Does choosing between instant or delayed gratification have an impact on our finances?
In last week’s podcast, Qiuyan and Michael discussed some definitions and what factors may cause us to lean one way or the other.
This week, they dove deeper into the financial implications of instant versus delayed gratification, and tried to determine how it directly affects our decisions in the areas of loans and investments.
According to the results, it would appear that a good number of the respondents came under the balanced category, and that more of us lean towards delayed gratification over instant gratification….but sometimes what we say and we actually do can be very different.
According to the Federal Reserve Bank of New York, a total household debt of $13.29 trillion was reported in the second quarter of 2018. That is a lot of debt.
In that context, there are three things to be considered when taking on debt and foregoing investment.
- Wants vs Needs
- The Time Factor of Money / Compounding
- Alternatives and Motives