10 reasons why We lose Money

As a mature man with fully loaded responsibilities in life we surely think a way on how to save money for future use. However would it be more effective if we don't know some of the reasons why we lose money? I guess not, that's why this article aims to tackle about the 10 ways why we lose our money and how it occurs.

Please note that the 10 reason present in this article were adopted from the ideas given by Brilliant Millennial.

Here are the 10 reasons why we lose our money;

1. DIDEROT EFFECT

   This happens when we buy new things but then again because the other things which is already in our possession doesn't much the newly bought one then we ought to replace them and acquire another new things which we actually don't needed. This effect often serves as fulfillment to ourselves or to make us happy because of the said action. Say for example I bought I Phone 11 or any other high end brand of mobile phone then because it's new then I would like to buy phone cases that will suit the mobile phone I acquired even if I still have cases in my possession.

2. Persuasive Shop Assistants

   Usually when we go shopping, shop assistant persuade us to buy their product and claim that their products are best when it comes to quality. Personally shop assistant sometimes are annoying because they keep on intervening in my decision making about what to buy whenever I go shopping hahaha lol. In the end if they succeed in persuading you then you'll end up buying their goods even if it is unneeded.

3. Impulsive Buying

   Impulsive buying is all about emotions, if we are often sad or stress then probably we think of shopping and buy all that we desire to relieve our sadness or stress without knowing that we are already losing a lot of money. Technically this is one of our defense mechanism to fight negative emotions.

4. The Snob Effect

   This effect often connected to those person full of pride and boastful. Here we buy things that the others don't just to make sure we stand out. The reason behind this effect is simply because we wanted to be the center of attention and possessing new things just like having a newly release mobile phone or newly designed fashion clothes or shoes is surely one of the best way to gain the spotlight.

5. Subliminal retail tricks

   This is all about our senses, typically it is for marketing strategies used by marketing managers and specialist to attract buyers, they usually use soft music , fragrance and pleasant colors for visual presentation to attract customers and buy their products.

6. Bandwagon Effect

   This effect is all about trend. We buy things or items because it's fashionable and everyone else has it. We buy these things though we don't actually need it because we want to keep up with the trend. Though nowadays we can keep creating tiktok videos because its the current trend and we don't have to waste money for that. However, I have a good example for this effect, remember the sunflower dress, surely you know it or Vice Ganda's star tattoo on her neck these examples became a trend was it? and because of that we disburse money.

7. Cheap Goods

   Surely we agree about this one thing, we ought to buy things that is way more cheaper than what we need. Best example is we buy local products which mimics or looks like the branded one to save some money but the disadvantage of this kind of mentality is that in reality we actually lose more money than saving. Let say I bought local version of a branded pants then after a week it broke apart so I need to pay again a certain amount to the repair shop to repair my pants where if I bought the original one maybe my expenses wouldn't have to be more because the original is far more great in quality.

8. Items for the Future

   Sometimes we buy products that we think we can use in the future though in reality we don't need it at all. For example, in my opinion I think buying some clothing today for my future baby is good but because I don't know what could be the gender of my baby so I need to buy clothes both for female and male which in practical point of view is a waste of money.

9. Fear

   Fear may also trigger us to buy something and waste our money because we think that if we pass on buying goods which we didn't plan to buy, then the next time we may not have enough money to purchase that product or the product may no longer available so in the end we will decide to buy it. One of the best example of this is the panic buying during the early blast of the pandemic, people bought bulk per bulk of alcohol, sanitizer, face shield and face mask because we fear about what will happen in the future during the pandemic in other word this is what we call " Panic buying".

10. Sales and Promotions

    Perhaps this is one of the most common reason why people waste their money. Because the markets offer sales or promotions the shoppers are being magnetized to buy the products because it's way cheaper than its original prices most especially if the products are branded then most probably we are going to buy it. Say hello for those who often waits for a 50% sale, Lol.

That's it for the 10 sure reasons why people waste or lose their money. I hope this may help you realized something!

Note: this article is not Proofreaded!