Mindless Consumerism in 2023 shouldn't be a thing, right? After all, we should know by now that it doesn't lead to happiness, because we have had it drilled into us for decades already -
So why do we keep buying?
What else are we going to spend our money on?
We were talking at lunch about what kinds of cutbacks we are making, where most people are doing something to at least feel they are thinking about it. Yet, reading the various reports on how much credit card purchases are increasing, I am not sure how many are making the cuts. For example in Australia, 2022 Spending was tipped to be around 27.3 billion, yet the figures in January were 33.5 billion, which is 22% higher than expected. That is above the average inflation rate, but it is always going to depend on what is being bought.
For instance, in Finland, the national inflation rate is almost 9%, however the inflation rate on food is 16% year on year. This means that while some things being tracked might not have increased much or perhaps in areas that can be cut from the spending, food is one of those things people need to consume. For those who were already on a tight budget, what option is there, but to move to a credit card?
And I think that many have done so in order to maintain their standard of living, with the cutbacks being more "cosmetic" than actually having a significant impact on their financial situation. For example, one of the people said that he made the conscious decision not to buy a duty-free whisky, which unless he has a major drinking problem (he hasn't), isn't really going to do much, unless this is representative of other cutbacks being made in his life.
Similarly, last night I was driving one of the other people in the conversation to a furniture store to look at a sofa. While we drove he was talking about how his mortgage has increased by around €200 a month now and he can feel the difference. Today, I asked about the sofa and he said yeah, it was good, but it might not be quite the one he is after, even though the price of it (€1000) is okay. He showed me the other online, which is very similar but has a slightly different material which he may get instead, which is €4300 euros. That is a difference of €3300, which is 16.5 months of covering the changes to his mortgage repayments - and they might still be going higher in the future.
I have always been impressed at how minor variations in products can elicit such justifications, and posit that it has something to do with the narcissism of small differences mechanism,
Narcissism of small differences
In psychoanalysis, the narcissism of small differences is the idea that the more a relationship or community shares commonalities, the more likely the people in it are to engage in interpersonal feuds and mutual ridicule because of hypersensitivity to minor differences perceived in each other.
The "feud" is through the arguments we make for or against products and the perception of their quality or value. Slight differences between two consumer items makes us "fight" for one over the other and spend an otherwise unjustifiable amount of time travelling between stores, researching online and umming and ahhing over the pros and cons. And then, once we have made the decision and bought the item, we get that kick of dopamine at making the right call and getting what we wanted, until the doubt creeps in on whether we should have chosen the other, or an advertisement appears in our feed based on our searches that gives a new option to consider, lessening the "joy" we get from the purchase, as we are already looking to replace it with another.
And essentially for most products on the market for most things, there are only small differences setting them apart from each other, at least in the price ranges the average person is generally looking. This is the case because they have to compete against each other, so they have to each deliver the core functions, and it is on these minor differences that they can set themselves apart. So, they drive the hype as if it is important and that there is no way a person could be happy unless they have their specific "small difference" in an attempt to influence buying behaviors.
And we fall for it, because even though it doesn't make us happy, we keep going down the consumer path of "finding out more" about products that for the most part, will bring nothing much different to our lives. So, we have a sunk cost in the item, meaning that if we don't buy, it will be time wasted, and we all want to be efficient...
And as my colleagues mentioned today, there is a "journey" in buying, it is a process and for men at least, it seems that this is an important part of the decision making. I think this could be because not only does all the research inject effort capital, it also makes people feel like "experts" on a subject, because they have spent a few hours Googling and reading reviews.
But again, this is on items that aren't going to change their lives, but ask the same people to look into the reasoning for purchasing Bitcoin or their arguments against it, and you will discover a lot of outdated information as pushback, and an unwillingness to spend any time researching it themselves. Yet still, they are confident that they are making wise investment decisions with their capital resources.
Time is money?
It is a misnomer.
Time isn't money, but it is a resource that can be used in ways that can generate wealth, or wasted in ways that cost potential. I wonder if we were to add up all the time we spend "researching" consumer products of whatever kind grab our individual attention, would that time spent have made us money? Perhaps the argument can be made that there are savings to be had, but this is a justification that a lot of my female friends will use - "I saved 20% on this.." But what actually happened is, they spent 80%. Only if it was on a product that was needed and would have been bought anyway, would a discount constitute as a saving - otherwise, it is a spend.
The consumer mindset is more than the desire to consume endlessly, it is also driven by clusters of human behavior that get leveraged to influence our spend. We each have access to a set of resources that we can use for our lives and how we use them is going to affect our experience now, and in the future. Right now, people are being affected by economic conditions, yet the consumer mechanisms are still in play and making it very hard for many people to meet their needs, because they are still trying to meet their wants.
Even if it is on credit.
But while these small differences in products don't matter much for our lives - they can make a massive difference to our finances.
Taraz
[ Gen1: Hive ]
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I'm pretty lucky in the fact that my wife is quite frugal. I tease her that she isn't, but between us here, she totally is. In fact, many times I have to beg her to buy stuff when she is on the fence about something she might want. We haven't really changed our spending too much. I expect that would be a lot different if we had a family to support.
Frugality is the new "little black dress" for sexy :)
It also shows that you are prepared. If you had a family, you'd be in a different situation, but you also would have prepared differently too and perhaps still not had to change much.
Yeah, that is a good point. Eliminating our debt besides our mortgage a couple of years ago has really changed the way we look at our finances. We are a bit more frivolous now, but honestly I am not sure you can call it that. I'd say we moved from a five to a four on the frugal scale if 0 is wanton spending and 5 is total tight ass.
0 = Instagram influencer! :D
Haha, yeah. Some of those trips they take are funded by the brand that is looking to have them promote them though.
If I now liked the sofa for 4300 euros. I would first buy HIVE and HBD for 4300 euros and just wait for the sofa to fall in price and HIVE to rise in price. Until the amount of 7300 euros is reached.
But I feel sorry for the money for such a sofa)
It is a lot for a sofa! but at the same time, it is not uncommon here for some people - it is for us. We wouldn't spend anywhere near that :)
I also remembered Franklin's words about how money works. Time is money.
Money is money. Time is just opportunity to use to make some money :)
go to a shoe store and let's see and quantify how much time women, women hours are lost there I think we would be thinking that it is a lot of money there or a department store, but if we compare if you go to a shoe store how many man hours are lost there that is Infimo we go by size, color and type and that's it, we are very simple and for expenses it doesn't even say so.
Ahhhhhhhhhhh yes, if we go to a car sales store it will take the disappointment of his life because he will see too many man hours wasted seeing details that a lady will never appreciate.
So time is money. I think we are losing too much, it depends on the store.
The time wasted for a man in a shoe store, is when shopping with his lady ;D
We should all get better at evaluating what actually has value in our world. We can justify a lot in the moment, but looking back, was it worth it?
I fully agree with you that time is a resource, the most important in my view; time well spent means wealth, not only from a monetary point of view, it is always my idea of course.
I confess that although here in Italy the prices have risen and also the standard of living, we as a family are currently not accusing it much; it is probably due to the fact that we have always been used to economy, that money has never been so much and that, in any case, we have a very simple lifestyle.
I believe that nowadays learning how to spend one's own money, to evaluate each variable when making a purchase (especially if with important prices) is fundamental; generating installments on installments is something destructive, wealth starts from not having debts instead in today's world we are pushed to constantly contract debts.
I confess that I have two credit cards, my parents both worked in banks; however, the two accounts I have are special since they are accounts for employees' children (one of the Bank of Italy, among other things, therefore really good and which in any case not everyone can really have), I use the cards rightly, I confess however, that I love having cash and, every month, I divide the expenses into various envelopes which I keep in a box so as to be ready to pay all the expenses.
I believe that even the economic and financial life of a family depends a lot on the organization, maybe I'm wrong, I don't know.
This is the way to be in my opinion. I wish we were a bit more basic around here at my place, though overall, not "too bad" I think. We can do better though.
Perhaps there should be an app created that can be used before spending on something wanted (not needed) that will calculate what that money would be worth spent in other areas.
Credit cards are not an issue, as long as clearing the debt monthly to avoid interest. I know people who use them well and actually lower their mortgage through them. However, not many can do that and generally screw it up, having to pay more than they would otherwise.
Well yes, in reality every tool always depends on who has it in hand.
Credit cards in and of themselves aren't a bad thing.
I think a simple dj style is best; I won't deny that with the newcomer the expenses will certainly increase... but it's one of those cases in which I'll be happy to spend more eh eh!😉
:D
I wish we would make a cutback with whiskey. Recently, we have been getting difficulty to buy meat and milk products as their prices have doubled after the earthquake.
This is my point - not really a sacrifice, is it?
Can't even be compared :)
I have just read an article about which the American people made cutting backs for their spendings. One of them is not going to a vacation, but staying at home, and this was called staycation :)
I'm afraid that the real inflation has begun to catch up (in even more niches, that is, including finances) to the government-acknowledged inflation numbers. For example, face-to-face traders of physical gold around here ask about 5 % more for the same coin than...last month.That might be the bank run news but even if "just" that, it doesn't seem it's over.
We've had a long period of political populism from all sides, besides that. Stupid (more like custom-made for our kind of folks) measures, lots of free money that sinks away from any productivity, too.
Meanwhile, the simple thing that anyone can do is actually filter one's own spending. I try channelling any excess spending of mine into what I consider to be assets. Or at least, durable goods. Trying not to pay (i.e. not buying those) for the junk stuff.
Those filters seem to be quite strange for some people, as they make purchases that are far from necessary in one area, then are unable to be necessities in another - turning to credit. Seems backwards to me.
Here in the USA — at least among our friends — a good bit of "social narcissism" revolves around how much of our lives we can get from 2nd hand stores and thrift stores, rather than buying new. There's a "new smugness" that comes via "doing withOUT," and how much you didn't have to spend at the supermarket because you made it/grew it yourself. The market for truly older used cars is hot because people are buying cars that are "less computerized," so they can work on them, themselves, rather than rely on garages with modern diagnostic computers.
In some ways, it's showing shades of Sci-Fi writer Frederick Pohl's controversial 1950's novelette "The Midas Plague.".
=^..^=
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It is a kind of virtue signalling, isn't it?
"I don't need more"
(while actually buying more)
I get the work on the cars thing (though I haven't done this), just because it is fun to do. But is it really saving money?
its high inflation on food I think food should be the cheapest thing one can but
Food can be crazy here at the moment, even if cooking at home.
It is ironic as we have just paid off most of our credit balances. Just in time it seems as well. It felt good and glad we no longer have a desire to run up those balances chasing those wants.
It is a good feeling to be debt free. Looking forward to having the mortgage done one day too!
Now that world has been going through a lot of change, we are going to be seeing some worst times. I have reached this conclusion that you don't know what to do with the life, because for some money can be the refuge, for some people is the refuge and for some mix of two is needed. I guess there is some of the things that are always manipulated for us. Sometimes everything is valuable and sometimes nothing is valuable. Time kind of has this spectrum of colors which would be showing us what is valuable and what is not.
One of the funny things about seeking money, is that it tends to require the work that keeps a person employed during the bad times too.
It looks like your friend isn't willing to cut back during the bad times and I would have just chosen the bad sofa. It's not like you can't get a better one when your financial situation is better. The mindset of people is always weird and sometimes, I think people just want the best thing out there. I don't mind getting something cheaper if it's not the best.
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People are weird. I am pretty sure he will go for the cheaper once he thinks a bit more on it, but will it make him happy? No. But the other wouldn't either, but he won't recognize that.
When inflation sets in, many cutbacks should be made. I know I have made tons of it even knowing I spent almost all the funds I had to get treated when I was sick.
Time is a special thing that must be used wisely and as you said, "Time is a resource that can be used to generate wealth".
Illness is expensive in so many ways. It is why health is wealth.
We know consumerism does not lead to happiness but comparing every second with each other about whom has the latest cellphone or the most expensive shoes bring people to unhappiness. So consumerism is seen as a more proactive way of being happier.
Someone looked at my phone the other day and noticed it was relatively old (considering most people here) and remarked on it. For now, the battery is good, the phone is responsive enough - there is no need to change. Soon though.
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Splinterlands got me with the "small difference" from Day 1 -- I just had to have the GF versions of the cards instead of the RF versions that do the same thing.
Outside of my Splinterlands investment though, I really have cut back on eating out and going to clubs every weekend. I am much more selective with the events I go to and only eat out once a week now. I can see the savings, but then I put those savings towards more festival trips and I'm back to square one.
While I agree that time is not always money, I don't think the phrase is a misnomer. It all depends on the angle you're viewing things from. If I spent 2 hours to get a product for $100 instead of paying $250 for the product, it means I used 2 hours to make/save $150, which is cool.
Furthermore, when people spend hours to research a product before buying it, their top priority is often "the best deal" in monetary terms. Other factors can follow. Nevertheless, the entire piece is interesting.
Well, as I understand it, it is proven that consumerism has to do with psychological factors; and the marketing has explained it very appropriately in all its breadth: The colors, the smells, the sounds, the words, the tone of voice, the level of lighting, the subliminal messages, and even the prices that touch certain amounts (such as $9.99 , $1.99, $99.99, etc.), influence people's purchasing decisions so that they buy things that they don't really need, or that they need and can get at a cheaper price. This is so, and large companies know it.
Thus, the differential value or real quality that exists between the different products that people buy preferring over others is generally minimal, null, or already decidedly subjective. But most people have a hard time understanding all of these things.
I personally think that the only solution for not being consumerism prey is to become conscious consumers. This means, among many other things, being able to distinguish what we need to buy, and trying to buy it at the best possible price and of the best possible quality, based on the budget we have for such a matter. Perhaps this way we will not have the best of the best, but for sure the best that we can afford given our purchasing power and in direct relation to our personal needs.
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