Want to improve your finances? Sit back and relax!
In our fast-paced world, we are always moving and always making decisions. The “rise and grind,” get-up-and-do-something mindset is heavily praised, but is that philosophy flawed? Some experts agree that, when it comes to finances, doing nothing is the best thing to do.
What It Means
To do nothing means to choose not to take an action right now. It doesn’t mean that you will never make a decision, and it doesn’t mean that you’re going to loaf around rather than go to work.
The idea behind this is that by choosing not to act right now, you give yourself more time to make the best decision. Time may even show you that a decision wasn’t truly required at all. Decisions made in haste are often regretted, and economic conditions need time to work themselves out.
The Impact Of Inaction On Your Finances
Consider this scenario: Your home needs an expensive repair that is not urgent. In a rush to get it fixed, you apply for a loan. Your credit score is low, and the only company that will give you a loan is a predatory lender. You accept the bad loan. The home gets repaired, but you end up paying double the price of the repair in interest to the predatory lender.
What if you had done nothing? Months later, you used your Christmas bonus to fund the repair. In the meantime, your credit score improved, so you would have been able to get a loan anyway.
Finances Are Not Stagnant
The economy is an evolving, living thing, and your personal finances fluctuate too. Unfavorable circumstances are rarely permanent.
The do-nothing mindset is not merely wishful thinking. It is a conscious recognition that time can reveal innovative, viable solutions. So hurry up and wait!