The Trouble with Instant Gratification

Posted by Mike Smith :: May 21, 2008 @ 7:08 am

As we’ve noted numerous times on this blog, instant gratification is a key contributor to living beyond our means. Having the latest and greatest products and services not only replaces ones that may already be satisfying our needs, but we also pay a premium for them.

There is something to be said for saving and waiting before making a purchase. Not only may this allow us to buy without having to borrow money or use credit, but the anticipation of the purchase may also add to the joy. After waiting (and perhaps getting a better price), we may decide that we don’t need the intended purchase, or we may appreciate it more. Thinking back to Christmas time when I was a kid, imagining the fun I would have with the toy I desired was almost as enjoyable as finally receiving it.

That pattern has continued into my adult life. Even though I’ve wanted a Nintendo Wii since it came out, I have yet to purchase one. Limited availability made the Wii much more expensive. When you were able to locate one, you generally had to buy the system bundled as a package with many extra games. I would much prefer to buy the system separately and then only purchase the games that I choose. Also, since the system is backwards compatible with the previous generation Gamecube, I might not buy any new games at all. Now that the Wii has been out for nearly two years, the market for used games is also much larger. So even though I had to deny myself the indulgence of buying the system when it first came out, I will now be able to get much more for my money. I also will be able to pay cash and avoid the high interest charged by my credit card.

A video game system is just one example of a purchase whereby you can benefit by avoiding the lure of instant gratification. If I had made the purchase right away, I would have spent more and probably lost interest in it by now. Instead, I will get much more for my money, avoid using debt to finance the purchase, and can add the anticipation of these last two years to the enjoyment I will receive if I ultimately do make the purchase. Delaying gratification will serve you well on nearly all purchases.