Monday, September 04, 2006

The P in PPF don’t stand for Procrastination.

I didn’t put money in my PPF account today.

So what? Do it tomorrow or the day after tomorrow. Hope I do it tomorrow. Cause if I don’t it’ll cost me a few hundred rupees. How? Interest for a given month is calculated on the lowest amount in the account between the 5th and last day of the month. If I don’t put it in by the 5th ie tomorrow, I loose the interest for this month. And 4.5%pa minus taxes that I get from the bank wont take away much of the pain of loosing this months tax free 8%pa. After taxes that works out to a 0.67% loss.

If I care so much about this 0.67%, why did I not do this today? If fact, not on the 1st itself? Why the procrastination? May be it’s because I’m too lazy to go to the post office. May be it has to do with a certain people aversion that keep me from calling up the PPF agent. Maybe I’m afraid that my math is wrong and putting money into PPF at this time is not such a good idea. Maybe this search for a root cause to procrastination is actually a search for an excuse to procrastinate having to deal with it.

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