The Cost of Delay

“It is an undoubted truth that the less one has to do, the less time one finds to do it in” - Earl of Chesterfield

As a Financial Planner, I meet many people who have gaps in their overall financial planning. This can be something as simple as needing to increase life insurance to cover a new family addition or rising lifestyle costs. For others, it’s a matter of reviewing retirement plans to stay on track towards financial security in later years.

For many, the gaps are larger because they’ve never made plans at all. Sometimes, it’s as simple as servicing debts more effectively, allowing savings to start sooner rather than later. For others, it’s about preserving their overall net worth and ensuring inflation doesn’t erode their wealth over time.

Regardless of the gaps or needs, all my clients and prospective clients share one truth: those who delay making decisions often end up losing out, in one way or another. This isn’t to say that any financial decision should be rushed or poorly considered; indeed, it’s crucial to use your best judgment when making decisions that will impact the future of yourself and your family.

Napoleon Hill, the renowned author and lecturer, wisely said, “Don’t wait; the time will never be right.”

Below is an investment example that shows what delaying decisions can cost you in real financial terms:

Let’s say you’re 30 years old and want to save $1,000 per month until you’re 60 to help fund your retirement. Assuming constant contributions (with no increases in line with inflation) and an average annual return of 5%, you could accumulate a sum of $832,258 by age 60.

Now, let’s see the impact of delaying. Using the same numbers, here’s the cost of waiting:

• Wait 5 years = $595,509 | Loss: $236,749
• Wait 10 years = $411,033 | Loss: $421,225
• Wait 15 years = $267,288 | Loss: $564,970

Even a delay of just five years can mean the difference between a reasonably secure retirement and needing to work longer or rely on state or family support. The sooner you start, the less you need to save to achieve the same results. If you started at 25, for example, you would have $1.1 million by age 60. You could even start by saving less and still end up with the same, or more.

Even those who see short-term drops in their investments tend to benefit over the long term as markets recover. The reality is that most people who avoid investing don’t compensate by regularly saving cash—they do nothing, which guarantees a return of nothing.

I know several people who, a decade ago, decided to wait and are still waiting. Despite career progress and better pay, their net worth hasn’t significantly increased because they haven’t committed to saving, whether they invest or not. The evidence is clear: doing something sooner will cost you less and get you more.

These days, with options like capital-protected insured savings and diverse strategies such as real estate and alternatives, there’s never been a better time to get started.

#investing #delay #costofdelay