Posts Tagged ‘front’

Could the ability to restrain yourself from eating one marshmallow make a difference between struggling through life and the ability to retire wealthy and early? Yes it can, according to a study done in the the 1960′s by Stanford University psychology researcher, Michael Mischel. The study tested 4-year old children’s ability to delay gratification. The researcher then placed a marshmallow in front of the child and gave him/her two options. The child could eat the marshmallow, or he/she could wait until the doctor came back from an errand and the child would receive two marshmallows. Only 1/3 of the children were able to wait until the researcher returned. I read the story in the book Influencer: The power to Change Anything (a book I would highly recommend by the way), but you can also find more details on the story here.

I know, it doesn’t really seem like a big deal right. Well, they followed these kids into their adulthood and it turned out that the children who were able to delay gratification and wait for the second marshmallow were more successful, had high paying jobs, and tended to be more happy people than the ones who choose to eat the marshmallow. Think about it. The ability to delay gratification means you can save and invest when others are spending money on various things they don’t really need, you can control what you eat, make yourself exercise, push yourself through school when others are partying. This one small behavior has the ability to completely change your life. I know, it is much harder than I make it sound. Luckily, according to the book, Influencer, this behavior can be learned. Since the two books have a lot of similar ideas, I would also encourage you to read Made to Stick.

However, in some cases it really is simple. Most people give up on investing and even saving because they feel it is too difficult. But put in the context of the marshmallow story, finance and investing is really not eating one marshmallow so you can have two. You don’t spend your money, put it in some type of investment, and then it becomes more. The behavior that has to change is the “not spending” part. But, as i mentioned in an earlier post, it gets much easier once you get used to it.

Related articles

• one marshmallow, or two? – the marshmallow study, conducted in the 1960’s by stanford university psychology researcher michael mischel,. demonstrated how important self-discipline is to lifelong success. he started his longitudinal study by offering a group of …
• The Marshmellow Test – [Editor’s note: This is an op-ed by Perry Wu, chief executive of BitGravity, a content distribution company, a long-time entrepreneur and former venture capitalist.] I was up in the mountains this past weekend, watching the kids run …

This is the question that I find myself thinking about more than anything else. We all want to follow our dreams and do what makes us happy, but there is also the need for money. Most people want to own a house, to retire on a beach, to travel the world, to focus on the one thing that they really love. However, it takes money to do most of these things.

The problem is that we spend most of our time chasing after money, and there is very little left over for our dreams. Not to mention that most of us end up spending the money we make on the things we don’t really need/want just to feel better. Most people seem to end up doing something they don’t really like for a higher pay. We stress about our careers that don’t really matter, and most importantly we lose track of our dreams. Most of us as children wanted to be something, whether a policeman, fireman, tractor driver, ninja, or star player; we all had dreams. Yet, most people give them up to pay the bills.

So what’s the answer? Well, I think it is different for every person. People who are living their dreams generally seem to be happier to me. They have less worries and always seem to be in the moment. But, that lifestyle in many cases may does not have much security. I think it is balance. Spend as much time as you can living, while also making sure to save for the future.

Most people seem to have difficulties with their finances, and there are a lot of books put out there to help. However, I really don’t think it is that difficult. I think that financial stability can be reached with just a few steps.

1. Save “at least”10% of every paycheck ( I would encourage you pay off any debt before doing this)
2. Don’t use credit. You want to make interest, not pay it.
3. Look at your expenses and see what you can remove (it will be difficult at first, but gets much easier)
4. Learn to have fun without spending money. Especially for those who shop as a hobby
5. Invest your savings to earn money. Whether it is stocks, bonds, savings, or buying and selling, it is important for your money to grow
6. Continue your education. The best investment you can make is on yourself. Learn finances, investing, take classes to move into a better position, finish that degree. The more you learn, the easier it is to make money.

It takes a little work at first to change your habits, but once you do it for a few months it becomes much easier. you will wonder how you spent so much money.

Related links

• massive change and the city – by david zaks and chad monfreda in conjunction with the massive change exhibit that recently ended in chicago, the museum of contemporary art and the city of chicago department of the environment organized a one-day symposium that …
• Easily Distracted » Blog Archive » Could College Be Cheaper? – Could College Be Cheaper? Like Fontana Labs, I’ve long fretted that some day, all at once, in a tipping point reaction, both employers and families are going to decide in two different directions that expensive college degrees no longer …
• SWE Announcements » Blog Archive » Opportunities – Society of Women Engineers at Stanford. Front Page Events Member Resources Corporate Relations About Us. « Book Swap Social – January 8 · SWE-SCV $1000 Scholarship ». Opportunities. Hey SWE! I’ve decided to post all the summer/other …