Delayed Gratification

Delayed Gratification

I’m often asked what I see as the key to becoming a successful, wealthy individual. Makes sense given what I do for a living. Over the years, I’ve picked up on certain character traits that, more times than not, lead to a successful outcome when it comes to someone’s finances. I bet you’ll never guess what today’s tip is. If any of you guessed delayed gratification, I’d be impressed, because guess what, it’s delayed gratification.

Let me explain. I’m a firm believer that the only predictable way to achieve true wealth and success takes time. Now, don’t get me wrong, there are rare exceptions, but I believe most of them are luck rather than a predictable plan. Someone who bought Bitcoin on a whim at a dollar had no clue it would skyrocket, and most people chasing the quick win haven’t fared so well; it’s currently down 50% over the past year.

A Tale of Two Clients

I had a client years ago who came in hot. Aggressive, wanted to retire in a short window, taking on all sorts of crazy risk, high leverage, high risk, high return plays. Always showed up with the next great scheme. Around the same time, I had another client who made less money than that first guy, every time. But every time he got a raise, he increased what he was saving right along with it. Slowly. Consistently. No drama. That second client retired five years early and is living the retirement dream right now. The aggressive one is still working part-time in his so-called retirement.

That’s the whole argument in one comparison. The clients of mine who’ve amassed the most wealth did it methodically and consistently over time. They invested early or were the first ones into the office. They put in extra time or extra dollars, one day or one dollar at a time. It was a slow grind, and sure, they were opportunistic when the moment called for it, but the plan underneath it all was delayed gratification.

These people opted to save the extra dollar instead of spending it on something gratifying in the moment. They haven’t used all their vacation time, ever, because they kept putting in the work, day after day, year after year. They got comfortable being incrementalists rather than decrementalists. Great things are worth the wait.

Don’t get me wrong, these people still have big, hairy, audacious goals. They’re just willing to do the hard, unglamorous work to get there. They have a long-term vision, and they execute it day after day until it shows up.

On a Personal Note

I’ll give you a personal one. I’ve lost a good amount of weight lately, and I did it exactly the way I’m describing here. Slowly pulling things out, one at a time, making small adjustments, and sticking with them. In the past, I tried the radical route, starvation diets, doing too much too fast, and I always bounced back to where I started, sometimes worse. This time, I lost a pound or two a month, made small changes, and let them compound. It worked because it was sustainable, not because it was dramatic.

That’s the same choice my clients face. Person A radically overhauls everything, crash diets, extreme moves, and wants the marathon next week. Person B slowly adjusts, adds a little exercise, loses a few pounds a month, and keeps making small changes toward a healthier, more sustainable life. We’ve all met Person A. Most of us have been Person A. The ones who actually keep the weight off, and the ones who actually retire early, are the Person Bs.

The Mental Shift

Delayed gratification isn’t a strategy; it’s a mentality shift. I don’t claim to be your dietician, and I don’t want to be. What I do want, for myself and for my colleagues at Diversified, is to help you level set your state of mind so you’re prepared for success. Once you get comfortable with the concept of delayed gratification, you stop yearning for instant gratification. And once that yearning fades, you start making decisions that affect your long-term financial health with a much higher probability of success.

Shift the mindset, and the outcome will thank you. I’ve watched this play out thousands of times, and I can tell you with confidence that the best, most sustainable financial plans I work with belong to people willing to put in the work now for the reward later.

As always, stay wealthy, healthy, and happy.