Practice delayed gratification; it’s a powerful tool

The power of compounding is endlessly emphasized, and even Reddit cofounder Alexis Ohanian attests to it, along with the benefits of delayed gratification.

“The miracle of compounding is real,” he told MarketWatch in an interview when speaking of the best financial advice he’s received. “It’s important to have a long-term focus when it comes to investing and saving. Generally speaking, the better you are at delaying gratification and the overall happiness of spending, the better off you’ll be with your long-term financial well-being.”

He added: “The marshmallow test [an experiment in the late 1960s to see how long children could delay gratification] was apparently pretty flawed and didn’t control for lower income kids who have different levels of food insecurity than wealthier kids, but I think there’s some fundamental value to being able to delay gratification, especially from a financial perspective.”

 

Source: Julian Finney [https://www.businessinsider.com]

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