Me, My (future) Self and Delay Discounting

There is an important bias in how we perceive value in relation to time.

When we discuss time, we usually think of doing something by a certain deadline, a project being on track or slipping, a friend being on time or late and so on.

In product management, time is obviously a critical factor when it comes to delivering value. But time also defines the value itself. It’s like a quality, dimension or aspect if you will. It gives context.

In life, how we perceive value is also influenced by time.

An example of this is an important bias in how we perceive value in relation to time.

Delay Discounting

We have a tendency to prefer an immediate reward over the future one, even if it is greater in value. We seem wired to respond more strongly to immediate rewards (or consequences) than to delayed ones. 

Delay discounting is a theory about this, stating that percieved value decreases as delays in receiving the reward increase. A part of this phenomenon is hyperbolic discounting, which describes decrease not consistent across time. 

Why Delay/Hyperbolic Discounting Is Bad for Us

Hyperbolic discounting can lead to poor decision-making due to a preference for short-term gratification and be damaging to different aspects of our lives.

For example, to our long-term health as we choose instant gratification of cigarettes or unhealthy food, or to our financial wellbeing as we choose instant gratification of impulse shopping.

This bias can have a broader impact as well, such as climate change inaction: immediate benefits or conveniences are prioritized, while long-term consequences can be dire.

Fighting this Bias (You and Your Future Self)

There are different ways to combat delay discounting and make choices that benefit our future selves. One effective method is to imagine your future self and what they might look like based on the decisions you make today.

By envisioning your future self, you create a personal connection to the person you will become. This connection can help you focus on your long-term goals and avoid falling for short-term rewards and instant gratification.

For example, if you're considering junk food instead of sticking to your healthy eating plan, try picturing your future self at a healthy weight. This is proven to help make positive choices. Note that it’s not about imagining an idealized version of yourself, but about understanding the consequences of our current choices and how they may impact us. (Personally, imagining both a negative and positive outcome has been helpful.)

You can try this for saving money, getting into the habit of exercising, and stopping procrastination.

Do you have challenges with your long-term goals? How do you deal with them?
Maybe it could be the delay discounting bias.


Milos