Can you be disciplined enough to make a plan and see it all the way through until the end? If you know anyone who has been successful at anything then you are looking at someone who delayed gratification. Gratification is a source of satisfaction and pleasure (Merriam-Webster). So delayed gratification means to slow down or wait to gain satisfaction or pleasure.
Example
| Example 1 | Example 2 |
| Luxury Purse Cost = $500 | Luxury Purse Cost = $500 |
| Your Savings (Month 1) = $100 | Your Savings (Month 1) = $100 |
| Your Savings (Month 5) = $500 | Credit Card Limit= $500 |
Analysis
In Example 1 you have someone who has made a decision that they want a luxury purse for $500 and they have $100 in savings. They decide to stay patient and save for 4 months in order to buy this purse, that’s delayed gratification.
In Example 2 there is the same decision to buy the luxury purse, but shortly after looking at their savings account, they realized that they couldn’t buy the purse yet. After looking in their wallet and finding the credit card with a $500 dollar limit, the card is swiped that day and they take home the luxury purse. This is instant gratification and something that should be avoided.
Looking at the bigger picture is key, look down the line and in the future to see how one action will affect another. I personally delay gratification because I want a big savings account, debts paid and a lot of free flowing money. Find your reason and focus on sticking to it.
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Personal Finance 101 