Podcast Summary
Understanding Delayed Gratification for Property Success: Rob and Rob discussed the importance of delayed gratification in property investment and the government's efforts to increase homeownership through incentives and high-risk mortgages, leading to rising house prices.
This week on the property podcast, Rob and Rob discussed the concepts of Lamborghinis, ego, billionaires, and delayed gratification. While there won't be any specific tactics about property investment discussed, understanding the idea of delayed gratification is essential for success in the property market. In the news, Boris Johnson's plans for a 95% mortgage scheme, dubbed "Generation Buy," aim to make homeownership more accessible by incentivizing lenders to offer high-risk mortgages. At the same time, house prices have seen a significant increase of 7.3% annually, according to Halifax, the steepest increase since June 2016. These developments highlight the government's focus on addressing the housing crisis by encouraging homeownership and the ongoing demand for property despite the pandemic.
Growth in Property Market: Nationwide and Halifax Report Increases: Understanding the concept of delayed gratification is crucial for making informed financial decisions and long-term investments, as demonstrated by the current growth in the property market.
The property market is experiencing significant growth, with both Nationwide and Halifax reporting increases of 5% and 7% respectively in their September figures. This market strength is not limited to a specific region, making it an intriguing development. Delayed gratification, a concept from a classic psychological experiment, is essential to investing, as it involves saving money today for a better future. This concept is not exclusive to children; everyone faces the challenge of resisting immediate gratification. Two real-life stories illustrate the potential consequences of not delaying gratification: a couple who spent their money on luxuries rather than saving, giving the impression of wealth but ultimately living beyond their means. By understanding the importance of delayed gratification, we can make more informed decisions about our finances and long-term investments.
The Power of Delayed Gratification: Small sacrifices today can lead to significant rewards tomorrow. Delayed gratification is a crucial skill for achieving long-term financial stability and independence.
The ability to delay gratification plays a significant role in financial success. The first story illustrates the consequences of living beyond means and being unable to save for the future. This couple, despite working hard, spent all their money on immediate wants and needs, leaving them in a precarious financial situation. In contrast, the second story highlights the power of patience and long-term planning. The man in this story started his business eight years ago and, through hard work and delayed gratification, built up a property portfolio that now covers his living expenses. The difference between these two individuals lies in their approach to life. The first couple struggled to resist the urge for instant gratification, while the second man was able to wait and save for the future. The former's story may seem extreme, but many people operate in a similar way, prioritizing the present over the future. It's important to remember that small sacrifices today can lead to significant rewards tomorrow. Delayed gratification may not be easy, but it's a crucial skill for achieving long-term financial stability and independence.
The influence of social media on our egos and financial decisions: Social media can trigger our egos, leading to impulsive decisions and a focus on instant gratification over long-term savings. Building self-confidence and not caring too much about others' opinions can help improve ability to delay gratification and make better financial decisions.
The constant exposure to idealized versions of others' lives on social media can trigger our egos, leading us to make impulsive decisions and compete for status and importance. Our egos, which are a natural part of us, can persuade us to spend money we don't have and prioritize instant gratification over long-term savings. This desire to fit in and keep up with others can be damaging, especially in the early stages of delaying gratification when success may not be immediately visible. To improve our ability to delay gratification and resist the influence of our egos, it's essential to focus on building self-confidence and not caring too much about what others think. This is easier said than done, but recognizing the role of our egos and being aware of their influence can be a crucial first step towards making better financial decisions and achieving long-term goals.
Quiet achievers focus on goals and work: Success and contentment come from focusing on personal goals and work, rather than seeking external validation through showing off wealth or possessions
Focusing on one's goals and work, rather than seeking external validation through showing off wealth or possessions, can lead to greater success and contentment. The examples of successful individuals like Warren Buffett, Bill Gates, and Mark Zuckerberg illustrate this point. People who constantly show off on social media, on the other hand, may be insecure or lacking self-confidence, seeking validation from others. It's the quiet achievers who focus on their missions and delay gratification who often get the best results. Being aware of these tendencies and recognizing when the ego is influencing decisions can help individuals make more mindful choices. It's not an easy feat, but being aware is the first step towards making better choices and delaying gratification.
Understanding the impact of ego on social signaling: Recognizing and challenging our ego's influence can lead to more intentional choices and greater self-awareness.
Our actions, no matter how small, serve as social signals to others, often driven by our ego. Being aware of this is the first step to understanding and controlling the impact of our ego on our daily lives. This theory, known as social signaling, suggests that everything we do is ultimately to convey something to others, usually about our status. By catching ourselves in the moment and questioning why we feel the need to share certain information, we can begin to recognize and challenge our ego's influence. Even if we believe ourselves to be ego-free, we all have an ego at work. And, we can also change who we're trying to impress. For example, in some communities, having the cheapest or oldest car can be a status symbol. Being aware of our ego and its social signaling tendencies can help us make more intentional choices and lead to greater self-awareness.
Considering Long-Term Goals and Benefits: Instead of solely focusing on impressing others or seeking instant gratification, consider building wealth and assets for long-term freedom and financial security.
It's essential to consider who we're trying to impress and why, as the people we admire and envy often influence our own aspirations. However, it's crucial to question whether the lifestyles of those we look up to will still be desirable to us in the future. Instead of focusing solely on impressing others, we should consider building wealth and assets for long-term freedom and financial security. It's natural to have an ego and desire instant gratification, but developing a clear vision of our future goals and the benefits they will bring can help us make better financial decisions. By focusing on the long-term benefits, we can overcome the temptation of instant gratification and work towards a more secure and fulfilling future. Don't feel discouraged if this seems challenging; instead, try to develop a strong mental image of what your future will look like when you've achieved your goals. This competing force can help you make better financial decisions and resist the temptation of instant gratification. Overall, the conversation emphasized the importance of considering our long-term goals and the benefits they will bring, rather than solely focusing on impressing others or seeking instant gratification.
Delaying Gratification for Long-Term Financial Success: To achieve long-term financial success, make choices that benefit your future over instant gratification. Have a clear vision of your future goals and find motivation in them, even when faced with social pressure or temptation.
Delaying gratification is a crucial skill for achieving long-term financial success. It's the ability to make choices that benefit you in the future over instant gratification. This can be challenging, especially when faced with social pressure or temptation. To help, it's essential to have a clear and compelling vision of your future and what you hope to achieve. This vision should be more compelling than any short-term desires. Dyson Development, a listener success story, is an excellent example of this principle in action. After retiring and building a buy-to-let portfolio, he found new purpose and motivation by refocusing his efforts and transforming old properties. His success likely goes unnoticed by his friends, but his satisfaction and continued progress are invaluable. As Abraham Lincoln wisely put it, "Discipline is choosing between what you want now and what you want most."
The importance of having a clear vision: Having a clear vision makes it easier to make disciplined choices that align with that vision, leading to success.
Having a compelling future vision makes it easier to make disciplined choices that align with that vision. This idea was discussed in detail during the podcast, emphasizing the importance of having a clear vision for investing, business ownership, or any other personal goal. Once the vision is compelling enough, it becomes the priority, making it easier to resist short-term desires. This principle is a common trait among successful individuals and is a simple yet powerful concept to keep in mind. So, in essence, the podcast discussed the importance of having a clear vision and the discipline required to consistently make choices that align with that vision.
