SMJ Wealth

Top 10 Reasons Why People Don’t Prepare for Their Financial Future — And What It Costs Them

Despite having access to more financial tools, advice, and education than ever before, many Canadians still delay or avoid preparing for their financial future. The consequences are significant — not just in dollars and cents, but in stress, uncertainty, and missed opportunities. Whether you're in your 30s or 60s, understanding these common barriers is the first step to breaking through them.

Here are the top 10 reasons why people don’t plan — and how to shift their mindset before it’s too late.

1. "I’ll Do It Later" – The Procrastination Trap

Procrastination is the silent killer of financial dreams. Many people think there will always be more time but delaying financial planning means losing out on years of compound growth, missing tax-saving opportunities, and increasing risk.

The cost of waiting is real. Investing $500/month at 6% for 30 years grows to $502,000. Start 10 years later and it's just $240,000.

2. "It’s Too Complicated" – Financial Overwhelm

The financial world can feel complex: RRSPs, TFSAs, life insurance, estate planning, budgeting, and tax strategies — the jargon alone is enough to make people freeze.

But that’s what advisors are for. A professional breaks it down into simple, actionable steps based on your unique goals. This is why say "You need people like me".

3. "I Don’t Make Enough Money to Plan"

This is a myth. Financial planning is for everyone — not just the wealthy. Even small income earners can benefit from budgeting, insurance protection, and tax-efficient savings.

In fact, lower-income individuals have even more to gain from proper planning — because they can’t afford financial setbacks.

4. "I Don’t Trust Financial Advisors"

Mistrust or bad past experiences with advisors can be a barrier. But a good advisor is not a salesperson — they’re a licensed professional who helps you make smart decisions about your money.

Look for a certified, fiduciary-based advisor who puts your goals first.

One serious fact is that if you work with advisors, you are likely to have up to 4 times more wealth compared to those who don't work with an advisor.

5. "I’m Young — I Have Time"

Youth is your greatest financial asset — because of time. A 25-year-old who invests $100/month until 65 can retire with more money than someone who starts at 40 with $400/month.

Starting early means less pressure later and more freedom to choose your future. In my last post I did share that if I can go back in time and change one thing, that would be planning from my teen age. The sooner you start the better it would be. Today is not too late.

6. "My Partner Handles It"

Relying solely on a spouse or partner for financial decisions can be risky. Life changes — divorce, illness, death — can leave the uninformed partner vulnerable.

Every adult should understand their household finances and take part in planning.

In my meetings I encourage both partners to join because both partners need to know what's happening and their input is very important. If you have headache, can you partner take medicine on your behalf?

7. "I Don’t Want to Think About Dying or Getting Sick"

Avoidance of unpleasant topics is natural — but dangerous. Failing to plan for disability, illness, or death can financially devastate families.

A will, power of attorney, and life and critical illness insurance are not morbid — they’re smart, caring acts.

8. "I’m Doing Fine Now" – Present Bias

When current life feels comfortable, it’s easy to ignore the future. But jobs change, inflation erodes savings, markets fluctuate, and emergencies happen.

What feels fine today may not sustain your lifestyle 10, 20, or 30 years from now.

9. "I Don’t Know Where to Start"

Uncertainty leads to inaction. Without a clear starting point, many people never take the first step.

Start with a simple checklist: Budget. Debt. Insurance. Retirement savings. Estate plan. Then seek help to fill the gaps.

10. "What If I Fail?" – Fear of Mistakes

Fear of making the wrong choice keeps many stuck. But doing nothing is often the worst choice.

The truth? You don’t need perfection. You need to make progress. Start small, stay consistent, and adjust along the way.

Trust me I have made mistakes in the past and still do. They don't make me stop from doing something. I learn every time I make a mistake.



The Cost of Not Preparing

Not planning means:

Higher taxes
Missed investment growth
Underinsurance
Poor retirement income
Family stress

It also means fewer choices, more dependency, and avoidable regret.

How to Break Through the Barriers

Schedule a financial check-up — Just like a doctor’s visit.
Work with a licensed advisor — Like Vishal Vashisht (B.Sc.), who serves Alberta, BC, and Ontario.
Use simple tools — Budget apps, retirement calculators, and insurance reviews.
Focus on your “why” — Think about your family, goals, and freedom.



Start Now. Your Future Self Will Thank You.

The best time to plant a tree was 20 years ago. The second-best time is today.

Stop waiting. Start planning.



Visit www.SMJWealth.com and click on “About Us” to learn how I, Vishal Vashisht (B.Sc.), Insurance & Financial Advisor, help Canadians build financial confidence for life.

I firmly believe in "people don't plan to fail, they fail to plan"? You will notice that I use this quote many times and often on a regular basis.

19 years ago when I joined banking, I never thought of planning for my future due to many reasons. Today when I meet a prospect and I try to educate them so that they don't commit the same mistakes that I committed 19 years ago. If there's one thing I can change by going back into time would be to start planning at an early age. As early as in my teens. I think by now, I would've easily retired if I started in my teens.

There are many reasons we don't plan. Every year we plan to pay CRA but we don't plan for ourselves. While reading a book I found a very good chapter about planning for future. I though to share it with you because if you can read and understand the importance of planning, I think my and others in the industry will have individuals chasing them to plan. So, here it is:

Top ten reasons for not preparing for your future:

1. I will get to it as soon as I finish this one chore.

2. I am not afraid to die. I just don't want to be there when it happens.

3. My situation will be much clearer in year 2035.

4. I don't see any dark clouds on the horizon (financially). There's nothing to worry about.

5. I am afraid if I make a will, I will die.

6. I never think of the future. It comes soon enough.

7. I trust the government.

8. Dying is a very dull and dreary affair. I intend to have nothing to do with it.

9. The future is uncertain, better eat dessert first.

10. I have developed a new philosophy - I only dread one day at a time.

Some of these will make total sense, and some may not. I have heard from many 1st generation immigrants that they will move back to their birth country when they retire. How many can actually do that? A lot of us want to plan, but food on the table takes precedence and they keep delaying planning until it is too late. Although it is never too late to plan, and today is the best day to plan even if your are planning to retire tomorrow.

I feel bad when I see articles in newspapers referring to individuals still working to make ends meet instead of enjoying their golden years. The question I ask myself is what if they met me a few years ago, would retirement have turned out different for them?

I will have another post about this subject next week. Until then, think how planning can benefit you?