Do you feel that Americans are spending more now? The recession isn’t completely over and we’re still trying to be frugal… but trying is the key word here. Are we pinching pennies in order to spend big bucks?
Now I’m going to preface this interesting topic by getting a little personal.
Honestly so far this year I’ve spent a lot of money on frivolous things. More money than I ever have in my entire life. Frankly… it scares me a little bit!!!!!! I’m definitely trying to get back to my PF roots and get back on track. After joining the blogging world and becoming addicted to Twitter, I’ve been influenced by many inspiring beauty/fashion bloggers. I’ve made new friends and found new muses. When I find a blogger that I can relate to, I turn onto a full-on lemming when it comes to product/clothing reviews. Its no one’s fault but mine, really. I guess I like you bloggers too much!
I still try to be smart about my money but lately it seems like frugality is being negated by all of these purchases! So I can definitely relate to this article. Many of these interviewees sound a bit ridiculous, but then again, I’ve been pretty ridiculous myself, really!
Anyway, enough of my rambling. Here’s a snippet of the article!
…The new abnormal has given rise to a nation of schizophrenic consumers. They splurge on high-end discretionary items and cut back on brand-name toothpaste and shampoo.
…The recession is making people think they need to come up with that she describes as “post-rational” justifications for their extravagant purchases, she says.
…Ran Kivetz, a professor of marketing at Columbia Business School, has done research on consumer psychology. He says that consumers’ brains lack a line that separates spending from saving. We practice a certain amount of thrift so that we can justify blowing a large sum frivolously, he says.
Kivetz says the recent recession has made consumer thinking even more conflicted. In the short run, we feel good when we save. In the long run, we tend to regret the denial of a spending outlet.
…At the end of the day, people are saying, ‘There is still risk. I gotta cut back.’ But this is not a typical one-year recession. Life has to have some normalcy. I have to have some luxuries.”
Frankly, I’m tired of tip-toeing around my finances for the past year. This recession is tiring! But that doesn’t mean I should spend like crazy. I need to snap out of it and wake up.
What do you think? Do you feel the urge to spend a little more this year?