From an early age, many of us are taught to wait for the reward while putting in work and patience, making the end result all the sweeter. This is the practice of delaying gratification, yet many of us nowadays have lost sight of its benefit. People now are in massive debt because they have not heeded this life proverb. Often, people will not consider waiting for their next paycheck to make purchase, but will pay for the item on a credit card now, thinking they will then just pay off their debt once they have been paid. However, unexpected expenses have a tendency to arise, leaving the credit card bill to become bigger, placing you further into debt. And as credit card debt increases, interest rates will often follow, leaving you in a hole that it difficult to get out of. Yet by remembering the words from our youth, this type of situation can be avoided and it bring about many benefits. We will discuss some of the reasons of why delayed gratification can be beneficial for your present and future financial situations.
By using the practice of delayed gratification, you will be saving money in the long-term. When you hold off making purchases, you will then notice that sales and offers will appear later, allowing you to make the same purchase under better circumstances. For example, waiting to buy a winter coat in the off-season (spring, summer) will almost guarantee you a better price. As a money-saving practice when you buy items on sale, take the difference of the original price and the sale price and direct that money towards your savings account. This is a great practice to get into, and it will definitely set you up for a better financial future. Also, you may decide not to make the purchase after a while of waiting. This will save you the money you would have spent on the product as well as fees from loans or credit cards.
By postponing purchases, you will also be reigning in your spending, which will in turn cut down on your debt. Many families have an overwhelming amount of debt from trying to live above their means, making it very difficult if you’re trying to secure a mortgage or a loan. So be careful in the way you use a credit card, and take the time to question each purchase you make with credit. Get into the mindset of living below your means, as this will also prepare for you any unexpected expenses that may occur. By establishing this practice, you will see your credit score increase, enabling you to purchase the things you need in the future, such as a house or a car, or even smaller things like a mobile phone.
By using the practice of delayed gratification, you will notice that thought and reason will enter each financial decision, eradicating impulse buying which often leads to regret. If there is something you really need or want, taking a step back for an extended period of time will help you evaluate it’s a necessity, or if your desire wanes with time. Perhaps you are considering a new project and you need a loan, or you want a new car, as yours is still in good shape, but outdated. But if you decide to purchase these things too soon without considering the pros and cons of each decision (while conducting research as well), you could really harm for your financial situation as these are large purchases that can have a long-term effect. The larger the purchase is, the more time you should think about it. But also remember that smaller purchases add up, so be keep track of the small things you purchase as well, as those can affect your buying habits, which in turn affect your financial state.
All of these simple measures will help set you up for a more secure future, one that is not riddled with debt, stress, and regret. Keep up with the practice, and it will help you achieve your financial goals with less hassle. Initially you might think that you’re punishing yourself by waiting to indulge in a purchase, but actually you are rewarding yourself with something that can you give you something more than momentary pleasure, which is peace of mind, and financial stability. Don’t be afraid of the delay, as you will be rewarded.