Far too many people feel like investing is too complicated and give their money to financial advisers who sell them overly complex products that rarely benefit the person saving, but instead greatly enrich the adviser. Getty Images
Far too many people feel like investing is too complicated and give their money to financial advisers who sell them overly complex products that rarely benefit the person saving, but instead greatly enrich the adviser. Getty Images
Far too many people feel like investing is too complicated and give their money to financial advisers who sell them overly complex products that rarely benefit the person saving, but instead greatly enrich the adviser. Getty Images
Far too many people feel like investing is too complicated and give their money to financial advisers who sell them overly complex products that rarely benefit the person saving, but instead greatly e

Why delaying gratification is key to achieving your money goals


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Can marshmallows determine our fate? More specifically, can our response to them determine our academic, social and financial success? Back in the 1960s and 1970s, Walter Mischel and his colleagues at the psychology department of Stanford University designed an experiment to test the ability to delay gratification in small children aged 3 to 5.

He put a marshmallow in front of the child and told them if they were able to wait 15 minutes to eat it, they would get a second marshmallow. They left the room and discreetly observed the results of how long the children would wait. Some waited longer than others.

What was interesting was that when they tracked these children over time, the ones who were able to wait and delay gratification had better academic scores and got into better colleges. It seemed like they had discovered a key link in our inherent ability to put off immediate pleasure for larger rewards later and long-term outcomes.

Through the years, this test has been refined and more nuances have been teased out, with a developing understanding of how poverty, culture and other environmental factors play a role, but as someone with 16 years’ experience in the classroom, none of these results shock me.

Students who can delay playing and distraction are those who are most often successful. They can focus on work better and get more done. They tend to be kids who read for pleasure instead of being locked to the bright lights of a screen. Of course, they get better grades, go on to better colleges and build careers in difficult fields that require years of dedicated study.

As adults, we are often faced with a larger marshmallow test. Can we ignore the flashing advertisements of our consumerist world, ignore the instant dopamine rush of retail therapy, and instead save money and invest it regularly? Can we put off the immediate benefit of spending our paycheque on fun things and instead build real wealth that can get us freedom from the daily drudgery of jobs we hate?

For most people, the answer is complicated and lies somewhere on a spectrum. They spend more during some months and save more during others. Sadly, far too many feel like investing is too complicated and give their money to “financial advisers” who sell them overly complex products that rarely benefit the person saving, but instead greatly enrich the adviser.

This is why the Financial Independence Retire Early (FIRE) movement is still on the fringes of society and not mainstream, no matter what percentage of people say they want to quit their job or be free of financial worries.

First you have to overcome an adult marshmallow test to save money, then you have to invest wisely, which requires a bit of education, and then you have to have a fairly lucky streak of no emergencies for several years to build up the nest egg that is necessary to get off the hamster wheel and achieve independence. The deck seems stacked against us from the beginning, for a lot of reasons.

A key element in building your ability to defer gratification and meet your financial goals is the support of a strong community

When the choice is between brunch with friends and saving money for some abstract future, the easy choice is to do the fun thing. I’ve known people who lived in the UAE for years, making good salaries and who had nothing to show for it, financially speaking, when they left. They had failed the marshmallow test.

Even worse, some lived beyond their means and went into debt, creating difficult legal situations and giant financial holes they had to struggle to escape for years.

A key element in building your ability to defer gratification and meet your financial goals is the support of a strong community. Finding a tribe of people who celebrate your accomplishments and give you resources that guide you on the path to financial independence is critical because you won’t feel like a weirdo when you make different and sometimes difficult choices.

In the UAE, SimplyFi on Facebook is a fantastic and free community that provides such support. There are others around the world as well, like ChooseFi, Bogleheads and the Mr. Money Mustache community. These groups are filled with people at every stage of the journey, from getting out of debt, learning to save, learning to invest, and even those who have already achieved financial independence and quit their day jobs to pursue less lucrative but more rewarding lives.

The world may be set up to make you scarf down the marshmallow of immediate gratification, but you can fight back. You don’t even have to do it alone.

Schoolteacher Zach Holz (@HappiestTeach) documents his journey towards financial independence on his personal finance blog The Happiest Teacher

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

Recipe: Spirulina Coconut Brothie

Ingredients
1 tbsp Spirulina powder
1 banana
1 cup unsweetened coconut milk (full fat preferable)
1 tbsp fresh turmeric or turmeric powder
½ cup fresh spinach leaves
½ cup vegan broth
2 crushed ice cubes (optional)

Method
Blend all the ingredients together on high in a high-speed blender until smooth and creamy. 

COMPANY%20PROFILE%20
%3Cp%3EName%3A%20DarDoc%3Cbr%3EBased%3A%20Abu%20Dhabi%3Cbr%3EFounders%3A%20Samer%20Masri%2C%20Keswin%20Suresh%3Cbr%3ESector%3A%20HealthTech%3Cbr%3ETotal%20funding%3A%20%24800%2C000%3Cbr%3EInvestors%3A%20Flat6Labs%2C%20angel%20investors%20%2B%20Incubated%20by%20Hub71%2C%20Abu%20Dhabi's%20Department%20of%20Health%3Cbr%3ENumber%20of%20employees%3A%2010%3C%2Fp%3E%0A

THE SPECS

Engine: Four-cylinder 2.5-litre

Transmission: Seven-speed auto

Power: 165hp

Torque: 241Nm

Price: Dh99,900 to Dh134,000

On sale: now

UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press

KEY HIGHLIGHTS

Healthcare spending to double to $2.2 trillion rupees

Launched a 641billion-rupee federal health scheme

Allotted 200 billion rupees for the recapitalisation of state-run banks

Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets

ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

Blackpink World Tour [Born Pink] In Cinemas

Starring: Rose, Jisoo, Jennie, Lisa

Directors: Min Geun, Oh Yoon-Dong

Rating: 3/5

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%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Sav%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202021%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Purvi%20Munot%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%24750%2C000%20as%20of%20March%202023%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Angel%20investors%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

Teams in the EHL

White Bears, Al Ain Theebs, Dubai Mighty Camels, Abu Dhabi Storms, Abu Dhabi Scorpions and Vipers

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

Stuck in a job without a pay rise? Here's what to do

Chris Greaves, the managing director of Hays Gulf Region, says those without a pay rise for an extended period must start asking questions – both of themselves and their employer.

“First, are they happy with that or do they want more?” he says. “Job-seeking is a time-consuming, frustrating and long-winded affair so are they prepared to put themselves through that rigmarole? Before they consider that, they must ask their employer what is happening.”

Most employees bring up pay rise queries at their annual performance appraisal and find out what the company has in store for them from a career perspective.

Those with no formal appraisal system, Mr Greaves says, should ask HR or their line manager for an assessment.

“You want to find out how they value your contribution and where your job could go,” he says. “You’ve got to be brave enough to ask some questions and if you don’t like the answers then you have to develop a strategy or change jobs if you are prepared to go through the job-seeking process.”

For those that do reach the salary negotiation with their current employer, Mr Greaves says there is no point in asking for less than 5 per cent.

“However, this can only really have any chance of success if you can identify where you add value to the business (preferably you can put a monetary value on it), or you can point to a sustained contribution above the call of duty or to other achievements you think your employer will value.”