Finding the time for lucrative action
With the clocks having gone back this weekend, people are being encouraged to use their time to invest in their financial future.
New research from Canaccord Wealth reveals that skewed perceptions of the time and effort it takes to tackle our financial admin is causing people to neglect to do so.
Some 40 per cent of Scots admit they spend more time worrying about money-related admin than actually getting it done.
However, the wealth manager states that its findings show the task of getting their finances in order is actually much quicker and easier than people expect.
Canaccord Wealth’s research found more than a third (36 per cent) of people in Scotland avoid financial tasks because they assume they are too complex, and 32 per cent believe they’ll be time-consuming. People in the UK delay essential financial tasks by 323 hours on average, it says.
Canaccord Wealth says this is a case of perception versus reality, as more than half (53 per cent) of people who tackle their financial to-do lists say tasks were easier than expected.
Mana Jhaveri, at behavioural insight specialist Cowry Consulting, observes: “Procrastination is often a symptom of being overwhelmed. The challenge with financial decisions isn’t a lack of information. It is, in fact, the opposite – an excess of information.
“Therefore, when faced with complex financial choices, we default to inaction. This makes us put off essential tasks, like retirement planning or investing, because the pay-off feels too far away.
“Working with an expert helps bridge this gap, translating distant goals into actionable, immediate steps, making planning feel not just possible, but inevitable.”
Procrastinating doesn’t just waste time, it’s also costing Scottish households thousands of pounds, warns Canaccord Wealth. Almost half of people say they know they don’t spend enough time on their finances but plan to do more.
Canaccord Wealth found that a single hour spent with a financial adviser could boost people’s savings by tens or even hundreds of thousands of pounds.
Some 36 per cent of people in Scotland worry every day they haven’t sorted their finances, but when asked what they would do with an extra hour a day just 9 per cent say financial planning. This falls far behind the32 per cent who said they would spend time with family, 22 per cent who would choose hobbies or exercise, and 26 per cent who would opt to take a nap.
However, Canaccord Wealth is urging people to rethink their priorities, as just one short session spent on financial admin could create significant financial growth in the long run.
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