Have you thought about the psychology of money and why we purchase stuff we don’t need?

We tend to squander money illogically because we’re emotional beings. Then, we try to explain our actions with logic. Remember, when we shop, our brains give off dopamine, the happiness and expectation chemical. Dopamine releases BEFORE you purchase stuff, not later. Realize that the expectation of the purchase is more stimulating than the ownership. It’s why you enjoy browsing the internet when the actual package arrival isn’t as exciting.

Additionally, people purchase things to control feelings. Think about triggers like stress, monotony, despondency, and/or angst. It boils down to retail therapy. You want to pacify your emotions. We also purchase stuff because we see others that have things that appeal to us (keeping up with the Joneses). It’s basically social media influencing us. We buy an expensive car to look successful.

And, sometimes we’re coerced into a purchase. Ever had someone say it’s only going to be on sale today, then the price will go up significantly? This will cause us to make an impulsive purchase even if it’s something we didn’t really want.

Of course, marketing is designed to get us to part with our money. They use things like color, price, reviews, and where the item is placed in the store to entice you to buy the items. Additionally, people today expect instant gratification. So, by encouraging you to buy with a quick shipping turnaround, 1-click purchase (I never do that), etc., the vendor is hoping to get you to spend. Ever spent more at a retailer just to get FREE shipping? Did you even need or what those extra items? Probably not.

Moral of the story:

Perhaps it’s time to understand the psychology of money. Understanding gives you more control when you know the triggers. Remember, they’re emotion, boredom, comparison and scarcity. Ask yourself, do you really want and/or need this thing? OR, are you responding to some kind of feeling. I often sleep on things before taking a plunge to purchase. I good night’s sleep provides a lot of perspective. This is especially important to understand while we’re holiday shopping.