I talk about a lot of things, but one common theme is the habit of unnecessary spending on useless junk we don't need or use, and I often mention buyer's remorse. There are many arguments for and against different kinds of consumer spending, but when we regret what we are buying, that should indicate that in that domain at least, we should be more cautious the next time, around.
In an article I read recently from Australia, a survey showed that impulse spending with regrets totals around 13.5 billion dollars annually. That is significant and amounts to over 500 dollars for every person in the country - working or not. And, the biggest offenders are the Gen Z and Millennial groups - the ones that don't necessarily have their working careers or finances settled yet - I wonder why.
In the linked article, the 31-year old (Millennial) estimated that he was spending around $5000 dollars a year on random crap that he doesn't need and regrets later, which is about 6 weeks of pre-tax average salary in the country - or 8-10 weeks of rent.
But in another article, someone who identifies as a Gen-Xer was talking about how Millennials demands in the workplaces are not because they are lazy and unable to work, but are warranted, because we have taught them to be this way.
I agree - but I suspect that what she has framed as positive in the following quote, is not the actual truth.
As parents, Generation Xers have taught their kids to respect themselves and the environment, treat people with dignity, and to not accept disrespectful behaviour. We’ve reinforced the idea that “you can be whatever you want to be”. article
For example, the "respect yourself" has been translated into selfish behavior, the "respect the environment" is in word only, as they are consuming crap they regret, they do not treat people with respect and do not honor commitments and while they don't accept disrespectful behavior, they reserve the right to be disrespectful without consequence.
What Millennials and Gen Z are asking for is not unreasonable: They want work that is meaningful and flexible. They want to belong and don’t want to be valued by their output alone. And you know what? I want those things and suspect you probably do too. article
Yes, I want and have those things too, but they come at a cost. Flexibility is like buying a changeable flight ticket, it costs more. And "output alone" still means that output is necessary - If you bring nothing but the table except demands and entitlement issues, that isn't going to get you the perks you are after. Perks are for performers.
And then this.
The days of spending your entire career with one company are long gone. Instead, we should celebrate when someone stays put for two years – that’s the new normal. People can mobilise and globalise like never before; get used to it. article
Celebrate? No, this is flexibility - there is a cost. There is no celebration, other than being able to be rid of what is likely an underperformer, because the good companies promote the people who are performing. Considering that any job worth its weight likely has a ramp up period of 6-12 months to fully be integrated, the person who leaves after two years has only put a year of work in, but has also spent the last few months of it looking for another job, likely one that pays better - because they are all about "meaningful" work. No, they are all about work that will allow them to consume more useless shit.
The cost to the leaver is that they are unlikely to build up the social capital inside an organization to effectively build a career. Yes, flexibility of workplace is great and very few want a "job forever" in the same company it seems, but this is also one of the reasons that there are so many crap companies that don't look after their people - why, when they are going to leave soon anyway? How do you build a healthy culture full of employment growth opportunity, when the turnover of staff is so high because people are continually leaving for more money.
A third of those surveyed believed that purchase regret is taking a negative toll on their mental health and they’re worried that they’re too set in their ways to manage their money better. survey article
"Too set in their ways" to manage their money better. Yeah, that is the low-experienced, mentally unstable employee we want working for us! New dogs that can't even learn old tricks.
Of course, all of this rant comes with caveats too numerous to even mention, but these two articles go hand in hand, where younger generations are instant gratifying across the spectrum of their experience. It is a disposable consumer mindset, not an investor mindset, and it spills out across the way they approach personal relationships and professional worklife also. There is no "long time" with anything most of them do and while a young life might have a wide road of potential min front of it, over time, the road narrows and eventually runs out completely.
The only thing that is going to save them in the midterm, is that all of the boomers are dying and the Xers will follow not too far behind. However, while that money will pour into the pockets of Millennials and Gen-Zs, it won't stay their long, because the tiny minority that has learned how to delay gratification and commit to the future, will have built plenty of mechanisms to coax it from their wallets - making the disparity between rich and poor even worse, as there really will be, nothing in between.
Somewhere down the road, I get the sense that many will find themselves trapped with nowhere to go, but they won't realize how they got there, because they "respect themselves too much" to take a look in the mirror at their own behaviors.
I could be wrong. We will know in about 25 years.
Taraz
[ Gen1: Hive ]
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The buyer's remorse comes up often, and I think it's often saddled around the problem of choice. I'm exploring the wiring of my processes now, but in the past I did have as much as I wanted but wasn't happy. Now why was that? Given I make a decision to own a copy of New! Super Mario Bros. for the Nintendo DS Lite, I give up on a copy of Kirby Super Star Ultra. Now, if I only pick between those two- I might make it out alright. If I've weighed it against the entire DS library (some odd hundreds of games) I'll feel like I missed out on something better. Especially if I run into trouble in the Mushroom Kingdom.
My anecdote tells one thing. We either reduce how much we're picking from or feel picked apart.
It's funny you mention it because I am reducing what I pay attention to- another paradigm we're in you like to discuss. Books, magazines, and experiences that'll help me capture experiences. Imagine. Your podcast would do numbers.
Choice is a double edged sword - we always want more choice, but it nearly always makes us feel bad - first in the process of choosing and then in thought of the choices foregone.
If I had a pretty talking voice, perhaps I would do a podcast! :D
There is definitely a thought shift from where I grew up and the current generations. I have had times where I impulsively bought stuff, so I can't say I am blameless. I can say that most of those happened when I was younger before I was married. I am guessing as a bachelor the future was less of a concern to me. Now, it takes quite a bit of thought and sometimes multiple spreadsheets before I make major purchases. I can think of a couple of times my wife and I were impulsive, but usually only because we had already discussed the purchase and decided against it several times prior.
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We all impulse buy from time to time, but when it is a known behavior and it is cast aside as "I can't change it" - it becomes something else entirely.
Yes. Impulse becomes the purchase, but the leadup has taken months, sometimes years. I wish I could go back and gather all the impulse buy money I regretted spending.
You and me both! I had a period of my life where I was quite out of control. Thankfully I pulled myself out of that!
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Perhaps it is a good phase for people to go through. Having regrets can lead to better behaviors and nothing is a better reminder than feeling the pain oneself.
Very true!
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It is also, that I do not see a lot of financial-education around (for any age) so one can only learn about spending habits once old enough to look for it, and feel the need for it, themselves (unless you are lucky and your parents educate you about it). Very interesting subject though. Sometimes I also feel like the old way is not accurate anymore but we didnt come up with a new one that works yet...
This is correct too - most of us have to learn from our mistakes - though, I wish I learned from the first few dozen, rather than after thousands and thousands :)
so it is.. the more mistakes the less you have left to commit:))
Yeah, money doe not grow wings and go to money heaven. Folks don't learn from history, and thus make the unnecessary mistakes. The boomers and me generation have been bottle fed on instant gratification and you can only kick the can so far. At some point that can turns into that creepy monster no one wants to see. Sounds like a horror show we may have seen on TV in our youth but never got the message.
The future of the road is littered with so many cans, walking will be impossible.
I used to spend about $2,000 a year on unnecessary things. Then he regretted it a little.
And recently I sold Hive for 20k dollars at 95 cents to buy again for 2-3 times cheaper. But I bought it again for 95 cents. I lost over $10,000 on this trade. And I thought how important is this spending on useless things when one wrong trade equals 5 years of useless spending.
Lessons learned, right?
Also, how important is that spending when put into one right trade it becomes retirement money.
Of course! Now after a good deal (Hive pump) I will spend on useless things with peace of mind :)
Damn that is a lot. He could buy a car for that much...or even better wait a few years and buy a yacht...
Not a car in Australia, unless it is a piece of crap :D
But, investing it wisely and there is quite a difference in a couple years.
I dont agree with her. I have witnessed that Gen Z is raised spoiledly, and if one-kid family, saucines has not limit because parents think their kid is only one in the world.
Spoiled? No! They just know their value!
I wonder what the parents think in a decade or two, when they are still supporting 40 year old kids to pay the rent and buy food.
The same here, many marriages would be over here if parents were not behind them.
See, they can't even manage their relationships without mummy and daddy :D
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Wow.
Strong words from you today.
Your never bashful, but today you got out your big stick to deliver quite a beating.
However, I don’t disagree with what your saying.
Companies poor treatment of employees and employees poor attitude towards companies, may be a chicken and egg phenomenon. I am unsure what came first, but now it’s self sustaining unless one decides to add value and the other reciprocates.
But how do you get people to take the first step, stand and deliver value, before demanding rewards, perks and accolades.
That’s the new million dollar question, and the stick your beating them up with in this article may well be the answer.
A big dose of introspection never hurt anyone, but it has certainly cured some of their ills.
:)
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I wish I could afford to be that frivolous.
I can definitely see people wasting that much money because I have seen all the games with micro-transactions. It's kind of crazy to see how much people spend on games without thinking and I admit it was also something I did in the past.
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