Skip to main content

Purchase distancing - how it works

The watch-spend-work treadmill from the Story of Stuff.



Ads tell us to buy things. We buy them. We go to work to earn back the money. Then the cycle repeats.

Locking down the treadmill

In recent times, the only shops open have been the "essential services". For once we could only buy what we actually need.

That's a significant change from usual times, and (after a brief surge of stockpiling) our spending has gone way down.

The treadmill strikes back

Of course the online world means that we can purchase most things even when stores are closed.

Advertising and business love smartphones. For them it's like having a cash register in every home. In normal times there's a gap between when we see and ad and when we make a purchase. Marketers like to close that gap because time allows us the chance to realise that the purchase isn't worth it.

Purchase distancing

In 2020 we all know that creating distance protects our physical health. The same things applies for our financial health.

"Purchase distancing" is a time gap between an ad (or idea) and a purchase. Want to purchase something? Write the item on a piece of paper, or as a note on your phone. Come back to it later. Three days, ten days, 30 days - it's up to you (and probably depends on the item).

If the item is worthwhile, you'll still want it. If not, lose the piece of paper or delete the phone note.

Purchase distancing can save you a bunch of money, and keep a lot of future clutter from entering your home.

Related reading

How to turn little savings into a long-term investment - The $1000 Project.

See how much regular little spends can end up costing you - Less Latte More Money.

Comments

Popular posts from this blog

The Latte Factor

For the first time ever I'm reviewing a novel. Latte Factor is a short story  - around 120 pages - and is equal parts of inspirational story and financial education. The combination of the two is quite rare, and done quite nicely. The story is about Zoey Daniels, associate editor for a travel magazine. Although she's never been outside the USA  - "a travel editor who's never travelled". She struggles with money and is considering a higher-paying job at the company her friend Jessica works for. The job would provide more income, but would also be more stressful and demanding. She already has a nightmare about being on an increasingly-fast treadmill that she struggles to stay on. Her current boss Barbara - aware only of the money situation - suggests she talk to Henry at the coffee shop. This peculiar suggestion is where Zoey's life begins to turn a corner. Spoiler Alert Being a book of fiction, I don't want to spoil the story for you. It's a book you ca...

Dollars and Sense

Dan Ariely is an expert on human psychology and decisions. His book  Dollars and Sense is focussed on how to avoid "money mishaps" . That can include paying too much for something; buying something that doesn't provide value; or in some cases not buying something that we really should buy. We can be better spenders of money by avoiding money mishaps. We can get more value for our money - or get the same value for less money. So what are the mishaps? Here are some highlights. Opportunity Cost This is the idea of thinking about what else we could do with money - and whether that's better value.  In one experiment, people were given the option of (A) a $1000 stereo or (B) a $700 stereo and $300 cash. People chose option A. Then people where given the option of (A) a $1000 stereo or (B) a $700 stereo and $300 worth of music. Now they chose option B. In the first choice, people gave up the $300 because they wanted the more expensive stereo. But when forced to think of some...

Monopoly, money and you

One of the most well-known board games can also be a great way to learn about money and investing - according to this book. Perhaps one way to teach kids (and maybe ourselves) about finance is to play a board game. In so many ways, the game parallels our own financial life - and we can practice financial decision-making without losing any real money. Is monopoly like life? Yes and no. We manage our cash, negotiate, make deals, make choices, go through tough times, make investments, pay tax and reap rewards. To do well we have to make investments. It's very hard to win just by collecting $200 each time you pass go. There are rules, and wise moves. The better we know them, the better we do. However, in real life, you can win without forcing others into bankruptcy. Principles that work in the game and life Diversify. You might have hotels on the two most expensive properties on the board, but if no-one lands on them, you still might lose. Investments have a price and a value. They are...