Kids Marshmallow Test
What do marshmallows have to do with investing? Check out this set of video links and one sees the connection, particularly as it relates to The Golden Rule of Investing.
The first video simply demonstrates the test – without any conclusions. Children are placed in a room with one marshmallow in front of them. If they can refrain from eating the marshmallow until the researcher returns, they will be given a second marshmallow.
While the experiment is interesting to watch, it does not explain why this research was conducted. To see the followup analysis, watch this video.
This link takes readers to further analysis and reader comments. The results are amazing. Interested readers will find other links to the Marshmallow Test if they Google the test.
Is there a link between self-discipline and investing? Absolutely. If one stays focused and develops a disciplined practice of saving, the retirement plan is well on its way to success. However, if one spends money now on unnecessary items, then living in retirement is going to be a struggle.