12 mental traps that lead us to spend more money

There are several ways to induce us to spend more in a thoughtless and even impulsive way.

We live in a consumer society. We are constantly buying thingsWe are constantly buying things: we jump at bargains, we renew our wardrobe every few months, we obsess about the new model of a cell phone, we look for packs and limited editions of our favorite products, we buy new systems and entertainment elements... and we often don't realize how much we spend and how we spend on things we don't really need. And sometimes, later, we regret it. Why do we do it? What drives us to overspend?

In this article we are going to review a series of mental traps that lead us to spend more money, often favored byoften favored by the marketing departments of companies.

Different mental traps that cause us to overspend

There are many mental traps that exist to make us overspend. These traps, which we often provoke ourselves, are exploited by the different are exploited by the different advertising strategies of big brands and department stores. Others, however, do not need to be used: we carry them out ourselves without anyone trying to attract our attention. Here are a few of the different mental traps that most people fall into.

1. Feeling of reciprocity

The interaction between buyer and sellerThe interaction between buyer and seller, especially when the latter makes a supposed concession and/or uses emotionality as an element of persuasion, can generate the feeling of needing to reciprocate the interaction with a greater expense. This is an element widely used in the commercial sector when there is a face-to-face interaction. The idea is to assume that what the other person is doing is trying to advise us as a friend. In this way, the commercial background of the interaction becomes secondary.

2. Desire to be consistent

Another element frequently exploited by the commercial sector is the desire on the part of most people to be consistent with their previous opinions and actions. This type of mental trap is what that makes us loyal to a brand despite the fact that there are other alternatives of equal or higher quality and less expensive. of equal or higher quality and cheaper alternatives. It is also used to sell something at a general level so that the person accepts and then tell them the small print (something that many people end up giving in to only because they have already been positively predisposed and so as not to generate a distortion with their previous opinion).

3. The omnipresent optimism bias

Being optimistic is positive in many ways and helps us to face the world with enthusiasm. However, it can lead us to underestimate the risks. In extreme cases, this will lead us to underestimate the need or economic capacity adequately and lead us to spend more money in a more impulsive and less reflexive way. lead us to spend more money in a more impulsive and less reflexive way..

4. Celebrations and events

It is common that in big parties and special moments such as Christmas we tend to spend more. It is a time when we feel we can afford to spend extra and sometimes these expenses exceed the limits of what we had planned. This also extends to days created and prepared by brands and retailers to stimulate mass consumption. to stimulate mass consumptionsuch as sales or Black Friday.

5. Shopping as a way to escape

Many people resort to shopping as a way to distract themselves and forget their problems, without actually needing or intending to buy anything. Also can also serve as a way to increase the self-esteem of people who have low self-esteem, trying to improve their self-perception throughIt can also serve as a way to increase self-esteem in people who have low self-esteem, trying to improve their self-perception through shopping (either by being well served by sales clerks or by buying something that makes them perceive themselves better, such as clothes). Although it is something that can occupy free time, the truth is that it can lead to large outlays and in some cases can even become compulsive and pathological.

6. Limited availability

The fact that something is apparently temporary and restricted attracts attention and facilitates spending, since not doing so would mean missing an opportunity that may not happen again. This is a frequent commercial strategy to generate a sense of urgency and push to immediate and unreflective purchase. It is a resource used in products of any kind, from food to clothingfrom food to clothing to any type of instrument or tool.

7. Offers and bargains

Second unit at half price! This and other offers are some of the most common elements and ways to facilitate the purchase of various products, often also as a way to compete with other brands. The fact of being able to get a free unit, receive something extra with your purchase or make a second unit cheaper makes us consider buying and spending money on something that, perhaps, we do not need or were not looking for.

8. The halo effect

The halo effect is an effect that supposes that in the presence of a positive characteristic in a person, we tend to consider that their other qualities will also be positive. For example, if someone is attractive they will tend to be considered more of a good person than if they are not. This effect is generally used to talk about how we value other people, but it is also applicable to products and is used when presenting the product or in advertising campaigns.

9. Credit card use

Different studies have shown that, as a general rule, we tend to spend much more using a credit card than if we have to pay in cash. The fact of paying in cash forces us to see the amount we withdraw and contrast it with the amount we have on hand. However, the same does not happen when using the card: we simply swipe it and type in the PIN. This makes it easier for us to spend more, because payment is made in a way that is less obvious to our conscience..

10. Mental accounting

Having a good accounting taking into account what we earn and what we spend is something fundamental to have our money organized and to keep our expenses under control. But at the same time, it makes us not count on possible extras, and we do not know exactly what to do with them. And the fact is that the origin of the money and the expectation we have of it will make us value it in a different way.

Let's imagine that we find 20€ in the street, or that someone gives us a gift of money that we did not count on: not having foreseen it, we will not have the same level of desire for conservation as that which would generate a money that we have earned by working. Thus, this can generate that we tend to spend it on whims in an uncontrolled and thoughtless way. and thoughtless.

11. Fashion and trends

Being fashionable is another of the small mental traps that push us to spend more money than we should. The need to feel appreciated and admiredThe desire to be trendy and not to be left behind or to maintain a sense of belonging to our social group may be some of the reasons behind it.

If our idol and role model wears a certain brand of clothing or cologne, or if it is fashionable to wear a petrol blue suit, it is much easier for us to spend money on these items even if we don't really need the product. We don't want to be left behind, and that may push some people to buy something to be fashionable.

12. Favorable currency

One aspect that also leads us to spend a lot more money than we usually would is only when we travel to other countries that do not have the same currency as we do, especially when the local currency has less value than our own.

Generally we do not have in mind the exact exchange rate, but the idea that the value of our currency is higher. This means thinking that we have more purchasing power, which in turn makes it easier for us to spend more moneyThis in turn makes it easier for us to spend more money because we are not very clear about the exact value of money and assume that whatever we buy will be relatively cheap. Thus, we buy more than we usually would. Conversely, a country where our currency has less value than the local currency will make us tend to control more how much we spend.

Bibliographical references

• Cialdini, R. (1983, 1984). Influence. The Psychology of Persuasion. Revised Edition. HarperCollins.
• McGuire, W.J. (1969). An information-processing model of advertising effectiveness. In H.L. Davis & A.J. Silk (Eds.), Behavioral and Management Sciences in Marketing. New York: Ronald.
• Thaler, R.H. & Sunstein, C.R. (2008). Nudge: Improving Decisions About Health, Wealth, and Happiness .Yale University Press.
• Wertenbroch, K.; Soma, D. & Chattopadhyay, A. (2007). On the perceiver value of money: the reference dependence of currency numerosity effects. Journal of Consumer Research, 34.