There are many summer time sale offers, whether your interest is in video games, electronics, traveling abroad, or shoes. The combination of these sales, your monthly salary, and either a personal triumph or a personal failure may just breed the habit of retail therapy in you.
Retail therapy is defined as “the act of shopping or spending to improve one’s mood”, according to a TIME magazine article on the subject. (http://business.time.com/2013/04/16/is-retail-therapy-for-real-5-ways-shopping-is-actually-good-for-you/) Who hasn’t indulged in the occasional whimsical purchase as a way of patting one’s self on the back for working so hard?
However, beware. Retail therapy can be both crutch and cargo. Retailers study the psychology behind money oh so well that they can use seemingly helpful behavior to the disadvantage of shoppers.
MSN Money for example lists down 23 different tricks of supermarkets to encourage shoppers to buy and buy more. Here are six of them:
Remember that people have limited resources with which to live a comfortable life. Every time there is a purchase, there is a tradeoff.
So to prevent the unnecessary use of limited financial resources, reinvest such resources first for a better future through schemes that automatically invest money without seeing it first.
Try also spending in cash and leaving behind the marvels of technology that seemingly make living (but in reality spending) more convenient. Leave your ATM, debit and credit cards at home after withdrawing only the cash that you have “budgeted” to spend. Uninstall shopping apps in mobile phones and disable location services that only track shoppers’ whereabouts so that retailers can better understand shoppers’ behavior and tempt them more effectively.
The better saying would be, “when the going gets tough, the tough go investing.”
(Originally written by Efren Ll. Cruz, RFP at http://www.savingstips.com.ph)
FinancePH is an advocacy group founded in 2014 by a group of financial advisors.
“We are the best, largest, most influential and most preferred financial advisors of the Filipino people.“
Contact us if you have questions regarding tax, business law, stocks, investment, insurance, estate planning or money related.
Visit our FB page to view our upcoming seminars that you can attend.
Or book a free financial coaching with one of our financial advisors here.
View the Financial Advisory team of FinancePH here.
Read Our Previous Blogs: