Definitions: Delaying gratification is a pretty simple fundamental. Simply put, it means making a choice which limits the ability of getting something now, for the pleasure of being able to have something bigger or better later.
Human often make purchase on impulse or emotion
Lets’ put purchasing on daily necessities and needs aside, often then not when we make a purchase, the trigger point is either emotion or impulse. When your decision to purchase is based on these 2 factors, that is when you will part with you money. Therefore at such moments, you will have to summon your logical hat to come into the decision making process to help you make a wiser purchasing decision. You might be surprise when this happens you will logically realise you do not really need to make that purchase.
Does the following thoughts sounds familiar?
Oh, that is the limited edition watch/soccer jersey and if I don't get it now, i will definitely regret! It's so cool and impressive! Doesn't matter the price, i will buy first and earn the money back later!~
And in no time you will be asking the shop attendant
Hello, how much is this? Got discount?"
Honestly, at that state of mind, with or without discount you will still buy it, as it was an emotional buying!
How about this?
Oh my! this new hand bag from LOUIS VUITTON looks gorgeous on me!!!
similarly you will soon ask,
Excuse me, how much is this bag? "$7,200"! Ok. Thanks. Wah Lao, so expensive ah, but i like leh...
And in no time you will be asking the shop attendant to pack it up.
Excuse me, got new piece?"
There goes a swipe on your credit card and potentially a 1 or 2 months salary is gone. (unless you are super duper rich!)
So, based on the above scenario, if Delayed Gratification is applied well, you might not make the purchase on impulse. No, I’m not saying that you cannot pamper yourself with luxurious products or what you love, but put some logical thoughts into it to consider if the amount is worth the purchase. Who knows, after delaying for a week, your gratification is gone and the good news you still have those money with you. Furthermore, these are not assets, so why spend so much on them?
Delayed Gratification will definitely do you good not only financially but possibly in your Life. However, provided you do have the luxury of time to delay. There are bound to have certain situations where you have to purchase / get something immediately rather than later. Time may affect your decision in this aspect, so avoid last minute purchase.
An individual’s ability to delay gratification relates to other similar skills such as patience, impulse control, self-control and willpower, all of which are involved in self-regulation.
Can you recall when was your last purchase which you regretted? Presumably, you had made a purchase before and it’s something that you actually wanted, and you bought the offered item when the sales person told you that it’s the last day of offer. And soon after the purchase you realised that wasn’t the best deal and you actually paid more. So marketers are leveraging on your impulse on buying. If you would have exercise delayed gratifications, you would have had a better deal and save some money or after much consideration you can actually do away with this item.
At least 3 Quotes to determine a purchase
Always remember to get 3 quotes to finalize your purchase, of course without compromising quality, it must be an apple to apple comparison. A few years ago, when I was sourcing for an Interior Designer & Contractor for my flat, I actually got 5 quotes and my savings compared to the first quote I had was almost $12k (30%), these savings actually allowed me to purchase more and better furnitures for the house which was definitely great! And I make sure I let the potential contractors know that I am comparing. As such, I actually got lucky and got one of the contractor to do his best to meet my budget. Of course, that is because I have the luxury of time to draft my renovation requirements in details and to source for contractors.
So in a long run with Delay Gratification you will be able to “use” your money as a tool more wisely, enjoying great savings without compromising the quality of products or service you are expecting. This fundamental of telling your money where to go will definitely help you in the stage of Finance Management and speed up your savings to start investing.
My recommended purchasing habit (requires luxury of time)
A habit which I encourage all to adopt to save on purchases I need or want (sometimes we do need to pamper ourselves with simple luxurious stuffs) I will do the following and often I will have great savings.
Here are some examples i have, while i can’t possibly list all of them, the concept are the same and you should be able to apply them in your situation.
IT Gadgets
These are stuffs which will definitely depreciate in value, so being an early adopter doesn’t do your wallet good. New launches are always expensive, therefore I will prefer being a follower on technologies instead. Looking on the bright side, being a follower also means that by the time you make your purchase, the technology which might have numerous patches or fixes after the early adopters has helped to identify the bugs or issues and the new batches are more stable for the “followers”. E.g. Smart phones, tablets, etc…
I will usually wait for the next up coming IT Show which happens in Singapore on a quarterly basis. Depending on what you are getting, it might cost cheaper or comes with loads of free gifts. Tips: you can browse the calendar from itfairsg.com and bootstrike.com for the list of brochures and review the best deal before heading down to make your purchase, better still to avoid the crowd and long queue, try going to the outlet in residential shopping mall to get the same deal. one of my best deal was saving 30% on a LG 32″ and a 40″ LED TV from retail price with free delivery and free mounting.
Not to forget when you delay your purchase and build up your purchase list, you might be lucky to get better deals on bulk purchases on top of discounts. If possible, consolidate orders with your friends to demand a bulk discount as your order/purchase might be the sales person a week of sales target. When you have the bargaining power to negotiate salesman want you more.
Apparels
It’s always good to create a wish list to buy and wait for great discount or when you have a chance to travel to a destination where the items are cheaper. If you do have friends working as cabin crew or travelling around for work or leisure, you can ask them for a little favour as well. Never forget, purchased item above $600 from overseas are subjected to GST as well… so be wise.
Unfortunately sales in Singapore is always crappy! Boutiques can post “Up to 50%” but when you walk in, it’s either a rack or shelf of items on 50% only or items that looks like they are from the 80’s or purchase on purchase to get the entitled for the discount. kind of disappointed.
So online shopping can have significant savings, while you need to take certain level of risk on defects and quality. However, if it’s a known brand in Singapore, try them out in boutiques before making online purchase.
Household Necessities
At times when i see great discounts on certain household necessities i will do bulk purchase (of course in this case i already know the market price of a shampoo, toothpaste, etc.. come on i use them all the time), it’s like buying stock, buy them low. Ultimately, i will need to use them, so buying them now at low price is to my benefits. Of course, take note of the shelf life and expiry date if applicable.
Conclusion
I hope you do understand and appreciate Delayed Gratifications, always plan & source for you purchases especially for big ticket items. However, there must be a balance. If you are spending half a day to work out a savings of a dollar, that is wasting time and time is money. Always adopt 3 quotes to decide and never let emotion decide for you, your financial sense should take precedence.