Hopefully everyone had a great 4th of July holiday. When I was looking back at the specific events of our Nation’s independence, I forgot just how long the war lasted. Although independence from England was declared on July 4th, 1776, it took until September 3rd, 1783 to finally win the Revolutionary War and be recognized as a sovereign nation. We had to wait over seven years to officially recognize our freedom—but it was well worth the wait!
There’s value to holding off and waiting. For example, you may not have had the experience of rewinding or fast-forwarding a tape cassette (a technology to be celebrated!), but when you finally got to the spot you wanted to listen to, the sound was that much sweeter! In our one-click world where you can download your favorite tunes in an instant or most anything can arrive at our door within 24 hours, has delayed gratification gone out of style?
In the 60’s, the somewhat famous marshmallow experiment was held with kids as the test subjects. Here’s the gist of it: the scientist would give kids one marshmallow, tell them they could eat it immediately…or wait and get a second marshmallow. The kid would then be left alone for 15 minutes and, as you would guess, some ate the marshmallow immediately while others were able to hold off. The interesting part of the experiment came later in life when the researchers found that the kids who were able to hold off had fewer behavioral problems, lower stress, stronger friendships and higher SAT scores. A great lesson for the parents out there, but there’s also value for us grownups.
Often times, succumbing to instant gratification results in buying things on credit or installment instead of saving up and paying cash. While not a universal truth, I believe most of us would eventually like to be debt free.
Personally, I was terrible at this (meaning I bought things with credit cards and never waited) up until I met my wife. I’m happy to say we’ve done a pretty good job over the past 10 years of saving up for larger purchases.
If you’re already great at this, excellent! If you could use a little improvement, I want to challenge you the next time you’re thinking about making a purchase of greater than $1,000; instead of using your credit card or some form of installment payments, save up and pay with cash.
Doing so will get you closer to living debt free and, like our Nation’s Independence, an independent future is worth the wait.