No Regrets
The ability to delay gratification is one of the hallmarks of a wise money manager. That's what it takes to build savings instead of indulging in all of the "must-have" items we see advertised. However, an interesting piece on Yahoo! Finance recently focused on the regret of putting off fun purchases too long. Columbia University researcher Ran Kivetz says if you constantly put off pleasure for the sake of being practical you may be suffering from "hyperopia." Studies he's conducted show that initially such people tend to feel good about their practical ways. However, over time many often regret not enjoying their money more.
Matt's View
My guess is that there are more myopic ("buy now") people than hyperopic ("buy later") people in the world. But if you tend to put off all fun purchases, learning to enjoy some of your money doesn't require going on a wild spending spree. And you can still indulge your hyperopic side by planning and saving for a fun purchase.
Along these lines, my wife and I have a goal of going on two overnight trips this year without our kids. We haven't been away on our own since before our three-year-old was born. So, we're planning for the trips (arranging to trade 24 hours of child care with two families) and saving for them (setting aside vacation money each month). What about you? Is there something fun you've been putting off doing or buying? Maybe this is the year to plan for it, save for it, and actually go for it.
This article filed in: Happiness
Managing Money by The Book
- "To keep me from becoming conceited because of these surpassingly great revelations, there was given me a thorn in my flesh, a messenger of Satan, to torment me. Three times I pleaded with the Lord to take it away from me. But he said to me, 'My grace is sufficient for you, for my power is made perfect in weakness.'" - 2 Corinthians 12:7-9
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