In this article, we will discuss what is 'Delayed Gratification' and how having this mindset can help you in your retirement planning and savings journey.
What is Delayed Gratification
Delayed gratification is the act of resisting an impulse to take an immediately available reward in the hope of obtaining a more-valued reward in the future.
How to Integrate the Concept of Delayed Gratification in our daily life?
1. Differentiate between a need and a want clearly
1. Differentiate between a need and a want clearly
It is imperative that we as human ask ourselves regularly on what is needed in our daily life. In many cases, 'want' can quickly turn into 'need' if we are not careful. This is called 'lifestyle upgrades'. For example, what we need in a day's life is a balance diet. However, some will says that I 'need' a good environment for my meals, good quality ingredients like organically grown food items. Worse still, having Nescafe or normal americano is no longer a choice as Starbucks, Coffee Beans, Illy coffee is the bare minimum requirement for some. This will definitely escalate costs and reduce your savings. Remember: It's not how much you earn but how much you save
2. When you have achieved a goal, set a later date to receive the rewards
When you have achieved a goal, say a sales target, a fantastic achievement in your life or even career, plan for the rewards slightly later or combine
3. Have a smaller budget for the rewards
Instead of spending on a Tumi bag or a branded watch when you get a promotion or dine at a fancy restaurant, it could be a short weekend getaway, a road trip or treating yourself for a nice but budget meals at a local restaurant. Setting a smaller budget will definitely help you to save up for retirement and rainy days.
4. Go for rewards which costs no money
Although most of the good things in life costs more money, there are also numerous things in life that we can enjoy without costing money. For example, going for a hike, a picnic, cycling with some good buddies all doesn't costs you much but it's equally enjoyable. Those outdoor activities and sweat will also help your body to release 'endorphins' hormones which will make you feel happy.
Although most of the good things in life costs more money, there are also numerous things in life that we can enjoy without costing money. For example, going for a hike, a picnic, cycling with some good buddies all doesn't costs you much but it's equally enjoyable. Those outdoor activities and sweat will also help your body to release 'endorphins' hormones which will make you feel happy.
5. Get yourself occupied with either reading, exercising or any hobbies which would have cost very little but bring a lot of fulfilment and contentment.
There is actually a myth saying that when you retire, you spend less money. It sounded very logical and true but the truth is when your mind is not occupied, you will want to do something. The need of your body and mind to do something will probably end up costing you money. So what this has got to do with Delayed Gratification? Being busy with work, activities simply means that your mind is occupied. When your mind is occupied, you wouldn't think of indulging yourself, enjoying yourself and that definitely helps in the case of Delayed Gratification.
There is actually a myth saying that when you retire, you spend less money. It sounded very logical and true but the truth is when your mind is not occupied, you will want to do something. The need of your body and mind to do something will probably end up costing you money. So what this has got to do with Delayed Gratification? Being busy with work, activities simply means that your mind is occupied. When your mind is occupied, you wouldn't think of indulging yourself, enjoying yourself and that definitely helps in the case of Delayed Gratification.
Conclusion
Delayed gratification is one of the hardest thing to do for most people, especially those who grew up with a silver or golden spoon. Initially, you will feel uncomfortable, uneasy and question yourself if the 'pain' worthwhile. However, over time, it'll develop into a habit and you will start to enjoy simple things in life. Do keep in mind that fresh air, clean water, greeneries which all our ancestors enjoyed don't cost them any money isn't it? My view is that if we can spend more time with mother nature and keep our body and mind occupied, our life will be contented and will not keep yearning for material things which brings short term joy only. I for one no longer enjoy much of material things so I keep my lifestyle simple and look for more meaning in the small little things in our day-to-day life.
