How Stress Affects Our Purchasing Habits

As Dan Ariley informed us in Predictably Irrational, "Emotions are a part of our everyday life, and it is a good idea to learn how to overcome them when it comes to spending." Below are four instances of stress influencing purchasing decisions, and tips on how to avoid them:

1. "You are what you own." This seems to be most prevalent with our generation, and those younger than us. We are inherently concerned with self-image, and how others perceive us. So what do we do? We purchase brands that reflect our desired self-image. Unfortunately, savvy marketers are well aware of this phenomenon and in addition to creating additional stress, this habit can be extremely expensive to maintain. SOLUTION: Focus on your future goals, and savings.
2. "Wearing brand 'X' will help me fit in." Does the term "retail therapy" sound familiar? When we are feeling disconnect to our peers or life itself seems bleak, a shopping trip seems like the perfect fix (maybe I'm speaking for myself here)! While going shopping to make yourself feel better isn't a terrible idea, going shopping with high levels of stress and emotion can lead you to spend more, in the attempt to feel more accepted. This is kind of like going to the grocery store when you are hungry. SOLUTION: Do yoga, then shop for products that make YOU happy.
3. "Shopping > Boredom." This is pretty self-explanatory and leads to purchases we are soon to regret. This habit can leave you short on cash and stressing about how you are going to pay for more necessary items like groceries or gas. SOLUTION: Find FREE things to do when you are bored.
4. Shopping to solve others' problems. When a friend or family member is under considerable stress or some other negative emotional state, it is natural to want to help them get out of their funk. What better way than to buy them a treat? Although the intention here is valiant, this solution method often escalates. Eventually, we are faced with a situation we can't afford to fix. SOLUTION: Separate your emotions from the financial situation at hand.

-Namaste!