delayed gratification
The ability to resist an immediate reward in favour of a larger future reward.
Example
“Delayed gratification was the skill that separated consistent savers from spenders.”
Memory Tip
DELAYED — you wait. The future reward is worth more than the present impulse.
Why It Matters
Delayed gratification is fundamental to building wealth and achieving financial goals because it allows you to prioritize long-term security over temporary pleasures. People who master this skill tend to save more, invest wisely, and avoid debt, ultimately creating a more stable financial future.
Common Misconception
Many people think delayed gratification means never enjoying money or living a completely austere lifestyle, but it actually means making intentional choices about when and how to spend. You can still enjoy life while being strategic about balancing immediate wants with future needs.
In Practice
A 25-year-old earning 50000 dollars annually could spend their annual 3000 dollar bonus on a vacation immediately, or invest it in a retirement account earning 7 percent annually, which would grow to approximately 28500 dollars by age 65. This single choice to delay the gratification of a vacation demonstrates how small acts of delayed gratification compound into substantial wealth over decades.
Etymology
From Latin 'dilatus' meaning postponed, plus Latin 'gratificari' meaning to please later.
Common Misspellings
Build a budget and track your spending
Related Terms
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See Also
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