So what exactly does it mean by delaying your gratification anyhow? Patience is not something we are born with, though some personality types are pretty laid back and seem to have more of it than others!
Over the years it has been my observation that when we take our time and think over any decision we make, the outcome is generally better than if we act on impulse. Naturally, as humans, when we want something, we hate to have to wait for it. We want it now!! This type of emotion can really get us into major trouble. There is a 4 letter word that comes to mind when talking about this subject. Anyone care to guess what it is?
D-E-B-T, debt!! Since we live in an instant gratification world, if you can't afford it, charge it. Watched any television lately? Have you seen the ads for new vehicles by chance? Do you notice their marketing plan is to influence you to go finance a new car? The majority of America drives around in vehicles that they couldn't afford. There is nothing financially smart about leasing or financing a vehicle. However, most people when they go to buy a new car only care about one thing, getting the new car! As long as they can afford the monthly payment, they don't care about the interest and payments for the next 5 years. (How many people get that car, then within 12 months, are already wanting a new one?)
Take that scenario above and think about what happens next. You take your car in, after only owning it and making payments on it for 12 months, and try to trade it in. Your car, which you financed $26,000, is now only worth $14,000 for the trade-in and you still owe $23,000 on your loan. Uh-oh, that is negative equity, and that is definitely not good. How many people then try to roll over that negative equity into an upgrade, using some of the available rebates, and finance the new car, which was sticker priced at $35,000, yet your loan is for $39,000? Ahhhhh, you got the new car you wanted, more debt, more negative equity, and a higher monthly payment. :-(
Lets look at this situation from a different perspective. Lets say you wanted this nice car, which brand new would cost you $26,000. Though you could put 20% down, and finance the rest, you decided to delay your gratification. Instead for the next 12 months you continued to drive your existing car, which you owned outright, and set aside money each month in your budget to save for a new car. Now you decide it is time to get the car. Instead of looking for one that was brand new, you find the make and model of the car you want, which happens to be a year old now and has 11,000 miles on it. Because you delayed your gratification, and saved money for the past 12 months, you make an offer of $14,000 cash, and they take it! So, what happened?
Because you waited 12 months and saved your money, you were still able to buy the car you wanted, however, it was a year older with 11,000 miles on it, but you saved $12,000 plus interest. This is just one example of delayed gratification.
Now without thinking on the lines of debt, let's talk about the harder form of delayed gratification. That would be not buying something, though you have the money and can afford it. One of my mentors once said, "If you think spending money is hard when you don't have any, having money and not spending it is even harder." Can you fathom that? If you have the money, why wouldn't you buy what you want?
And the survey says? That is the reason you have a lot of money. Heh heh, think about it. The people who learn to delay their gratification, make smart investments with their money, and put off buying pleasurables until they really can afford it, avoid the trap that most of us fall into. Instead of getting what they want through acquiring debt, they save and invest, then pay cash for what they want. You will quickly realize, the more money you have, that cash is simply a tool. Once you are able to purchase anything you want, the things you want change.
Delaying your gratification is tough. We live in a world where everyone judges you based on your status in the community. It is sad how we live our lives, more concerned about what other people think of us, as opposed to living below our means and making smart decisions for ourselves. We make impulsive decisions that cost us big dividends in the long run just to "show off" our success. Before you make any major decisions in your life, in any area of your life not just financial, set a new 24 hour rule for yourself. Never buy on impulse, always think it through overnight. Ask yourself; Do we need it? Is it worth it? Can we afford it? Why do we want it? Is it a good investment? What is our return on investment?
You will be surprised at how thinking a decision through, being patient, can save you from making some really big mistakes. We are not perfect, and have learned by making plenty of mistakes ourselves. Though delaying our gratification is not always fun, in the end, it has always paid off!
Blessings,
Ron - TheUnaverageAverage
Isagenix Nutritional Cleansing
