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Yakk · 11-01-2006, 07:07 PM

Adults have a much longer delayed gratification period.

While for a child, asking them to wait 15 minutes for a 100% return is an iffy thing -- for an adult, investing at 4% real return is an 18 year wait for a 100% return.

1$ now, or 2$ in 20 years? (3.5% return on delayed gratification)
1$ now, or 2$ in 15 years? (4.7% return on delayed gratification)
1$ now, or 2$ in 10 years? (7% return on delayed gratification)
1$ now, or 2$ in 5 years? (15% return on delayed gratification)
1$ now, or 2$ in 2 years? (41% return on delayed gratification)
1$ now, or 2$ in 1 year? (100% return on delayed gratification)

Going into debt is the above gamble, backwards. At 20% interest (credit card rates)
1$ now or 6$ in 10 years
1$ now or 2$ in 4 years

(yes, less inflation)

11-01-2006, 07:07 PM	#15 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	Adults have a much longer delayed gratification period. While for a child, asking them to wait 15 minutes for a 100% return is an iffy thing -- for an adult, investing at 4% real return is an 18 year wait for a 100% return. 1$ now, or 2$ in 20 years? (3.5% return on delayed gratification) 1$ now, or 2$ in 15 years? (4.7% return on delayed gratification) 1$ now, or 2$ in 10 years? (7% return on delayed gratification) 1$ now, or 2$ in 5 years? (15% return on delayed gratification) 1$ now, or 2$ in 2 years? (41% return on delayed gratification) 1$ now, or 2$ in 1 year? (100% return on delayed gratification) Going into debt is the above gamble, backwards. At 20% interest (credit card rates) 1$ now or 6$ in 10 years 1$ now or 2$ in 4 years (yes, less inflation) __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.