Are you postponing an important financial decision? Millions of us delay making choices due to stress and lack of time – that's why we unveil five top tips to prevent procrastination
- Research shows that 47% of people never thought about changing their pension
- Many say it is because they do not have enough time or it is too stressful
- We reveal the best tips about stopping procrastination and making difficult financial choices
Millions of Britons do not have enough time or mental capacity to make important decisions, including all major financial choices, according to a new study.
More than four million Britons have difficulty making the right choices when it comes to difficult decisions, research by Scottish Widows has suggested. Another 6.4 million people said they just didn't have enough time to complete an important life admin.
Worryingly enough, this means that a large proportion of people are unable to make crucial financial decisions, which means they can go out of their own pockets.
The study found that 47% of people never thought about adjusting their pension
The study was conducted online by YouGov in February for 2,062 British adults 18 years of age and older.
The survey shows that 47 percent of people have never thought about adjusting their pensions, while only 29 percent say they make the best possible choice when it comes to their retirement plans.
Another 38 percent said they have not yet reached a decision about whether or not to buy a life insurance policy.
Robert Cochran, retirement expert at Scottish Widows, said: “It's easy to get caught in dealing with daily decisions in our hectic lives, but this keeps many of us from spending the right amount of time taking important decisions, which can influence our financial health.
& # 39; Getting to grips with your financial situation, for example figuring out whether you are storing enough for your retirement, is a big decision to decide on our future, but technology makes it much easier for people to photograph their retirement – your future self to see it makes it much easier to make choices now than a set of complicated songs. & # 39;
Time is a big factor for those who reject financial decisions by 19 percent, saying it's too time-consuming, while 17 percent say it's just too stressful.
For those who do take the time to look after their finances, they often do not give their full attention.
About 11 percent of them manage his money at work, while 44 percent sort his when he sits at home in the bank. Another 52 percent say they did this with a double screening with the TV or a movie in the background.
Postponing financial decisions can have a detrimental effect on people's finances in the future
Professor Mark Fenton-O & Creevy, professor of organizational behavior at the Open University Business School and expert in financial decision-making, said: “People will postpone when decisions make them anxious. They will also postpone making a decision if they feel they are unable to make it.
& # 39; Those who do not actively plan their finances will make less effective choices. Pensions are a classic example – the government switched to automatic enrollment because so many people took no action.
& # 39; Research has found that smaller decisions can displace the big ones and important, urgent choices are left behind. All unimportant, less urgent things become a useful distraction from the more important things. & # 39;
Postponing financial decisions, not surprisingly, can have a detrimental effect on your finances, for example delaying the handling of your tax return can lead to a fine.
In general, the later you make decisions, the less time your finances have to increase in value, as is the case with pensions, investments and savings.
Professor Fenton-O & # 39; Creevy added: & # 39; Important decisions about our lives can be dealt with more easily if we create the mental space to deal with them.
& # 39; Putting a lot of time and energy into everyday choices not only reduces our time and mental resources for more important decisions, it can also be a way to avoid difficult choices that we should make.
& # 39; The good news is that it is possible to make small changes to create more mental space for better choices. & # 39;
Top tips for making difficult decisions
Professor Fenton-O & # 39; Creevy says the first thing you should do is to give priority to making time to make decisions.
& # 39; It is easy to say that I will leave until next weekend to make a decision, but have a very strong intention and say that it is important enough that I speak out time to do this is important.
& # 39; It is also important to recognize when you postpone delaying a decision because it makes you anxious. If you can, it's important to make an important financial decision with someone. & # 39;
Here are his tips for making difficult decisions:
1. Plan when and where you are your life manager. Choose a quiet location without distractions, such as television or children, and choose a moment when you know you feel refreshed and able to give it your full attention.
2. Recognize when you've had a difficult day or feel emotionally vulnerable. You will be more inclined to give in to impulses than to think carefully. Allow yourself to recover before you make important decisions.
3. Avoid important decisions when you have skipped a meal. Low blood sugar levels can increase decision fatigue and reduce self-control (which is one reason why diets can be difficult to maintain).
4. Help restore your capacity for difficult decisions. Good research has been shown for the benefits of moderate exercise, coming out into a natural environment and even short periods of mindfulness meditation to improve mental energy.
5. Don't sweat the little stuff. Consider whether you spend too much time and mental energy on small, unimportant decisions and activities as a way to avoid the harder choices. It is all too easy to make room for important but less urgent decisions through urgent but unimportant choices.