Marshmallows And Money

That’s an intriguing headline, don’t you think?, however, the two things are very much connected.

You may or may not be aware of a certain study carried out at Stanford University in 1972 involving children and marshmallows. Each child was offered a free marshmallow, or the lure of two marshmallows if they would delay eating the first one.

Of course, kids being kids, many just ate the first marshmallow right there and then, but some kids did delay gratification and waited, they were rewarded with a second marshmallow.

What has this got to do with you and how much money you make?

Every child taking part in that study was monitored for future progress. Several years later, it was found that the kids who had exercised the willpower of delayed gratification had also done a lot better at school and in their careers.

And Therein lies the rub.

Most people just spend what they earn and if they get a raise, they just raise their lifestyle to meet it. Many people adopt a kind of a live now pay later way of thinking. However, some people take a different approach. If you started out living and managing on 80%, or even 90% of your earnings and invested the rest, think of how much you could have accumulated over the years.

The late, great Stuart Wilde in his book “The Trick To Having Money Is Having Some” emphasises this point a lot. Rich people don’t spend everything they have, they live below their means. Poor people usually try to live above their means, as impressing others is sometimes more important than holding back some of their earnings for investments or business projects.

The real trick to having money is to always live on less than you earn. Most people will argue the point here that they’re struggling already and only just earn enough to live, this is a good point but your current earnings are a reflection of your current thinking and skillsets, both of these can be upgraded at anytime if you choose.

Your earnings reflect the market rate and how difficult it would be to replace you. I see arguments a lot on social media on how football players earn a fortune while nurses earn very little. I agree it’s a travesty but nurses are easier to replace than professional football players. I’m not saying it’s right, it just is.

Your current thinking has got you where you are today, in order to change you have to embody the mindset of a better paid person. And take steps to be that person right now.

How To Have Both Marshmallows And Money

In my book “Millionaire Mind Crush” I explain how to think like a millionaire and what it takes to both elevate your earnings and your lifestyle. We only live once, it’s best to get this right while you still have time left to enjoy it.

In simple terms.

1. Spend less than you earn. Adopt a savings habit of 10-20% of your net income every month.
2. Pay this money into an easy access high interest account. Here in the UK, some Internet easy access accounts are paying 4.6%. It’s not a lot, but it’s more than the 0.01% some bank accounts are currently paying. Get your money working for you.
3. Create an account for emergencies.
4. Create a business plan that fits in with your job. Start with a side hustle and work this part time until it competes with your full time income.
5. Sacrifice time and money for a better future. Make time now in order to create more free time and more money in the future. Remember, creating passive income can equal freedom for you and your family if you do it right.
6. Whatever you create, whatever you choose to sell, be it a product or service, you can always create more channels to sell it at. I go into great detail on this in Millionaire Mind Crush
7. Always put money by for emergencies. You never know what is going to happen next, life can be pretty unpredictable at times. Your job may come to an end, you may have an accident, be prepared, always put some money away.

I hope you can see the benefits of delayed gratification. Sacrifice a bit now so you can live better in the future. Somewhere out there is a business venture with your name on it.

Have a great day

Keith

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