Delay Your Gratification and Succeed

Tuesday, July 22. 2008

If you can have a small reward now or a larger reward later which would you choose? Why? Do your personal, financial, and lifestyle choices mimic this choice? There seems to be something going on in our culture and The Naked Economist explains they involve key bad habits:

1. Entitlements-- politicians who offer short term rewards forsaking the future help to reinforce delusions of unrealistic entitlement.

2. Flat college and high school completion rates-- school isn't for everyone, but is it the best choice for you or just an easy short term way out?

3. America's near-zero saving rates-- insane, risky, stupid, and we all know it!

4. Chronic federal budget deficits-- our own government can't even provide a decent savings model; don't look to it for an answer.

5. A lack of vision for how ambitious collective endeavors can change the trajectory of our lives-- the author explains a lack of social programs is to blame, but I don't think they are the answer as there is plenty of private sector inspiration-- learn from it and act!

Instant Gratification Nation: Can We Still Sacrifice for the Future? [Yahoo! Finance]

Posted by Alex Fisher in Lifestyle at 10:39 | Comments (2)

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I think you're absolutely right. I've started listening to Dave Ramsey this year and one of his frequent phrases echos what you are saying here: "Live like no one else, so later you can LIVE like no one else." It's the same idea of sacrificing to win which, as you point out, is difficult in our "Instant Gratification Nation". I feel the key to maintaining this attitude is to keep your eye on the goal - focus on the future and don't get as caught up in today. Personally I've started a whole new personal finance plan this year which will have me out of debt completely by 2010 - and man, am I looking forward to really LIVING like no one else! Instant gratification can't hold a candle to that big picture.

#1 Deb (Homepage) on 2008-09-29 10:13 (Reply)

I agree totally with your philosophy... BUT being debt free does not give anyone the freedom of being financially independent. Paying cash for cars, paying down your mortgage, etc. does not save you any money on 'interest' or give more wealth in the long run. Paying cash can be the most expensive way to purchase big ticket items. My family and my clients 'bank' their cash and then leverage the pool to purchase big ticket items. We filter our money through dividend paying life insurance. We have more, make more on interest and dividends and get to 'spend' more through our policies. I enjoy your blog and will link back to you. Keep up the good work.

#2 Brandi Jo Newman (Homepage) on 2008-10-26 15:49 (Reply)

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This is a personal finance blog for young professionals learning to manage money, to become financially independent, and to give back to the world. (more)