Cost Of Procrastination

The Cost Of Procrastination.

Collins Cobuild dictionary says if we procrastinate, we are slow to do something because we keep leaving it until later.

The root core of the term is from Latin - two Latin words "pro" meaning "forward, in favor of," and "crastinus" meaning "of tomorrow". Consequently, it clearly means putting forth or in favor of tomorrow.

Procrastination can be beneficial in some cases. Procrastination sometimes can prevent us from making some serious mistakes like we may not have enough information that we need to start up a project or it may not be the best time for us to get into business. If procrastination becomes advantageous in this way, then it accomplishes a good goal otherwise and in 95% cases – they are detrimental – they are real destiny killers.

The disadvantage of procrastination becomes more glaring in the investment world when we do not take immediate action to invest in the right product at the right time when the opportunity arises. Lost opportunities will definitely cost us money.

A case to show that procrastination cost us money is illustrated by the action of Tim and Tom. Tim started investing RM1,000 every year for ten years since he is 18 years old. He stop investing at the age of 27 and let his investment grow. Assuming at 10% compounded growth, at the age of 65, Tim received RM655,617.00.

Tom on the other hand waited 10 years after he was 18, then he invest RM1,000 a year for the next 38 years. He received RM441,536.00 when he reach 65.

Tim invested only RM10,000 and it multiplied 65-fold, while Tom invested RM39,000 and multiplied only 10-fold. Tom’s opportunity loss is RM214,081.00.