The Situation

Why Delay Costs More Than It Appears

The cost of waiting to start investing, pay off debt, or address a financial issue is never just the month's foregone action. It is the compounding that the delayed action would have generated — which grows exponentially over time. A one-year delay at the beginning of a 30-year investment horizon costs far more than a one-year delay at the end of one.

The cost of waiting is not visible until it is too late to recover. The earlier the delay, the larger the permanent gap it creates.

— Worthune Decision Framework

• You've postponed a financial action — starting investing, paying off debt, creating a will — for more than six months
• You've told yourself you'll address a financial issue 'when things settle down' without a specific date
• You've underestimated how much the delay itself is costing you relative to taking imperfect action now