Eight Reasons Why People Splurge
It’s that time of year again ... fall, and soon to follow, Christmas. Money is tight, and shopping for the holidays can be a real challenge for people. How can we be more financially responsible when we hit the stores this year? MSN Money News recently had an article about eight reasons people splurge their shopping decisions. Here they are:
One, shopping while hungry. Something kicks off in your brain and says, “Buy that, buy that!” The solution is to have several Big Macs, bags of chips and chocolate shakes in your vehicle when you shop, so when you are feeling hungry you can run out to the car and chow down, and not buy as much in the store. No wait, that part wasn’t it in the article, that’s just what I do. But it probably is a good idea to have some healthy snack in the car. And watch out for stores that have cinnamon and vanilla smells. They trigger the hunger urges.
Two, shopping with a partner, such as a friend or spouse. Now, a partner that is fiscally responsible can be good, because they’ll tell you, “No, no, no, no. You don’t need that stuff.” But, a partner that is a buyer, ah, beware. They can induce you to spend more.
Number three, lack of religion or faith. Gavan Fitzsimons, professor of marketing and psychology at Duke University, says religious people are less likely to make purchases as a means of expressing their identity. Thus, they can be content with generic versions rather than name brand items.
Your mood is number four. A study entitled “Misery is not Miserly” by researchers at Harvard, Standford and other Ivy League schools confirmed what we all know: our emotions have a lot to do with how we spend money. I’ve seen that in my life. When I’m sad and down, I want to buy books or hunting equipment. When I’m happy, I want to buy books or hunting equipment. When I don’t know what to do with my life, I visit a book store or hunting store. It’s true every time. So, if you are feeling down, take a jog or a brisk walk instead of pulling out the Visa.
Five, moving counter-clockwise through the store. Supposedly stores lay their merchandise out to subtly induce us to stay longer, and they use a counter-clockwise direction to do that. Break the habit by first going to the consumer section and returning an item you bought last time, then go straight through the center of the store, turn around and head straight out. You may not get what you want or need, but you will spend less.
Number six is the size of your shopping cart. That’s a given. The bigger the container the more you can put in it, so go smaller.
Number seven kind of stumps me. The article says where your name falls in the alphabet has a lot to do with how much you spend in a store. The theory goes like this: the farther back in the alphabet you are, the last you get picked for things. B, as in the last name Baldwin, comes before T, as in Thompson. So, Baldwin always gets picked for things before Thompson. The theory then says that Thompson gets angry with that all through life, so when he gets older, he compensates for always being last by being the first to buy something new that comes out. And, when things first come out, they cost more. So, Thompson buys the first handheld calculator for 80 bucks, but Baldwin waits and buys one for $8.00. Do you believe that? My dad’s last name is Baldwin, and he bought a handheld calculator for the nifty sum of $80 when they first appeared. That shoots that theory. But then, Warren Buffet - a B - has a handsome sum of money, so maybe the theory is true. The solution: if your name begins with a P or anything after, send a friend to shop for you.
Finally, your genes. Some people are genetically predisposed to spend more money. I want to meet some of those people, because I have some items I want to sell.
In the Bible the Apostle Paul wrote, “Godliness with contentment is great gain ... if we have food and clothing, we will be content with that” (1 Tim. 6:6-8). There is the greatest inducement to spend our money wisely - thankfulness to God for all he has already given us.
WB