The Whole Delayed Gratification Thing

[wish-ga]

sorry what was that I couldn't hear you ... I had a marshmallow in each ear.

Seriously though I haven't gotten my 2 marshmallows yet. I am at the stage I am trying to get a bit set up so am still at the delaying stage.

When I am at the stage where there is a bit of passive income I can live off I hope to use a bit for me and also to fund a scholarship for an indigenous person to get a degree to become a teacher.

In the meantime; <wish-ga hums and smiles>

 

[quoll]

G'day all

Just throwing some ideas around and they sort of fit in with this thread.

The missus and me are still working on the house, 5 years since it was built. I was thinking of selling an IP to get $50k and finish the the thing off but by selling the IP we would be missing out on the ~$30k of growth each year. So we thought why not borrow the extra cash and in the long run we will be better off.

So then we start thinking what would we prefer to do with cash?
$10k will buy the pergola or the driveway (it's big) or a holiday.

With 3 kids aged 7,11,12 we keep thinking of the life education, a holiday would be good for them see different bits of the world / oz.

I guess what I'm getting at is if you have a wad of cash what can you do with it, what benefit will it give you both now and in the future.

Thinking of a swimming pool, it's a lot of cash now $30k but the benefits are swimming which is good for you, enjoyment, we will know where the kids are, may end up with them and their friends at our house more often which is good (think teenagers), more work keeping it clean, might miss out on an IP due to serviceability.

Well, I'll keep thinking and will come to a decission one day.
Cheers
quoll

 

[WillG]

Hi Quoll,

I don't have teenagers and have many years before I will but I don't think kids need lots of expensive do-dads, pools etc. They need your time.

If you can free up time with your 'wad of cash' or somehow use it to help you retire sooner rather than later, you will be ahead.

I guess this fits in with 'delayed gratification'.

To answer your question.
Q: If I had a wad of cash ~$50k, what would I do with it ?
A: I would leave it in an offset account against one of my IP's. It would generate extra income and give me the option of working part time. The cash would also give me the opportunity to purchase bargain IP's when they arise.

 

[keithj]

I don't have teenagers and have many years before I will but I don't think kids need lots of expensive do-dads, pools etc. They need your time.

Absolutely. I've followed this thread with interest. My kids are 4 & 6 - I went part time shortly after the 2nd arrived & stopped completely a couple of years ago. The hard work over the first 15yrs & serious amounts of delayed gratification is proving to be well worth it.

 

[quoll]

I don't have teenagers and have many years before I will but I don't think kids need lots of expensive do-dads, pools etc. They need your time.

If you can free up time with your 'wad of cash' or somehow use it to help you retire sooner rather than later, you will be ahead.

G'day WillG

I agree, your time and attention is the most important gift you can give your children. So what price can you put on having teenagers hang around your house intsead of hanging at the park / mall / somewhere else.

The $50k isn't going to make a lot of difference too when I retire, that's still 5 years away, my current job is pretty easy I'm home by 5pm most days so get time with the wife and kids, don't work weekends, get carers leave, unlimited sick leave, and 4 weeks of annual leave.

So I guess the position I'm in the and way I'm thinking is that if I delay the gratification for too much longer I won't have kids to play with I'll have young adults with their friends so the activities are different.

It gets hard to compare and weigh up the benefits of things when you can't put a $ value on them, how do you compare the benefits of having a house that is comfortable for yourself, your kids and their friends to hang in.

It's finding that balance that works for each family so the retirement is on track, the day to day living is comfortable, you get some toys but not all the toys, you have some comforts but not all the comforts, if you get everything that you want now, you will find more stuff to want next.

cheers
quoll

 

[Brizzy Boy]

Hey Quoll,
You have won my wife over, she agrees completely with the last paragraph of your last post, "some toys not all of the toys etc etc, now I have a real headache here!!! LOL (She said thats licking the mashmellow!!!)
Cheers
John

 

[quoll]

Brizzy Boy

Here's a good way around that.

Example a new push bike.
You work out what you want, what you would like and what you can afford. Have a look at stuff that is a couple of models above that, convince the wife you would like the really really good one, then settle for the one that has the features you want at the price you are happy with, in a couple of years bikes will have changed a bit more and you will have found a better one, so you don't get the better one cause that is the toy you have to wait for.

The other angle is specialisation, why can't I have a dual suspension bike and a ridged frame bike, cause one is the have now toy and the other is the wait for toy.

It's the same with everytihing there is always something better or more suited to whay you want to do but you have to be strong and get something that is good enough to do what you want at a price you are willing to pay.

I enjoy having things that I need to save up for, it gives me a short to medium goal that is attainable.

Have fun with the wife.
Cheers
quoll

PS same applies to the wifes toys, things like, wardrobe doors, sofa, curtains, shoes, clothes, new cutlery, palms for garden, etc.

 

[kissfan]

Brizzy Boy

Here's a good way around that.

Example a new push bike.
You work out what you want, what you would like and what you can afford. Have a look at stuff that is a couple of models above that, convince the wife you would like the really really good one, then settle for the one that has the features you want at the price you are happy with, in a couple of years bikes will have changed a bit more and you will have found a better one, so you don't get the better one cause that is the toy you have to wait for.

The other angle is specialisation, why can't I have a dual suspension bike and a ridged frame bike, cause one is the have now toy and the other is the wait for toy.

Hi Quoll

Does that mean I can ask for a Harley Davidson Heritage Softail even though I really want a Fatboy .

Another one of those delayed gratification things that I will probably miss out on.

Regards
Marty

 

[quoll]

kissfan

you can ask for what ever you want!

I keep telling the wife I'm gunna buy a porche boxster / chrysler crossfire / replica cobra, currently driving an 89 Camry.

Maybe one day.

Quoll

 

[Ecogirl]

I am planning on teaching my elder sister (and the rest of the family) about delayed gratification. Picture this:
My sister is 5 yrs older than me and has recently come back from India and is really sick - so sick that she's incapable of working. She has no savings and can't work so she can't afford rent or to eat. She spends all her $$ on going overseas and living the high life.

Since I have the savings and investing ethic I am paying to move her (including furniture and cats) from Sydney to my house in Mky so I can care for her until she gets back on her feet. When she's feeling better I will help her to work out a payment plan to pay me for the cost of relocation.

Thank god I plan for my future and don't have to rely on my family to bail me out if something unexpected arises and I can't work. I'm the only one in the family who has savings hence me footing the bills at this time.

I think my whole family has learnt something from this, hopefully other ppl can too.

Ecogirl

 

[caramellokoala]

I am over this delayed gratification!! It frustrates me no end!!
My concern is, what is the alternative, welfare??

I am not mean spirited. I give 10% of my income because hopefully it makes a difference and because I have a need to do this.

I don't have a poverty mentality but at the same time I am not wasteful. From an early age I have not wasted money on non essential items. We paid off our first house in a few short years as well as raising four children.
We sold our PPOR (bad mistake) and we now have a few investment properties. After renting for at least ten years I want to buy another PPOR and simply can't afford it.

I am not convinced Steve Navra's model works 100% in the real world!!
For me, it's not even about sending my kids to private school or going to Hayman Island for a weekend away. It's about having my own home.

Delayed gratification, I'm over it!!

CK

 

[kissfan]

I am over this delayed gratification!! It frustrates me no end!!
My concern is, what is the alternative, welfare??


CK

Hi CK

Thats the point! Delayed gratification now so you dont have to go on welfare. I agree that "waiting" for things can be frustrating but as you have already said, it beats the pension/welfare.

Regards
Marty

 

[agent 86]

I am planning on teaching my elder sister (and the rest of the family) about delayed gratification. Picture this:
My sister is 5 yrs older than me and has recently come back from India and is really sick - so sick that she's incapable of working. She has no savings and can't work so she can't afford rent or to eat. She spends all her $$ on going overseas and living the high life.

Since I have the savings and investing ethic I am paying to move her (including furniture and cats) from Sydney to my house in Mky so I can care for her until she gets back on her feet. When she's feeling better I will help her to work out a payment plan to pay me for the cost of relocation.

Thank god I plan for my future and don't have to rely on my family to bail me out if something unexpected arises and I can't work. I'm the only one in the family who has savings hence me footing the bills at this time.

I think my whole family has learnt something from this, hopefully other ppl can too.

Ecogirl

Ecogirl,

Great that you can help.
Hope all goes to plan, but brace for fallout.
Maybe she'll follow your example.

best wishes,

A86

 

[quiggles]

I think my whole family has learnt something from this, hopefully other ppl can too.

I hope they haven't learned "Well I can stuff it all up 'coz Ecogirl has lotsa dough and will come to my rescue (again)".



Seen it too many times. Best wishes, and hopes.

 

[ToeEdge]

Hi all.

Just trying to find out how others feel about delayed gratification, specifically, at what what point do you say enoughs enough and start to enjoy the fruits of your labour.

How much do we have to sacrifice?

Would be interested in what others have to say on this.

Regards
Marty

In hindsight if I had delayed some past gratification (cars, holidays,cheaper PPOR etc) perhaps I would be in a better situation financially now. But then I sit down and look at my photo albums, videos or during long reminiscing chats over a beer and it all suddenly becomes worthwhile.
I like Steve Navra's philosophy "each day is precious; so live for the day, whilst planning for the future."
I reckon I am 30k worse off due to ski trips to Canada with my two girls (and the wife sometimes ) over the past 4-5yrs. To me the experience is worth ten times the money spent.
Besides, the past gratification provides further incentive to plan for the future to provide for further gratification. The more you live, the more you want out of life, I feel.

Ooh I love these philosophical threads.

Sean.

 

[geoffw]

I would have been hugely better off financially if I had not taken a three month trip to go backpacking nearly 20 years ago- and then cashed in my superannuation whenm changing jobs to go overseas again.

But then I would not have met, or been married to, the lovely Mexican lady I met on the first trip, who I went to see again on the second trip.

 

[lissie]

About 5 years ago my brother was 33 I was 38 - he was married I was in stable relationship. We compared notes over a few days at the beach . We are both well paid professionals who have travelled and earned a lot over the years. He had super and shares in Oz and NZ and lived in Eire. I had a few $1,000 and lived in NZ. He could have retired by 40 by basically paying off the existing mortgage and moving back to NZ with euros. It got me thinking as to how I could do it in a similar - I couldnt - which is bad when you have a bad case of sibling rivalery going on Eventually I got to investing in IP's now we should be able to retire in 5 years. He on the other hand is looking at reitrement in his 50's - what happened - 2 small children basically. Suddenly you cant just move to another country and live on the beach - kids apparnetly requirement schooling and clothes and tv's etc. Now its not simple to move countries - if they say in Eire they will get a good free education thru uni level - they wont in NZ - so you have to factor in private schools and uni fees here !

So yes if you choose to have kids you better start planning your retirement sooner rather than later - but for the rest of us - live life and then decide how to fund the rest of it - in my 20's it never occurred to me that I needed to do other than rent - I never lived in any one country or town for more than 2 years anyway! Its not the doodahs that will get you - its basically not spending most of your income - the consumer goods are a minor part of that - dependents and ex-partners who you support are what will keep you poor !

 

[Aceyducey]

In hindsight, if I'd bought all the correct stocks at the right time, and sold them at the right time, got into property and out of property at the right time, and invested in the right start-up businesses, I'd be the richest person on the planet right now.

Now if I can only develop foresight....


Delayed gratification is about having a whole-of-life perspective.

If over your entire life you'll be a better/happier person by delaying gratification today, it's worth it.

If not, then don't delay!

Cheers,

Aceyducey

 

[Jacque]

In hindsight, if I'd bought all the correct stocks at the right time, and sold them at the right time, got into property and out of property at the right time, and invested in the right start-up businesses, I'd be the richest person on the planet right now.

Now if I can only develop foresight....


Delayed gratification is about having a whole-of-life perspective.

If over your entire life you'll be a better/happier person by delaying gratification today, it's worth it.

If not, then don't delay!

Cheers,

Aceyducey

Well said Acey
Agree wholeheartedly!

 

[wish-ga]

I am over this delayed gratification!! It frustrates me no end!!

I think someone needs a hug <squish>