Have you ever wondered why you left that shopping mall with Rs 5,000 worth of household articles you weren’t planning to buy in the first place? Or why did you buy a particular watch over the other? If you think these were your personal choices, then there’s certainly more to it!
Psychology supports that many of our purchase decisions are also governed by various external forces that lead us to make decisions that might not be in our best interests. Today, let’s delve deep into the psychology of spending and understand the triggers that lead us to make purchase decisions.
Understanding the Triggers and Ways to Break Them Loose!
These are some of the triggers that influence an individual’s purchase decisions, followed by ways to break habits!
Spending Trigger: The Retail Therapy
Many individuals unknowingly engage in ‘retail therapy’. Have you ever felt down and decided to cheer yourself up by going to shop at that luxurious mall?
Research shows that shopping increases the level of chemicals in the brain that regulate happiness. However, the happiness that this buying provides is short-lived, and the problems that emerge later due to overspending become the cause of guilt and stress.
Breaking Habit: Self-evaluation
The exercise starts with a self-evaluation of one’s purchasing habits. This involves asking several questions and introspecting on them. The following list of questions could be delved into:
- What types of products and services do you enjoy spending money on?
- Why do you enjoy spending money on them?
- In what ways do you think you are a ‘good’ spender?
- What spending habits would you like to change?
- How do you think you can change them?
When you feel the urge to shop because you are feeling low, deviate your attention to mood-boosting activities that come at no cost, such as exercising or talking to a friend.
Spending Trigger: Money as a Sign of Love
You buy that expensive necklace for your mother’s birthday. You also buy that gold ring on the occasion of your spouse’s birthday. You do this because somewhere down the line, you are worried about what your family members would think if you spend only Rs 2,000 instead of Rs 20,000. These are all perfect examples of how money gets intertwined with love. We hope that the money we spend will make everything okay.
Breaking Habit: Differentiating Between Money and Love
Periodically buying gifts and spending money on loved ones is normal. However, one should avoid compromising on finances to buy love. You should remember that most people prefer a thoughtful gift rather than an expensive one! Also, trying to buy love through money does not work from a relationship point of view. If you feel guilty about not spending enough time with someone, be upfront about it!
Spending Trigger: The Role of Credit
We live in an era of easy money. Your nearest bank or that fintech app that you use is on its toes to lend you money with minimal documentation. Add to it the present-focused mentality, which could also be the cause of the overuse of credit/debt. Using a credit card to make a purchase allows you to get something today without the need to shell out cash immediately.
Proven Fact: Research shows that people spend less when they use cash instead of a debit or credit card. This is because they feel the pain of parting with money immediately and it is not something which will occur in the future.
Breaking Habit: Shop Mindfully!
Using a debit card or cash for most purchases can help you be a thrifty shopper. However, this does not mean that you should avoid credit completely. Using credit cards can help you build good credit scores, which could come in handy when you opt for a loan in the future.
However, a good way to use a credit card is to shop mindfully by limiting your purchase frequency and value. This way, you would have no problem paying off your bills when they come due!
Conclusion
Earning money takes a lot of time and effort; hence, it becomes necessary to spend your money with the same care by being a mindful consumer! Discussed above were some of the purchase triggers and ways to break them! As a consumer, you should be mindful of these tricks that your mind plays with you and constantly try to overcome them to become an intellectual consumer!
*The article is for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
