Another lipstick, a glass of coffee before work, a funny pair of socks… Sometimes we ourselves don’t notice how we spend a lot of money on unnecessary little things. Why does our brain ignore these processes and how to teach it to track spending?
Why at the end of the month we sometimes do not understand where our salary has disappeared? It seems that they didn’t acquire anything global, but again you have to shoot from a more perspicacious colleague until payday. Art Markman, professor of psychology and marketing at the University of Austin, believes that the problem is that today we are much less likely than before to pick up the usual paper money. And buying anything has become much easier than 10 and even more so 50 years ago.
Galactic Size Credit
Sometimes art predicts the future. Art Markman cites the first Star Wars movie, released in 1977, as an example. The audience was amazed that the heroes of the sci-fi tape do not use cash, paying for purchases with some kind of “galactic credits”. Instead of the usual coins and banknotes, there are virtual amounts that are on the account. And it is completely incomprehensible how you can pay for something without having something that physically personifies the money itself. Then this idea of the authors of the film shocked, but today we all do something like this.
Our salary is transferred to personal accounts. We pay for goods and services with plastic cards. Even for the phone and for utility bills, we simply transfer money from one account to another, without approaching the bank. The money that we have at the moment is not something tangible, but just numbers that we try to keep in mind.
Our body is not just a life-support system that supports the brain, reminds Art Markman. The brain and body evolved together—and got used to doing things together. It is best that these actions physically change the environment. It is simply difficult for us to do something absolutely speculative, something that does not have a material manifestation.
We don’t even have to make an effort to register somewhere – we just need to know the card number. It’s too easy
Therefore, a developed system of settlements rather complicates than facilitates our relationship with money. After all, everything that we acquire has a material form – in contrast to the money with which we pay. Even if we pay for some virtual thing or service, its image on the product page looks much more real to us than the amounts that leave our accounts.
Apart from that, there is practically nothing to prevent us from making purchases. Online hypermarkets have a “one-click purchase” option. We don’t even have to make an effort to register somewhere – we just need to know the card number. In cafes and malls, we can get what we want by simply placing a piece of plastic on the terminal. It’s too easy. Much easier than keeping track of income and expenses, planning purchases, downloading smart apps to track expenses.
This behavior quickly becomes a habit. And there is nothing to worry about if you are satisfied with the amount of money that you spend and the amount that you manage to save. If you want to still have enough money for a week’s supply of food after an unscheduled trip to a bar with friends (especially if it’s a week before payday), you have to work on something. If you continue to behave in the same spirit, it is better not to dream about savings.
The habit of spending, the habit of counting
It is very likely that you often have no idea where the money has gone: if some action becomes a habit, we simply stop noticing it. In general, habits are a good thing. Agree: it’s great to just turn the light on and off without thinking through every step. Or brush your teeth. Or wear jeans. Imagine how difficult it would be if every time you had to develop a special algorithm for simple everyday tasks.
If we are talking about bad habits, the first thing to start the road to change is to try to track those actions that we usually do “on the machine”.
Art Markman suggests that those who have found themselves having problems with compulsive and inconspicuous spending, to begin with, track their purchases for a month.
- Get a small notebook and pen and keep them with you at all times.
- Place a sticker on the front of your credit card reminding you that every purchase must be “registered” in a notepad.
- Strictly record every expense. Write down the date and place of the “crime”. At this stage, you do not need to correct your behavior. But if, on reflection, you refuse to buy – so be it.
All changes begin with such a simple and at the same time complex step as gaining knowledge of your own habits.
Markman suggests reviewing the shopping list every week. This will help you prioritize spending. Are you buying things that you don’t need at all? Are you spending money on things that you can actually do yourself? Do you have a passion for one-click shopping? What items would be left in stock if you had to work harder to get them?
A variety of strategies and methods have been developed to combat uncontrolled buying, but all changes begin with such a simple and at the same time complex step as gaining knowledge of your own habits. A simple notepad and pen will help to transfer our expenses from the virtual world to the physical world, look at them as if we were taking out hard-earned money from our wallet. And, perhaps, refuse another red lipstick, cool but useless socks and the third americano of the day in a cafe.
About the author: Art Markman, Ph.D., is a professor of psychology and marketing at the University of Texas.