Delayed Gratification
Choosing to wait for a larger future reward instead of taking a smaller reward right now.
What You Need to Know
Delayed gratification is the skill of trading short-term pleasure for long-term gain. People who can delay gratification tend to build more wealth, stay out of debt, and hit their financial goals faster.
Why It Matters:
- Saving for emergencies instead of impulse shopping
- Investing raises instead of upgrading your lifestyle
- Staying patient during market volatility
Build the Skill:
- Practice waiting 10 minutes before non-essential purchases
- Visualize how future-you benefits from today’s discipline
- Remove temptations by unsubscribing from promo emails
- Set specific savings goals and track progress weekly
Sources & References
This information is sourced from authoritative government and academic institutions:
- consumerfinance.gov
https://www.consumerfinance.gov/consumer-tools/money-as-you-grow/
Related Calculators & Tools
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Related Terms in Personal Finance
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A conservative car buying guideline: 20% down payment, 4-year maximum loan, monthly payment ≤10% of gross income.
50/30/20 Rule
A budgeting guideline allocating 50% to needs, 30% to wants, and 20% to savings
Analysis Paralysis
Overthinking choices until you miss the window to act.
Automated Savings
Setting up automatic transfers so saving happens without willpower.
Behavioral Finance
The study of how emotions and mental shortcuts influence money decisions.
Budget
A spending plan that tracks income and expenses to ensure you're living within your means and working toward financial goals.