Instant Gratification is a huge detriment in our society today. Sam will write a blog on it later and expand on why we should stay away from it. I am going to talk about instant gratification when it comes to spending money.
We need to learn how to say NO to ourselves and others. If you go to the grocery store to buy your list of groceries, stick to your list. When you see those Little Debbies, say no, you do not need them. When you are driving to work and you see a car on the side of the road for sale, if you do not need a new car, say NO! This can apply for most spending situations in life.
Do not fall into want spending, where you buy whatever you want because you think you deserve it, or because you think you can. Do not inflate your expense to match your income. Remember when you were in college and could live off of the income from a part time job? Why do you seem to have as little of money now as you did in college, even though you have a full-time job now? Please do not use the excuse of student loans here because that was a choice you made and now you have to live with it. It is due to inflating your expenses as you increase your income. Be conscious of your situation, do not try to keep up with the Jones’.
Invest in yourself by saving money or investing. Make sure to do this before spending money on expenses or any other spending. If you utilize this trick, then you can make calculated want spending. Here is how it would work, you transfer your money and invest in yourself before any money gets used for expenses or life. Now you are living below your means because you are not spending all of your income, you are allocating a certain amount to investing. Next, start saving excess money from not buying “want” items. Then when you find something you want and you are capable of buying it outright, then you have the option to.
Some tactics for buying want items.
- Always make sure you can buy whatever you want outright (exceptions include buying houses, investment properties, and businesses).
- If you see something you want or think you need. Do not get it for 1 week, after that week is up, if it is something you still want, you can get it.
- Do not buy something just because you want it. Analyze it, will that thing bring you happiness long-term or will it just bring you instant gratification? If its just instant gratification, do not make the purchase.
- Shop with a cash budget so you are unable to purchase more than you have in cash.
- If you cannot afford the want item and you need to put it on a credit card or get a loan, do not purchase it.
- If you have the money to buy the want item but you are financially responsible and you are able to receive good rates of returns on your money, I support loans and 0% interest credit cards, or credit cards you pay off at the end of each month. If you are not financially responsible and these things get you in trouble, pay for the item outright.
Do not compulsively buy, make strategic and thoughtful financial decisions. Find enjoyment and pleasure from delayed gratification and stay away from instant gratification at all costs!
I hope this helps, happy savings 🙂
Your Life Tutor