decisions feel more urgent and personal. - Automate Your Financial Decisions
One of the best ways to remove procrastination from financial planning is to remove decision-making from the process altogether. Set up automatic contributions to your 401(k), IRA, or savings account so that investing happens without effort. The less friction, the better. - Simplify Your Finances
Managing multiple bank accounts, old 401(k)s, and scattered investments can be overwhelming. Consolidate when possible and streamline your financial system to make managing money easier. - Get Accountability (Actually, a Lot of Accountability)
Whether it’s a financial planner, business coach, or trusted friend, having someone hold you accountable can make a huge difference. A good financial advisor will help you stay on track, make informed decisions, and keep financial goals aligned with your life vision.
Final Thoughts
Procrastination isn’t just a money issue—it’s a human issue. But by understanding why we put things off and taking small, intentional steps to change our habits, we can start making better financial choices today. So whether it’s investing, getting life insurance, or simply setting a budget, take action now. Because in finances—just like in life—tomorrow never comes.
Listen to the Full Podcast Episode
Want to dive deeper into this conversation? Listen to the full episode and start taking control of your financial future today!
