This has led me to a few questions about the social aspects of spending.
Why do we spend more in a social setting? Why do we spend more when we're having fun? Do we subconsciously equate the fun that we're having with the money we're spending? Do we think that if in that moment we stop spending, the fun will stop? Or is it that we feel the need to prove ourselves to those around us and therefore spend money as a symbol of status?
Truth is, I don't know. I really think that when I'm having a good time I somehow tie that positive experience to the number of dollars that have left my pocket or the pockets of those around me:
Quality of experience being directly correlated with number of dollars spent.
Fundamentally, I know this isn't true and I've had wonderful times for free. However, I can't help but look back on the receipts of my escapades with friends and think..."Why did I spend that much again?" What it usually comes to is that in that moment I'm thinking "Let the Good Times Roll...Who cares about money? Let's live in the moment"...
This seems to relate to a fundamental belief that exists within society:
"Cheap things are no good and Good things aren't cheap"
This relates to products just as much as it relates to services or experiences. With this fundamental belief at the core of everything we do, I wonder how much of our spending is simply to achieve a great/fun experience...Is my inside voice really saying "This isn't going to be a great night until you've spent at least $80" and therefore in the effort to achieve that experience I spend at least that?
Who knows? What I do know is that I undoubtedly spend more when the goal is 'crazy fun'; and especially more if the goal is 'crazy fun with friends'. I think I'm going to experiment and aim for fun with friends with no money. I wonder if my post-activity feelings would be just as positive as those related to nights when I've spent a lot.
We'll see how it goes. What are you guys' thoughts? Is this a familiar experience or am I the crazy nut alone in this?
Marielle des Etages
I can very well relate to you as I noticed the same behavior when I looked back at my spending in retrospect after reading your post.
ReplyDeleteI think having well known that money can't buy happiness and fun we still get into this thought of not losing the fun once we have it by being miser and unless it very strongly affects our pocket, we tend to shell it out.
Could this be related to the behavioral economics perspective that Tim Smith had shared in class about the endowment effect - when you have the happiness you value it more? At the start of that party with friends you would decide to have a much lesser budget and would mostly tend to exceed it when you are in the happy environment.
Interesting to note that your friends are the same in both the phases (during planning and actually being at the party) and the social pressures are the same, so perhaps the effects of those can be neglected.
Marielle, you're definitely not crazy!
ReplyDeleteI never thought of that before but indeed when the good times are here the spending seem definitely worth it. That must be why I spend so much money in good wine bottles.
More than a price limit to reach, in my experience it's about setting the mood and valuing the moment and/or persons you'll share it with. You'll always want the best for the people you value the more around you. The easy path society has offered us is that happiness can't be bought but can definitely be emulated.
As my mother is always saying me, if you want something, make it happen. And if that means spending money, go for it. It's definitely worth it eventually.
Barthelemy