This post is from our regular contributor, Kristi.
Most children are taught the merits of delayed gratification in preschool and Kindergarten.
We’re taught that you need to earn the things you want through hard work, patience, and attention to detail. Good things come to those who wait, so wait your turn, and you’ll reap the rewards, etc. Unfortunately, losing sight of that basic tenet of life is partially what landed my husband and myself in debt right after we were married.
Instead of waiting for the next pay check to cover the cost of something we wanted or needed, we would pay for the item in question with our credit card, thinking that we would just pay off our debt at the end of the month.
Then life would happen, and unexpected bills would arrive. Suddenly we found ourselves pushing back our credit repayment and only paying the minimum amount owed. Because of life experiences happening that we had no control over, like my husband needing to medically discharge from active duty, we found ourselves seriously hurting for money.
We have learned from our mistakes and now realize just how much delayed gratification could have protected our finances. So that you can learn from my mistakes, here are three reasons that practicing delayed gratification truly boosts your financial situation.
1) You will save money
Delayed gratification really can save you money. By deciding to hold off on a purchase, you can take advantage of better deals that could pop up on the same item down the road. By price watching an item on a website like CamelCamelCamel, for example, you will know that you’re getting the best deal.
Also, by saving the whole amount for an item, then finding a great deal, you can save the difference. Put the difference between how much you expected to pay and what you actually ended up paying into a savings account. Do this for every purchase possible and just watch your savings grow.
You will also save money by simply deciding not to spend it. If you aren’t willing to use a credit card for a purchase, or get a loan to cover the costs of a project, then you will save yourself interest fees and other charges that occur along with a line of credit.
2) You will have a better credit score
Our situation is definitely not unique. According to the Household Debt and Credit Report, which is a quarterly snapshot of American debt published by the Federal Reserve Bank of New York, “As of June 30, 2015, total household indebtedness was $11.85 trillion.” Betweeen student loans, mortgages, or consumer debt, most Americans are seriously struggling with paying off debt of one kind or another.
Not all of that debt is due to mindless spending or living beyond our means. Most families are trying their absolute hardest to make ends meet. With that being said though, I know that we wouldn’t have been so badly off if we hadn’t already racked up considerable needless charges on our credit cards.
By not practicing delayed gratification, we seriously wrecked our finances. That was five years ago, and we are still trying to mend our financial situation. I’ll be the first to tell you that some of our poor financial decisions are the reason that we are still slowly rebuilding our credit score.
Sometimes it’s best to seriously consider whether or not to even use credit. If you do decide to get a credit card, just remember that credit cards are useful tools, but in the wrong hands they can amount to financial ruin. Do yourself and your finances a favor and legitimately question each credit card transaction. Delaying gratification by holding off on a purchase could mean the difference between a good or bad credit score.
3) You will have fewer financial regrets
Delayed gratification means no more impulse buying. Although impulse buying can be beneficial at times, it’s a practice that usually causes either debt, buyer’s remorse, or sometimes both. Delayed gratification forces you to seriously question each purchase, and you’re more likely to spend a considerable bit of time on all financial decisions.
Jumping into a project by taking on a loan, buying a new car too soon, or racking up credit card debt on needless purchases can really harm your finances in the long term. Simply delaying on an expense can really help your finances in the long term. Sometimes, just stepping back for a week, a month, or even a year can mean that you’ll be able to live your life without financial regrets.
Slow down and enjoy the delay
It’s funny how a delay, something that typically holds you back from achieving your desired goals, is the very thing that will help you achieve your financial goals. Delayed gratification helps you to save money, make wise financial decisions, protect your credit score, and prevents regret. Something as simple as holding off a bit on bigger purchases, exploring your options, or waiting for a better opportunity to come along will help you make the most of your money and boost your financial situation.
How has delayed gratification helped your finances? Have you ever had a situation where you wished you waited longer before acting on a purchase or taking out a loan?
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Lots of people enter adulthood and then struggle with delayed gratification even though they were taught it from an early age. That’s because it is much easier to do when you are forced into it by your parents or teachers. Once you become responsible for yourself, then that feeling of being in charge and in control can and does throw delayed gratification right out the window.
You’ll also find that you actually buy less. If you wait to purchase something, many times you’ll just decide against buying it all together.
There have been many items I’ve put on my wish list. Guess what? I still don’t own them! Delaying can definitely be a boost to your finances!
PFUtopia That sentiment was definitely true for me at the beginning of college. My “wild and crazy” years were all about ignoring my finances.
DebtChronicles Yes, absolutely! So many times I will put an item in my Amazon cart and then forget about it. A month later, I will have no idea why I wanted that item to begin with.
Mrs Crackin the Whip Waiting to buy an item, and then later deciding against it, really helps crack down on wasteful spending.
That is true, delaying is helpful and saves a lot, especially if you buy based on emotions. I try to practice delaying as well!
I’m practicing delayed gratification religiously these days while I’m trying to pay off my debt. It also helps my family save a lot and enjoy what we have.