Many adults know that advertising in all forms is there to impact their daily buying choices. Theoretically, they may be ready to resist the temptation to pick up the phone and call a number on a television screen to order that one thing promised to improve their lives.
They probably know that impulsive purchases like these are a waste of money. But what they may not be prepared for is the long-term lifestyle trends that are presented by the media and advertisers as ordinary.
Overtime, people’s expectations and perception of what’s ordinary may be altered. If a typical middle-class family is repeatedly portrayed as living in a spacious single-family house, owning nicer cars and spending vacations in above-average destinations, this lifestyle may be perceived as the least that is expected.
Aspirations to live at this standard of living may outpace income and budget. And that is when excessive spending on credit cards or personal loans may follow. A spiral of debt coupled with a habit of spending and living at an unaffordable standard could lead to a financial disaster. Scaling back could become even harder as living within one’s means appears to be a compromise.
How could you avoid this fate while you’re surrounded with billboards, commercials and other forms of direct and indirect advertising? The secret is always to maintain an aversion to debt and make decisions based on what you can afford.
Here are two steps to consider.
Can I afford it?
When you consider whether you can afford something — a new pair of shoes or a shiny new car — your decision should be based on whether you will be able to pay for this item in full now. If affording an item means to you that you will put it on your credit card, hope to pay it off eventually, you need to redefine affordability. Buying non-essential items on credit is an easy way to go beyond your means and accumulate debt that becomes too hard to pay off.
Knowing what you can afford also can help you push luxury purchases down the road. For example, you may wait on upgrading your phone until you have the money to do so. Alternatively, you may decide to compromise to buy a cheaper option that you can pay in full for instead of adding more debt. Either decision is more sound than the impulsive lifestyle upgrades that you don’t afford.
What’s driving my decision?
Think of the difference between “want” and “need.” While fulfilling some wants is nice, it is not urgent or justified if you don’t have the money to do it. When you focus on your needs and make the right purchase decisions for them, you actually may end up with some extra cash that help you get some of your wants. If that is not the case still, you certainly don’t want to jump into using credit. Think of what could possibly change and help you pay off your debt? If there is no clear answer on the horizon, then you probably won’t be able to do so.
If what’s driving your decision is simply keeping up with others, and it is not even a want, then you better begin to train yourself on resisting this temptation. Just like you wouldn’t pick up the phone to order the latest and greatest pot for your kitchen, you should be able to opt for a staycation if a vacation is not in your budget. Even when everyone else in your network — or on television — seems to afford something does not mean you must get yourself in debt to keep up.
The writer, a former Gulf News Business Features Editor, is a Seattle-based editor.
Resist lifestyle spending on debt
Standards could be influenced by advertising
Using credit to pay for something doesn’t make affordable
Separate your needs from wants
Check for peer pressures on your purchase decisions
— R.O.
