Why Do We Delay? Understanding the Psychology Behind Financial Procrastination

Why do so many expats put off making financial decisions they know are overdue, despite being in their best interest?

You’re earning well. You’re smart. You’re living a lifestyle many dream of. But when it comes to savings, pensions, protection, or long-term financial planning, you pause. You delay. You put it off.

This blog isn’t about judgment; it’s about transformation. I am writing it for expats living and working in the Middle East who want to understand why they delay and, more importantly, how to break the habit. 

Understanding the psychology behind financial planning is a vital first step for anyone who wants to achieve long-term financial freedom.

The Human Side: Why We Delay Even the Things That Benefit Us

Procrastination isn’t laziness. It’s human nature. And when it comes to financial planning, certain patterns play out more often than you think.

Present bias

We tend to favour rewards we can enjoy now over those that come later. That weekend brunch, spontaneous getaway, or a table at the new restaurant that just opened feels more exciting than sorting through pension statements. For example, expats know they should review their old pensions, but finding the paperwork feels overwhelming, and they may be on hold with their UK pension administrators for an hour or more. So, you leave it for next week… again.

Choice overload

Too many investment options. Too many expat accounts. Too many unanswered questions. Too many cold calls. When there’s too much to process, we freeze. That's where we tend to stick with the status quo. What we know. What we are familiar with. Whether that is transferring our savings back into our old bank accounts, pensions or investments. Even if we know deep down that it’s probably not the best strategy.

Fear of getting it wrong

When the stakes feel high, inaction can feel safer than risking a bad choice. Even the most financially knowledgeable expat may be cautious about managing an investment strategy that is of significant value. And that value can be different from person to person. If it is for your retirement or the proceeds from a house sale, the fear of getting it wrong can add enough pressure to our decision-making, which leads us to make emotional decisions, such as selling out of investments in periods of market volatility.

Optimism bias

We convince ourselves there’s plenty of time. I haven't been here that long, and I am still settling in. That “future me” will figure it out when things are calmer or when we earn more. If any of this sounds familiar, that’s because it is. You’re not broken. You’re just human.

The Expat Factor: Why Procrastination Is Even More Common in the Middle East

Living in the Middle East as a financially capable expat comes with unique challenges, many of which quietly encourage financial delay.

You relocate to the Middle East for a higher income and no tax. You earn well and don’t feel the pressure of deductions. That creates a comforting illusion of security. This is where spending can slip out of your control and where some will begin to match their spending to new friends and neighbours. The classic “keeping up with the Jones’s” habit that you promised yourself you wouldn’t fall into.

You relocate away from an automatic pension system. When we are working and saving back home, something is happening in the background. Here, if you don’t act, nothing moves. For this reason alone, building good financial habits at the earliest possible opportunity is incredibly important.

You live a fast-paced lifestyle. Work is demanding. Life moves quickly. And long-term planning gets pushed to the bottom of the list and to next week… again. We only have so much time each week, and there are only so many hats we can wear at once. Yet, in all other aspects of our lives, we do manage to find time. Regular exercise throughout the week. Haircuts once a month. Dental checkups twice a year. Car servicing twice a year. For some reason, our financial lives do not make it to the top of the to-do list.

You still have a temporary mindset. “We’re just here for a few years.” Except a few years easily turn into a decade. Living in that temporary mindset meant that you never really took budgeting seriously. You sent money home to pay down the mortgage but didn’t replace your ISA or pension that was previously paid into for us and easy to access.

This environment makes it easy to delay. But that makes it even more essential to take control.

What You Can Achieve in Your First Year as an Expat in the Middle East

Financial planning doesn’t have to be complex, but it does need to be intentional. Here’s what many expats can achieve in the first 6 to 12 months of living away from home to ensure you are staying on track and adapting to your new environment.

Review any frozen UK pensions as soon as possible. Many are sitting idle or underperforming in the default settings. A review of your company or private retirement benefits can unlock new opportunities or highlight some surprising truths about your pension. For example, living overseas can often change the benefits available to us, such as a beneficiary's pension. This means that if we pass away while living overseas, our named beneficiary (if there is one listed) will receive the pension benefit as a lump sum, which would be subject to income tax as they can only be paid into a UK bank account. Ouch!

Speak to a UK-qualified adviser about voluntary National Insurance contributions. This small action can make a big difference to your eligibility for the full State Pension later. They will help you highlight any gaps in your national insurance record, backdate it up to six years, and continue annual contributions at the lowest possible rate. Even the smallest contribution will have a hugely positive impact to your retirement planning being the stone that starts the avalanche of positive action.

Evaluate your existing investments. Some accounts may no longer be tax-efficient or compliant with your current residency. Even some of the biggest banks in the world, such as Barclays, Lloyds, UBS, and Hargreaves Lansdown, are well-known for either closing accounts or not accepting funds from overseas. With interest rates set to reduce further over the coming years, now is the time to review strategy and look to consolidate. A qualified and independent financial advisor can help you to understand how your investment strategy fits in with your financial goals, risk tolerance, capacity for loss, how well diversified it is, and how it has performed against a relevant benchmark.

Get guidance on expat wills and guardianship documents. Without proper local structures, your family and assets could be at risk if something unexpected happens. Probate can be particularly challenging to navigate, with assets frozen and female beneficiaries with no right to benefit under Shariah law.

To learn more about the importance of having a will, click here and for guardianship documents here.

Build a budget that balances lifestyle and savings. The “Dubai lifestyle” is tempting, but small changes can fund your future without ruining your fun. Break it down into ‘needs’ and ‘wants’ to help you understand which expenses are essential and which could be classified as luxuries. Within your budget under ‘needs’, add any debt repayments and monthly savings to ensure they get the attention they deserve.

Every action here builds towards financial freedom. You just need to start.

The Cost of Doing Nothing

Let’s say you’re 40 and planning to retire at 60. To stay on track, you calculate that you need to save and invest $2,000 each month. But life gets busy, and you delay starting by three years. That’s $72,000 uninvested. But it’s not just about what you didn’t save; it’s about what that money could have become.

With an annualised 7% return, that $72,000 could’ve grown to $227,000 by age 60. That’s a big loss simply because you didn’t start on time and a great example of the cost of delay.

Financial planning is not about perfection. It’s about starting early and staying consistent. One of the first steps to getting back on track is to understand and calculate precisely how much you need to save each month. Whether you are already saving or not, saving the wrong amount each month can be as harmful as not saving at all if it's not caught early.

It’s Not About the Numbers. It’s About Who You Want to Become

Close your eyes and picture your future:

• Where do you want to live in the world?

• What does financial freedom look like for you? 

• Do you feel like you are on track or coasting towards your goals?

• Are you calm and confident? Or lack any control?

• What would the impact be if you didn't achieve this future you are thinking about?

Now ask: Who do you want to be?

• The person who reacts too late, or the one who leads?

• The person who builds peace of mind for their family?

• The person who can afford to retire early without sacrificing quality of life?

• The person who creates an education fund for your children to ensure they graduate debt-free?

• The person who is comfortable admitting they need some professional help with their financial planning?

• How would it feel if you couldn’t retire on time or help your children avoid the financial burden of a student loan?

Financial planning is not about restriction. It’s about having more choice, more control, and more clarity.

Procrastination Is Not Laziness. It’s a Coping Mechanism.

If you’ve been putting off your financial decisions, it’s not because you don’t care. It’s often because you care too much, and the stakes feel too high. Procrastination is a natural way to avoid discomfort, complexity, and emotional triggers. And money brings all three.

The good news? There’s a way forward. Research by Dr. Phillippa Lally at University College London found that habit formation takes, on average, 66 days. Some habits take just a few weeks; others, up to 254 days. It’s the complexity of the behaviour we need to change that determines how long we take to change and build a new habit.

Here’s a simple way to think about it:

• Simple habits: 3-4 weeks

• Moderately complex: around 2 months

• Complex or emotionally challenging: often 3 months or more

You don’t need to be perfect. Just show up more often than not. Progress lives in consistency, not intensity.

Practical Steps to Get Started Even If You Feel Overwhelmed

Here are five things you can do this week to start your financial planning journey:

1. Write down your top three short-term, medium-term, long-term financial goals.

2. Book a discovery call with a professional financial adviser.

3. Check where your UK pension is currently invested.

4. Set up a standing order to save a fixed amount each month.

5. Open a conversation with your partner about your joint money goals.

Each step builds momentum, and that’s what leads to transformation.

Mini Exercise: The Five-Minute Rule

Still feel stuck? Spend the same amount of time once a week on a financial task you have been procrastinating on that you would do with any other regular task like booking a haircut, making your morning coffee, or taking the dog for a walk. Mark it on your calendar. Set it in stone.

Try this:

Just do one thing for five minutes once a week.

That’s it.

Log in to your pension portal.

Subscribe to a financial podcast.

Open your Notes app and write one financial goal you want to achieve this week.

Text a financial adviser to schedule a chat. Let them guide you.

Often, once you start, you’ll find you keep going.

Don’t Wait for Later

Putting things off is human. But it comes at a cost that we then have to pay for. You don’t need to know everything. You just need to do one thing today. That’s how financial planning starts. That’s how financial freedom is built.

If this article struck a chord with you, book a discovery call today. It could be the start of the future you’ve been putting off for too long.

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