Mastering the Art of Delayed Gratification for Financial Success
Research has shown that people who are able to delay gratification achieve more success in life than those who don't. But mastering delayed gratification is easier said than done.
Delaying your rewards isn't always easy, but it's worth the effort! As you'll see below, there are a number of ways to increase your capacity for patience and boost your savings account:
In this post we’ll explore some of these techniques and hopefully give you the tools you need to avoid future habits which lead to financial ruin.
Systematically increase your savings rate. Develop a budget. Involve yourself in as many areas of financial independence as possible. Ask for help from people who are more financially successful than you.
The quickest way to build up your savings is to invest in the stock market, but before you do that you should be able to show that you can live on less money than you’re earning now, at least for a few years until your savings start earning interest (if that’s applicable).
The other best thing about patience is that it teaches patience. In the long run the more patience you have, the less you need to save.
If your goal is to collect everything sooner rather than later, you’ll need significantly more money than if your goal is to accumulate a lot of savings over time (without worrying about "long term" or "short term").
So if your principle goal is to be financially independent and free from debt in 5 years, it’s likely that the quickest way to get there is by investing in stocks (since that’s what most financial wisdom recommends).
If you’re looking to build upon your wealth and get out of debt on a long term basis, then you should focus on saving money and investing in real estate.
To reach financial independence in 10-15 years, it’s likely that the quickest way to do that is by building up your savings account by living below your means. But this might not be as fun or as exciting as going all in with stocks.
But that doesn’t mean you can’t be financially successful while still enjoying life to the fullest. It just means that you might need to be more patient than others (and save more of your income) before you can reach financial independence.
Conclusion