If you’re trying to reach a financial goal, like saving for a down payment on a house or investing for retirement, you’ll have to make some sacrifices.
And here’s where delayed gratification comes in.
The benefits of delayed gratification go beyond achieving financial goals. They’re considered the building blocks to living a well-balanced life marked by achievements.
Of course it’s easier said than done. Delayed gratification (ie. waiting to get/eat/buy/do that thing you REALLY want) can be so hard to practice, especially if you’re used to spending your money as soon as you get it!
In this article, we’ll explore a few ways you can practice delayed gratification – and how it can help you achieve your financial goals faster.
Delayed gratification means putting off things that are instantly satisfying for a future reward.
What is Delayed Gratification?
Delayed gratification is a psychological or mental state of self-control.
It means putting off things that are instantly satisfying in exchange for a future reward. For example, you may forgo buying a car now because you want to save a down payment for your home.
Delayed gratification has always been seen as a behavioral trait for financial achievement. It not only helps you achieve your financial goals but also ensures that you maintain your financial status when you hit them.
Why We Engage in Instant Gratification
Our current wants are given far greater importance than our future wants, which is why we prioritize them more highly.
This could be the reason why so many of us put off saving money for retirement or an emergency. We desire to take in and savor the sights and sounds around us. Plus, we get that sweet, sweet dopamine-good-feeling-hit right NOW.
The delayed effects of behaviors like exercising, eating well, or saving money seems both easier to put off and less awesome than feeling good in this moment, because we see results right away too.
How Delaying Gratification Can Help You Achieve Your Financial Goals
It takes a lot of self-control to make wise financial choices.
It might be challenging to fight the impulse to spend money on things that will make you feel good now. Delaying gratification, however, increases the likelihood that someone will reach their long-term financial objectives.
You’ll have more money available to save and invest when you can maintain your budget and repress the impulse to indulge. This will speed the completion of your financial objectives.
Delaying gratification might also aid in debt avoidance.
You’ll be less likely to place yourself in a situation where you have to use credit to make ends meet if you refrain from making impulsive purchases. So the next time you have a spending urge, stop and think about your long-term objectives. Waiting for what you really want is worthwhile!
8 Tips for Practicing Delayed Gratification
Having a strategy can make all the difference when the temptation for instant pleasure comes. Here are some pointers on how to exercise delayed gratification.
1. Set attainable goals.
Establish attainable goals so that you have something to aim for while deferring gratification. Maybe you don’t start with a long-term goal like your retirement fund. Instead, choose something more short-term, like paying down a $2,000 debt.
Every time you’re tempted by something – new headphones on sale, pricey takeout food or even new shoes you don’t really need – think of how good you’ll feel when you don’t have to eat those interest payments because you paid off your debt.
If you pick something too difficult or far away, giving in to temptation will be far too simple. In order to keep yourself motivated throughout the process, be sure that your goals are both reasonable and doable.
Once you hit your first goal (And you will!), you can level up to something more difficult.
2. Take it slow.
Aiming for too much at once will only lead to failure.
Start modestly and gradually increase your delay of gratification as you develop this skill. Focus on one impulse at a time before moving on to the next problem.
With the example from #1, stick to your $2,000 debt goal. Even if you’re crushing your goal in record time, layering on other goals, like saving up for a boat or a trip to Spain will complicate your initial challenge.
Slow and steady wins the race, after all. (You can put the boat and vacation on your Future Goals/Vision Board, so you don’t forget, but save them for Round 2.)
3. Be prepared for setbacks.
No one is perfect, and there will inevitably be times when you cave.
Don’t beat yourself up over it—just pick yourself up and keep going. Remember, the goal is to make progress, not to be perfect.
So you DID ‘cave’ and order a hefty Chinese takeout instead of putting it towards your debt? Stop the self-flagellation and move on. There’s no point in ordering all those tasty Wontons and not enjoying them. Eat up, enjoy the leftovers (Don’t you dare waste any!) and go back to your goal tomorrow.
4. Trust in yourself.
It takes a lot of self-control to delay gratification, but it’s crucial to have confidence in your capacity for resistance.
Take a deep breath and tell yourself you can do it whenever you question your determination.
5. Seek help from others.
Having a partner who is also trying to delay gratification can be beneficial.
This might be a buddy, a relative, or even a group of like-minded people online. When it comes to accomplishing your goals, having a support system and motivator can make all the difference.
Chances are, even when you feel super tempted and ready to give in to those new headphones, your partner in crime can remind you why you set your goal in the first place, and pull you back. Think of it like an extra layer of security.
6. Believe in the future.
Self-control is important, but beliefs about the future are equally important too.
You need to trust that if you delay gratification today, you will be rewarded with something better later.
7. Know exactly how long you have to wait.
The fact that what’s in front of you looks so appealing compared to what can’t yet even be seen adds to the difficulty of learning delayed gratification.
You should therefore become quite familiar with what is around the corner and how long it takes to walk there.
In the case of paying off your $2,000 debt, you can use a debt calculator to figure out how long it will take to pay it off.
- If you have $2,000 in credit card debt at 18.99% interest and you pay $150/month off, it will take you about 16 months (And $264.18 in interest payments) to get it to zero.
- If you’re willing to throw down more to pay it off faster – $250/month will take you 9 months (And $155.77 in interest) to zero out.
In this scenario, saying no to $25 worth of takeout a week adds up to an extra $100 in debt payment – and 7 months less to hit your target. Oh – and the amount you saved in interest? Well, that can go towards your new headphones!
8. Have a clear idea of what you want.
It will be quite difficult for you to resist temptations if you don’t have a very clear idea of how you want your money to perform for you and when.
So, set some time aside to create a vision for your goals. Have a clear idea of what you want, how you want to get there, and—most importantly—how long it will take.
A Financial Vision Board is a Powerful Catalyst to Help You Reach Your Goals
3 Benefits of Delayed Gratification
It increases focus.
Delaying gratification allows you to concentrate on your objectives.
You can devote more time and effort to achieving your long-term goals when you’re not continuously tempted to give in to short-term desires.
It improves self-discipline.
Delaying gratification also has the potential to strengthen self-control.
You must learn to manage your urges if you want to practice delayed gratification. Other aspects of your life may benefit from having this skill as well.
It can lead to a more balanced, happier life.
Delaying gratification has been linked to happier and more content people overall.
The capacity to put off satisfaction is thus a significant indicator of success if you’re trying to better your lifestyle.
Delayed gratification is something you can learn
Saying no to demands repeatedly in the heat of the moment is actually very difficult.
In reality, this kind of discipline can be excruciatingly difficult without an effective strategy. The good news is that delayed gratification is a trait that may be acquired over time.
Self-control is a collection of abilities that may be learned and taught, along with the capacity to control one’s own emotions. They are acquirable, which implies that nothing is set in stone.
As such, try to make a conscious effort to practice self-discipline and delayed gratification anytime you are faced with financial decisions. In no time, you will find out that this habit will be second-nature to you.
Final Thoughts
Saving money is regarded as a good financial habit, whether for retirement, a financial emergency, or something new in the future.
But developing the habit of saving money for later use can be just as difficult as making the decision to start working out or improving your diet.
Unbelievably, failing to save for the future has a cost: You may not be ready for a financial catastrophe, such as abruptly losing your job, or you might have to put off retiring.
So, delayed gratification may do more than put off the satisfaction you would get from an immediately pleasant activity. It may actually delay financial disaster.
Editor’s note: This article was originally published May 23, 2024 and has been updated to improve reader experience.
