You may understand "delayed gratification" and what it means, but do you practice it?
A couple of Fridays ago, we talked about this secret key to wealth that we call "delayed gratification." We found out how it works and why it should be your ultimate mindset if you want to achieve success in your life.
Let's admit it. Living this kind of lifestyle is easier than done. But another cliché that speaks truth is this: it always seems impossible until it's done. Oh yes, it's hard, but it's not impossible!
In fact, if you begin taking baby steps now, I'm sure your future self will thank you. And me. Haha! Kidding aside, if you're clueless and don't know where to begin, fret not because I'm about to give you practical and doable tips:
1. Create a budget and maintain it.
I firmly believe that writing down should be the first step in reforming your personal finances. This does not only tell you how you can save on your finances but also show you how much money you really have after taxes. The latter is important in keeping in mind how to live within your means.
For more information on budgeting, please click visit this post: Why You Need a Budget.
2. Know the difference between needs and wants.
This is a no-brainer. I'm sure this is self-explanatory. No, a pair of Raybans is not a need.
3. Stop acting on impulse!
I find it funny that I can exhibit self-control in a mall, even on a sale, but find it hard to resist a cute find online. Are you the same? To curb these shopping impulses, these are what I do that you should do:
- I give myself at least 3 days to think before buying something.
- I examine my motive: do I really want to buy it because I find it beautiful or durable or do I just want it because somebody else has it?
- I only allow myself to buy a "want" if I have already paid everything I need to pay: tithes, bills, emergency fund, etc. (See this post about Budget Entries)
- I only buy a high-ticket item if I haven't bought another high-ticket item in the last 6 months. In my case, though, I super rarely buy expensive items like gadgets.
4. After finally deciding to buy something, still be practical.
So a week has passed and you still want to buy the item. You also examined your motive, too, and you have already paid everything you need to pay. You passed! But that doesn't mean you should spend all your remaining money.
It's very important to stay practical. Who knows what kind of emergency will happen next? You may notice that the general trend here is to think more about the unsure future. This is actually the heart of delayed gratification. This means you need to still curb your spending and you get to live within your means.
I ask myself questions. For example, is there a cheaper alternative to that pair of shoes? If you shop online like me, finding alternatives is easy because prices are competitive. Is there free shipping? What offers it? I have a lot of go-too websites like Zalora.
Also, can you buy it second-hand? While there are stuff you should brand new, there are things that are safe to buy preloved. For example, wooden furniture (antique anyone?), books, gadgets, baby stuff (because we know how quickly babies outgrow their things!). For these things, eBay is a good place to be because you can see the sellers' reputation.
I even read about successful men who never buy brand-new cars. I found it so interesting because we're talking about millionaires here! For this matter, Carmudi Philippines is a good website to visit!
5. If you have a regular expensive (or even a relatively inexpensive) habit, add up the total amount you spend on it monthly and yearly.
A cup of coffee from Starbucks may be affordable, but if you drink a cup a day, 5 days a week, that would easily be P3,000 a month and P36,000 a year.
If you invested that amount into a mutual fund, for example, the P36,000 can easily become P40,000 in the first year. It multiplies per year. Multiplies, mind you, not adds. That and you aren't contributing to the earth's plastic trash, too. And your body will thank you.
6. While stopping your unnecessary habits, research on investments.
Instead of spending your income on things that only your present-self will benefit, look for things that will make your future self and family happy.
Photo from Instagram
Look for life insurance. Look for mutual funds. Study how stock investment works. Confession: I did these things for a year before I started writing my Finance Friday blog section.
Personally, I'm now looking into Sun Life's mutual fund program as an alternative option to COL Financial.
Bottom-line: Spend your money on things that grow, not on things you throw. (Uy that rhymes!)
7. Remove the FOMO mentality.
FOMO means "fear of missing out," and it's a mentality that I'm still working on completely removing. Basically, it means getting on with the trend and keeping up with the Joneses.
(See this post about Social Climbing.)
But it doesn't matter, really. I find that most trends stop to matter after a very short period of time. Thus, it is a waste of time.
So everyone has seen this movie except you (or so it seems). Before it gets phased out, you spend P500 to see it (movie + food + drinks + transportation). After that, what happens? You can now relate to conversations -- so what? In 2 weeks at most, those conversations will stop. In a year, everyone who has cable will have seen the movie, too, only for free. But during that time, it doesn't matter anymore.
So stop the FOMO; it's not worth it.
8. Pray and spend time with the Lord.
These words may be bitter to swallow, but those who only want to be rich will skip this step. It's sad but true. But you see, without God's guidance, there is no real success. Without a prayerful life, money becomes a destroyer rather than a life-giving tool. We can't contest this; it has happened to so many.
If you really want to be successful in all aspects of your life, know God deeply. In my experience, this is the best way to practice delayed gratification because God doesn't give instant answers to prayers. Instead, He works in us inside-out to mold our character and to prepare us for success. Just how awesome is that?
..........
I'm sure there are a lot more tips we can follow to live a practical life focusing on delayed gratification. If you have some tips with you, feel free to share them in the comments!
Disclosure: Carmudi Philippines paid for the mention.
_________________________________________________________________
Do you like this post? Never miss out again when you click on the cute bunny below:
Or by entering your email here:
