When it comes to money matters, it is tempting to believe that delaying a decision buys time. Many people wait for the ‘right moment’ or hope that circumstances will somehow become clearer before they act. The problem is that postponement is, in itself, a decision. Doing nothing carries consequences of its own, and in the realm of financial planning, those consequences are often more damaging than making a choice that is less than perfect.
The silent cost of cash drag
One of the most common examples is the investor who leaves a large sum of money sitting in cash. Faced with uncertainty about when and how to enter the market—whether to invest in tranches or all at once—indecision sets in. While they deliberate, inflation steadily erodes the purchasing power of their capital, markets continue their upward march, and opportunities for growth slip away. In the end, it is not a poor investment decision that undermines wealth creation, but the decision to do nothing at all.
Insurance delayed is protection denied
Indecision around insurance can be equally destructive. Delays in choosing a provider or finalising cover may stretch into weeks or even months, and during this time, no protection is in place. When illness or disability strikes, the financial consequences can be catastrophic. Ironically, the hesitation often stems from a fear of choosing incorrectly, yet the cost of indecision is far greater—the absence of cover leaves families exposed to risks that could have been mitigated with timely action.
Difficult conversations avoided
Inaction is also evident in the conversations people avoid. For example, someone aware that their retirement capital is running out may choose not to raise the issue with family, fearing embarrassment, conflict, or disappointment. But silence only delays the inevitable. When the reckoning comes, the burden often falls on loved ones in ways that could have been avoided with foresight, planning, and a willingness to face the discomfort earlier. In avoiding the difficult conversation, they inadvertently create both financial and emotional strain for those they care about most.
Wills delayed, families distressed
Estate planning provides another painful example of the cost of indecision. Many people struggle to decide how their assets should be divided and, as a result, postpone the drafting of a Will. When death comes unexpectedly, families are left grappling with an intestate estate, forced to wait months for access to funds while dealing with grief and uncertainty. The failure to act—often born of discomfort or procrastination—creates avoidable hardship for heirs at a time when they are most vulnerable.
Retirement funds left unprotected
Changing jobs brings with it important choices about accumulated retirement savings, yet employees frequently postpone these decisions. In many cases, the default outcome is that the benefit is paid out in cash, taxed, and invariably spent. Only years later does the regret surface, when the opportunity to preserve the funds has passed and the damage to long-term retirement planning is irreversible. Here again, the decision not to act proves costlier than any of the alternatives.
Debt that spirals out of control
Few areas demonstrate the price of indecision more clearly than debt. High-interest loans left unconsolidated grow relentlessly as interest compounds. What may once have been a manageable problem quickly escalates into a burden that feels insurmountable. The discomfort of taking decisive steps early—whether by consolidating debt or committing to a repayment strategy—is almost always less painful than the long-term consequences of delay.
Business owners paralysed by choice
Business owners are not immune to the trap of inaction. Matters such as succession planning, updating buy-and-sell agreements, or arranging shareholder protection are often postponed with the intention of being dealt with ‘one day.’ The harsh truth is that illness, accident, or death can arrive before that day ever comes – and when this happens, businesses unravel, employees face uncertainty, and families lose livelihoods. Again, what brings everything undone is not a poor plan, but the absence of any plan at all.
Why inaction feels safe
Why is it that so many people fall into the trap of delay? Much of it comes down to fear—fear of making the wrong decision, fear of regret, fear of criticism. For many, doing nothing feels safer – yet, psychology tells us otherwise. Loss aversion makes us more afraid of losing than motivated to gain, while status quo bias convinces us that maintaining things as they are is the least risky option. In reality, however, standing still in financial planning almost always means falling behind.
Building the discipline of action
It’s important to bear in mind that indecision is never neutral. Whether it is leaving money in cash, postponing insurance, avoiding conversations, or neglecting to draft a Will, the effect is rarely harmless. This is because financial planning demands action, even in the face of uncertainty. There is seldom a perfect option, but taking a considered step forward is almost always better than allowing inertia to dictate the outcome.
For those who find decision-making difficult, there are practical steps that can help:
- Set deadlines. Without a timeline, decisions drift indefinitely. Even a personal deadline can create momentum.
- Tackle it in stages. Break down large, daunting choices into smaller, more manageable steps. Draft a simple Will now and refine it later.
- Lean on professional guidance. A trusted financial planner can provide clarity, simplify complex issues, and help weigh up trade-offs.
- Count the cost of delay. Seeing the impact of lost growth or mounting debt can highlight the urgency of taking action.
- Recognise your biases. Understanding your own blind spots can help you move beyond them.
In financial planning, waiting is seldom a safe option. Every day of inaction is a day when inflation erodes cash, when risks remain uninsured, or when families are left unprepared. The promise of ‘I’ll decide later’ is an illusion, because later so often never comes. The reality is clear: no decision is still a decision—and more often than not, it is the most expensive one of all.
Have a great day!
Sue
