3 Ways Practicing Delayed Gratification Might Help You Save Money
Author: Deb / Date: August 6, 2023 / Tags: delayed gratification
(MoneyHippo.com) – In the world of technology, where information is at your fingertips, and you can have pretty much anything delivered right to the door, it’s easy to get lost in the sea of instant gratification. But doing so can come at a high cost. Delaying gratification can help pay for things with cash rather than living beyond one’s means. Incorporating some delayed gratification practices might also mean the difference between whether or not you can even retire. Here are three ways the technique can help save you money.
- Using Alternative Modes of Transportation: While you might need a car to get to and from work, cart the kids to school, or run errands, what you don’t need is a huge car payment weighing you down. Instead of buying a car as soon as you have a little extra room in your budget, consider using public transportation or carpooling while you save for part or all of the vehicle’s purchase price, minimizing the amount you borrow. That way, you’re not paying as much interest to the bank, saving you big in the long run.
- Reinvesting Profits: If you own a small business, turning a profit can be exciting. Those hard-earned dollars might tempt you to spend on a big-ticket item or a vacation. Yet, instead of reaping the benefits immediately, consider putting most of the money back into the business. Investing in your budding company could help it grow quicker, increasing profits more quickly. The strategy could help you build a stronger business, and you can still get the item if you want it later.
- Optimizing Later Returns: Try looking at the budget to see if there are any luxuries you could reduce or eliminate. Take the savings, no matter how small, and invest them into a retirement account. Better yet, have the bank automatically invest them so you don’t miss them. Consider doing the same with any surprise money that comes your way: Christmas bonuses, gifts, etc. Before you know it, you’ll have a nest egg to help with retirement.
Remember, even small sacrifices in the short term can net you big gains over time.
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