Buying used cars for cash until you get to the point where you’re making so much money, you write a check for a new car, or living in a one-bathroom, tiny little home for seventeen years, saving and saving until someday you can live on a three-story home on a private ski lake and have the home of your dreams, that’s delayed gratification. As you’re delaying that personal instant satisfaction, you’re able to put money aside in a physical and an emotional bank and you allow them to accrue until it overtakes what you need. Applying that business, you might want to hire out and get all these people to do your marketing and you only got so much money in the bank, but yet you always leverage your bank account and hire out all these people. A lot of these types of mistakes end up crushing companies. Learn some tips on how delayed gratification and compounded work effort can help you until you can bring on the big boys.
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The Compound Interest Of Delayed Gratification
This one is awesome. How many people listening to this podcast love and understand compound interest? I remember back in the day we built an app, I think in 2013. It was awesome. It showed the difference between interests paid and interest saved by two twin brothers in 2012. A US bank helped us with this one. Anyway, back to this. This is a podcast on, believe it or not, delayed gratification. I sat through a lesson from a guy that teaches I don’t know how many people on a given month, given quarter, given year.
He reminded me something of the compound interest of delayed gratification. Let me explain. When it comes to personal delayed gratification, I remember my dad teaching me, “You buy used cars for cash until you get to the point where you’re making so much money, you write a check for a new car.” That’s delayed gratification, or like I did, you live in a one-bathroom, tiny little home for seventeen years, saving and saving until someday you can live on a three-story home on a private ski lake and have the home of your dreams.
That’s personal delayed gratification. What’s happening as you’re delaying that satisfaction, that personal instant gratification, you’re able to put money or tokens aside, in a bank, but physical bank and an emotional bank and you allow them to accrue until it overtakes what you need. Let’s talk about business. I see a couple of these mistakes in business and they ended up crushing companies, just crushing them. From a business standpoint, let’s say you want to hire out and get all these people to do your marketing. You want to get all these people to do this. You know you only got so much money in the bank, but yet you always leverage your bank account and hire out all these people. You just stay thin in the bank. Why not find a way to work two extra hours a day and figure out how to do it yourself, do it yourself, and save that money and then eventually hire it out to a true professional, not a stop gap professional or an intern or somebody you’re not even sure has the results of the fruit on the tree?
Let’s say there’re two huge key employees you want to hire and they’re just incredibly expensive, super expensive, maybe even making more than you to get them aboard. Been there, done that a couple times. How about instead hire a consultant on a six-month basis, a consultant, a consultant, no strings attached to no benefits, no this, no that, no extreme salary, and then you delay gratification. Finally, when you know exactly what you want out of the employee, you bring them on and explode financially because of the benefits that employee brings you. I’m just here to say people fall into two different camps.
As a person, you’re either personally a Visa or American Express. I want you to think about this. Are you a Visa where man on man, you can play right now? You can spend and spend. That interest is going to pile up and then you’re going to pay off that credit card for a long time. That is going to be painful and the compound interest that piles on you is going to suck, or you can delay gratification and you can only buy what you can only afford to buy and you can be an American Express, meaning you only charged something you can pay for at the end of the month.
There’s a reason I have three AmEx’s in my wallet. It’s because that’s how our family was raised. You only pay for what you can afford to pay off in 30 days, and the only reason we have AmEx’s at all is because a lot of these budget rental car doesn’t take a check. The reality is you delay and you delay and you save and you save. I’m talking financially, but I’m also talking just compound work effort, work ethic. You just compound it until you are so just rolling and then you bring on the big boys. Then you move into the big home. Then you get the big fancy car. Skip keeping up with the Joneses. Don’t worry about what other people think. Here’s the key. Nobody’s thinking of you anyway. Trust me, I don’t care who’s listening to this podcast. There’s probably not a soul walking the planet thinking about you right now. I want you to think about that. Everybody’s so worried about what they look like, how they dress.
I’m not talking about it in a business environment where you have to look good at work. I’m talking in general, nobody cares. Nobody’s thinking about you. You think about you, delay gratification, forget what other people you think are thinking about, and just do the right thing for your company, for your family’s sake, and delay gratification. Episode 351 for those that needed to be reminded of that one.