When Windows Vista launched, I thought about buying a new PC. Instead I waited and waited. I listened to complaints about Vista and didn’t make the purchase until Windows 7 arrived. By then, computer prices had fallen, so I avoided both extra cost and hassle.
Putting things off can be an effective way to spend less, and it’s a lot simpler than many other approaches.
Procrastination gets a bad rap, yet most of us are exceptionally skilled at it. Why not channel that talent into strengthening your finances? It’s easier than you might expect. See a movie next week instead of tonight. Tell that car dealer you’ll wait a few months.
You may assume it makes no difference, but over the long run you’ll spend considerably less and feel better if you procrastinate wisely. Below are five reasons this tactic works, grounded in scientific studies on the power of saying, “Maybe later.”
1. Your Opinion Will Often Change
We frequently get swept up in the impulse to buy immediately, but what if we held off? Denis Darpy of Paris Dauphine University summarized his study on consumer procrastination like this: “Procrastination predicts if a consumer will effectively buy or not.” Researchers found that the more you wait, the less likely you are to complete the purchase. Now you know.
Experienced salespeople have long understood that if someone leaves to “think it over,” the deal often evaporates. So make a habit of postponing purchases, especially when excitement is driving your decision. You’ll still purchase the essential things you need, but frequently you’ll change your mind and keep your cash.
2. Prices Might Fall
Sometimes procrastination only delays an inevitable purchase, and that has its benefits (see point 5, below). But waiting can also reveal better prices. Even for items you’d normally buy quickly, you can sometimes save by holding off. For instance, Kayak.com offers a price forecast feature showing whether a flight’s cost is trending up or down (check the “price trend” box in search results).
Almost any product’s price can drop while you wait. Tech gadgets are a common example — early buyers often pay a premium for new hardware. Taking extra time also lets you compare sellers and find a better deal. And you might avoid missing upcoming sales by buying too early. Black Friday will arrive eventually, so why not delay a bit?
3. Waiting Can Be Good for You
Delaying a purchase can be psychologically beneficial, according to research from Angelo State University. The study on delayed gratification and life satisfaction concluded that “People who are able to delay gratification experience less regret than those who cannot, and are more content with their lives.” While procrastination isn’t always identical to delaying gratification, for many purchase choices it effectively is.
This is essentially the science behind what common sense already suggests. You’ll rarely regret waiting to buy something, and you’ll likely run into financial strain if you try to have everything immediately.
Being strapped for cash because you keep purchasing nonessential items probably won’t increase your happiness. That last statement is my view, though perhaps someone will conduct a study titled, “The link between being broke and reduced life satisfaction.”
4. You May Discover a Better Option
Very few purchases require an immediate decision the moment you first spot them. If you wait, you might find you didn’t truly need the item — as mentioned earlier.
Alternatively, you could find something else that fits better, costs less, and proves more useful. In short, a little time and reflection often producesmarterbuying choices.
5. Buying Less Often Saves Money
We began with research that shows waiting can change your mind about purchases. Even for things you must replace periodically, procrastination can be beneficial. For instance, if you use appliances a few extra years rather than replacing them immediately, you’ll purchase fewer over your lifetime. Cut down the frequency of routine purchases and set aside the savings.
For academic backing, see the paper “Consumer Durables and the Optimality of Usually Doing Nothing.” Behind the math and formulas is this nugget in the introduction:
It is quite possible that the best policy for a rational, optimizing agent [that’s you] is to do nothing for long periods of time.
Doing nothing? That sounds pretty reasonable. Procrastination can be one of the simplest ways to conserve money.
Your Turn: Have you ever used procrastination to save money?
