If you’re thinking about procrastinating, don’t. It isn’t a good idea at all, and avoiding procrastination will add thousands, if not millions of dollars to your bank account while also improving your general quality of life. Basically, I want to convince you in a few words, using mathematics, why you shouldn’t ever procrastinate.
What is procrastination?
Here’s the Google definition, in case you didn’t know or already have a rough understanding of the concept.
So basically, to procrastinate is to waste time when you have stuff to do. We’re all guilty of this. As a matter of fact, I would venture to say that many of the most productive people in the world are reformed procrastinators. A lot of people who take on challenging endeavors find themselves briefly reluctant. But it isn’t good. Let me show you the mathematical reason why.
Look at compound interest
Compound interest is something that most commonly occurs when you deposit money into a bank account, and let it grow at a certain rate over a certain number of years. It’s a wonderful phenomenon if you’re a disciplined. You see, even if the rate of compounding is low, you gain a lot as a result of the interest. Here’s how much you get when you invest $600/month into an account that gives 4% annual interest for ten years.
That’s a pretty solid gain, isn’t it? 4% isn’t even that high of a return. Let’s see 10%, 20%, and 50%., respectively.
Pretty crazy isn’t it? The higher your rate of return, the more money you make. There’ a huge difference between $86,000 and $860,000, so you have to invest wisely. But you get the point right?
If you procrastinate, you get less
Here’s what you get if you compound at 4% for 5 years.
Less than half what you would have if you had put your money in for 10 years. Let’s see what it’s like at a 50% rate of return.
Wow! Brutal. Those 5 early years allowed us 10x your money. This is why you want to start doing everything in life as early as possible. This will allow you to get massive returns in the future. Stuff that’s beyond your wildest dreams. Imagine what happens over 20, 30 or 40 years? Compound interest matters. You can play with the calculator here.
Compound interest applies to everything in life
Everything in life compounds. Experiences, friendships, knowledge, reputations. What you focus on the most is what grows fastest. This is why it’s important to focus your attention on the right things and apply your energy correctly. You’ll see either massive positive or massive negative returns over time.
Different things compound at different rates
Stocks and bonds might only compound at a rate of 4%. But other investments might offer higher rates of return. So might other areas of life. Spending time with your children probably compounds at a pretty high rate, especially when they’re young. Me personally, I think the concept of compounding applies nicely to the discipline of time management if you’re able to think in the abstract, and realize that it’s important to start everything as soon as possible. Basically, procrastinating is very bad and prevents you from contributing to your compounding account. You’re going to experience negative growth if you do that.
There’s a difference between taking breaks and procrastinating
I want to make sure that this is clear. Taking breaks and resting is healthy, but procrastinating really isn’t. Do what’s required to stay happy and healthy, but if you find yourself intentionally wasting time…you need to get to work. Listen to your body and listen to your heart. You know when you’re procrastinating. Avoid that to maximize the effects of compounding in your life.
The sooner you can get some money, the less time you need to spend working
The more you focus on the important stuff, the more time you’ll have to spend on the important stuff. It’s a simple truth. Focus on the long term. What can you achieve as a result of the work you’re doing? Imagine how your efforts will compound, like the money I showed you in the calculator. Investing when young is only one way in which you’ll experience compounding. Your skills, knowledge, and experience will compound. In real life terms, this should mean raises, promotions, and job offers sooner rather than later. All of these lead to a certain measure of freedom, provided your expectations are reasonable.
The more time you get to spend on the important stuff, the more the results compound
This applies to friendship, hobbies, love, whatever you want it to. Imagine that same compound interest calculator working in your favor in every area of your life. Sounds great, doesn’t it? All you have to do is not procrastinate. It’s that easy. Whether you’re a writer, a singer, a businessperson, a lawyer, or a janitor, this concept applies. Procrastination is the number one thing to avoid if you want to achieve success. Don’t delay gratification. Work smart but get after it and work fast. You have no idea how difficult it is to become successful, especially when you’re just getting started. Even just becoming above average takes an immense amount of discipline.
Procrastination is always appealing. The busier you are, the more likely you are to want to do it. But don’t. Oftentimes, being busy is a sign that you’re getting a lot done. Just make sure you’re staying on task and things should go well for you. Taking breaks while you work is good and healthy, but remember the compound interest calculator. Every minute you waste is taking away from your life in an immense fashion. It’s that simple. Don’t procrastinate!
Thanks for paying attention.
