How Delayed Gratification Can Help Transform Your Finances

 

Psychologist Walter Mischel  conducted the Stanford Marshmallow Experiment as part of a study on delayed gratification.

Children were offered a choice between one marshmallow now, or two marshmallows if they waited for a while.

The study found that children who could delay gratification and wait longer for a bigger reward tended to have better life outcomes in various areas throughout their lifetime, including overall educational attainment and money management.

This study provides important insights around the value of delayed gratification when it comes to personal finance.

While social media often tempts us to spend impulsively on unnecessary expenses, being disciplined with our spending habits and focusing on delayed gratification can lead to better financial health.

 Benefits of delayed gratification:

 

Wealth accumulation. By choosing to save and invest instead of spending on impulse, you give your money the chance to grow through compound interest and other returns. Even small, consistent contributions to your savings or investment accounts can add up to significant amounts over time, helping you reach big goals like buying a home or preparing for retirement.

Financial stability One of the pillars of financial security is an emergency fund, a safety net for unexpected costs like medical bills or car repairs. Practicing delayed gratification makes it easier to prioritise savings, so you’re prepared for life’s curveballs.

Debt reduction:  Delayed gratification keeps you from relying on loans for things you can’t afford right away. Avoiding unnecessary debt frees up money to pay off what you already owe, easing the pressure of high-interest payments.

By Martha  Songa

miss.songa@gmail.com