Journeying away from our typical mortgage or loan tips and guidelines to speak about something that is equally as important and impactful when purchasing a home– delayed gratification.
Delayed Gratification is defined as the act of resisting an impulse to take an immediately available reward in the hope of obtaining a more-valued reward in the future. Simply put, it means to hold and wait (and plan) now for something that is better off in the future. In a world full of technological advances, we often opt for instant gratification as opposed to delayed gratification. Posting on social media to gain likes, having food delivered to your front door instead of cooking at home, choosing faster shipping to quick something quicker, indulging in junk food instead of a healthy meal, hitting snooze, spending money instead of saving, etc. – all for immediate bliss and fulfillment now instead of a better return in the future.
But how and why is it important to the home-buying process?
Think of it as investing vs. consuming – save for a rainy day as opposed to spending during the rainy days. Today may not look the same as it will 5-10 years down the road. Financial advisors will always recommend planning and saving today for a better return in the future. Delayed gratification is building wealth and homeownership is part of building wealth.
In the mortgage world, you can set yourself up for success and build your wealth by saving, investing, budgeting, and planning for your future. By creating a plan of action, you can prepare yourself for a downpayment to purchase your home, closing costs, paying off debt, retirement, etc. Ultimately delaying the act of indulging in instant rewards now can help start a journey toward a great rate of return in the future.
We dive deeper into the concept of delayed gratification as it applies to purchasing a home in the video below.
If you have additional questions about the homebuying process or would like to discuss your individual financial journey, feel free to give us a call at 402-991-5153. We’d love to answer your questions!