Sometimes, the difference between success and failure comes down to a single marshmallow. Really.

In the late 1960s, Stanford researcher Walter Mischel began a study that found success -- measured by health, wealth, and marriage happiness -- comes down to one marshmallow. Those subjects who were able to resist popping the fluffy treat into their mouths right away were better off financially and psychologically in the long term than their peers who didn't have the willpower to wait to chow down.

It turns out that throughout life we're faced with similar marshmallow tests that determine our well-being. Here's how the study worked, and how we can use the findings to become better at managing our money.

The Marshmallow-Money Connection

Mischel's study gave four-year-olds a simple choice: They could have one marshmallow immediately, or two if they could wait 15 minutes.

The results: One third opted for instant gratification. Another third tried to wait but succumbed to temptation along the way. And an elite third waited the full time.

Here's where it gets interesting.

The rewards of waiting: Decades later, the kids able to wait for the larger reward ended up more successful by essentially all measures: They were in happier marriages, had better health, earned higher incomes, and reported greater career satisfaction. Oh, and they also scored 210 points higher on the SAT.

The problems with poor impulse control: Meanwhile, the impulsive group wound up as feared: Unsuccessful marriages, worse health, reduced sense of fulfillment, and lower income. They were also more likely to watch -- or appear on -- The Jerry Springer Show. (OK, I made that last one up, but you know it's true.)

Don't Let Your Inner Four-Year Old Run Your Adult Life

The marshmallow lesson underscores the decisions that have made our lives what they are. There's power in waiting. Whether it's a stock, a hurtful comment, or an inappropriate relationship, controlling your impulses can save you money, spare you anguish, and give your inner four-year-old what it really wants: another marshmallow.

Even if you lack impulse control, there are ways to catch up to the kids who waited around for the greater reward of more marshmallows.

3 Steps to Fight Your Money Munchies

There's a little piece of each kind of four-year-old in us. When we trade too frequently, it's because we're tempted to cash in on a gain, or avoid a loss. Frequent traders doubt the second marshmallow. Successful investors don't.

Consider a recent study by Dalbar Research: In a given 20-year period, the S&P 500 returned 13% annually. By extension, a self-controlled four-year-old could have gotten that in an index fund. But the average investor -- the grown-up four-year-olds who meant well initially but couldn't hold out -- earned only 3.5% per year. Meanwhile, active traders -- the immediate marshmallow takers -- lost 3.3% yearly... in an up market!

Don't be a loser. (Peruse those numbers above again: 13% v. 3.5% v. negative 3.3%. Make a plan and stick to it. Here are three steps to fight your money munchies:

1. Write down why you're making the investment. Are you buying Whole Foods (WFM) because it's up more than 400% in the past decade and you expect more of the same, or because you dig the CEO's haircut? Inscribe it and you'll avert jumping in for a dumb reason in the first place.
2. Write down why you'd sell. And do it before you even buy. I made the mistake of not bailing out of financials like Bank of America (BAC) earlier in the financial crisis. Granted, the carnage was unprecedented, but it's easy to slide your scale as bad events unfold, making the clarity of your sell reasons is as important as their quality.
3. Act your age. You're a long-term investor holding for 10 years, right? Stop checking stocks daily like a nervous four-year-old. Can you count the number of times Netflix (NFLX) has been up or down more than 5% in a day? I could, but I won't: I'd rather ponder what CEO Reed Hastings' Facebook board membership means for the long term. Most investors -- not many, but most -- grossly mismatch their expectations with their intended holding periods.

Motley Fool analyst James Early owns no shares of companies mentioned in this article. He didn't disclose whether or not he waited to eat the marshmallow. The Motley Fool owns shares of Whole Foods and Bank of America, as well as having a short position on Bank of America. Motley Fool newsletter services have recommended buying shares of Netflix and Whole Foods as well as buying puts on Netflix.

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Great selection, low prices, and tolerable shopping conditions are Wal-Mart's (WMT) winning formula. Finally, the company is starting to see it that way, too.

A decade ago, Wal-Mart's stock was overpriced. The company's rich price tag became its penance as it spent the better part of 10 years trying to grow into its valuation of yore. So it made improvements in margins, earnings, and operational returns. Still, the share price barely budged.

Then Wal-Mart did something really stupid: It tried to copy Target (TGT).

If Target Jumped Off a Cliff...

The company pulled thousands of items off its shelves and went trendy and upscale with its threads. And it did this just as the U.S. was entering a recession. Bad move.

A few years and one new CEO later, Wal-Mart began to realize what you knew all along: If people wanted a shopping experience like Target's, they would just go to Target.

Fake It Till You Don't Make It

Learning to embrace your gritty self isn't easy, but Wal-Mart now realizes that it's not just another pretty face in the neighborhood.

You know Wal-Mart. The smell. The crowds. The lines. The world's largest retailer. The nation's largest private employer. You could live in one, and while you might end up looking like a sun-starved creature from an H. G. Wells novel, at least you'd have access to ammo, Corn Flakes, and underwear.

CEO Mike Duke is recluttering shelves and going back to basics. It's a strategy that should start to reverse the company's two-year trend of declining U.S. same-store sales. This alone should boost the stock price. But I see even more reasons that an investment in Wal-Mart right now will pay off down the road:

1. Dividends: Wal-Mart is now a dividend stock yielding nearly 3%, and its payout is up double digits over the past 12 months.

2. International expansion (and online sales): Wal-Mart may have missed in Germany and South Korea, but it's the bomb elsewhere. It's the best operator in the sophisticated U.S. retail market, so it brings serious intellectual reserves when it expands overseas.

3. Valuation: This may be a bit of a catch-all, but it's my favorite single reason for feeling good about Wal-Mart's future. Baking conservative-to-mid-range assumptions into my discounted cash flow model yields a valuation of $65 per share -- high enough to offer a 20% gain to investors who buy today.

What Could Keep Wal-Mart in the Markdown Bin?

The risk is that I'm wrong. Adding more items might not bring the throngs of humanity back into the stores (although they appear to have returned to the one in my neighborhood), and Wal-Mart could get nipped from dollar stores on the low end and Amazon.com (AMZN) on the higher end.

But over the decades, Wal-Mart has demonstrated that it's a superior retail concept. Putting entire towns out of business isn't easy, and whatever you think that says about Wal-Mart, it says a lot less about the towns -- or at least the viability of their retail offerings. I'm not being harsh, just realistic: Business evolves like everything else, so put your money with a winner.

The Bottom Line

Think of Wal-Mart as a bounce-passer and lay-up artist -- the kind of player that puts points in your portfolio while letting the highfliers grab the spotlight. The game is on, investors, and the low price on Wal-Mart's stock won't be around for long.

James Early is a Motley Fool analyst. The Motley Fool owns shares of Wal-Mart and a box of Corn Flakes, but neither ammo nor underwear.

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