3 ways to control your spending in 2014

Science has thrown up some fascinating facts about how the brain operates when we're in consumer mode, and the processes at work when people over-spend. 

Apply some science to control your spending

There are three main factors at work - and to watch out for - if you want to keep spending under control in 2014:

1. Biological Factors: Don’t go shopping if you’re hungry, pre-menstrual or have just emptied your bladder.

You may not realise that your physiology is affecting your behaviour. But when you're hungry you will buy more food and make higher calorific choices at the supermarket. When in an anxious state you will be more likely to impulse-buy. That's because the physical state of high arousal leads to a depletion of the resources that govern self-control. And fluctuations in activity in the brain’s orbitofrontal cortex during the menstrual cycle will make you more likely to go on a spending spree when premenstrual. And more rational and controlled post-ovulation. Even an empty bladder affects your brain’s control mechanisms. Science has shown you’ll be more likely to (sorry) splash out if you’ve just spent a penny. So pay attention to your body before hitting the shops, it may be telling you to hold fire.

Try timing shopping trips with your menstrual cycle and avoid the pre-menstrual phase

2. Emotional factors: Don’t shop if you’ve just had a row, a stressful day or been dumped by your boyfriend.

People experience a range of emotions (anger, fear, sadness) in their daily lives and engage in all sorts of behavioural responses to keep them in check.  Some women find shopping gives them an emotional outlet, the way that alcohol or drugs can do for others. It distracts them from negative feelings and provides comfort in the form of a treat or reward. In fact studies of compulsive buying have shown that its prime function is to repair mood. So spot when emotions are running high and find an alternative way of releasing them. Find  distraction through exercise or relaxation, or seek social support by spending time with friends. Concentration, whether on gardening, painting or rock-climbing, is also a good way to absorb negative emotions. And the Do Something Different approach to behavioural change could help see you through the tough times because it's all about about breaking habits and increasing behavioural flexibility.

Buyer's remorse is like a shopping hangover

3. Cognitive factors: Don’t go shopping with low self-esteem and an “I deserve it attitude”.

Impulse purchases can trigger a lot of self-justification in the consumer, to assuage the guilt of over-spending. Their thoughts echo with the messages that have been implanted by constant brain-washing and bombarding marketing campaigns. Thoughts such as “Why shouldn’t I have it?” “I work hard I deserve it” “My friends will love me for it” and so on. Self-talk can also shift the focus onto the wrong things, “I’m saving £100 by buying this in the sale” (instead of, “I’m spending £200 I don’t have") or even "I'll show him!" Some cognitive reframing can help here. Relabel your credit card your debt card. Silently answer the ad-men back. Recall when you last had buyer’s remorse and tell yourself how you’ll feel tomorrow. And find ways to boost your self-esteem so that you can resist the constant bombardment of persuasive messages. 
Few people greet a large credit card bill with the words, “Because I’m worth it”.

Is clothes shopping a costly mechanism for maintaining self-esteem?

     Remember the first time you went out and bought yourself something to wear? With your own money and without your mum in tow? For many people this was a rite of passage from childhood to  adolescence. The time when possessions started to act as an extension of the self. When the clothes we wore were critical to the development of our identity. It's no coincidence that materialism peaks at mid-adolescence, just when self-esteem starts to take a bit of a dip. And fashion psychology tells us that, for many, clothes shopping becomes a lifelong (and costly) mechanism for maintaining a reasonable level of self-esteem.

     In the course of a lifetime it’s estimated that women in the western world shell out an average of £84,000 (or $107,000) on clothes. If a woman’s clothes shopping years extend roughly from age 16 up to 86 years (although more is spent in the younger than the older years) that’s 70 years, or 3640 weeks, of clothes-buying. And that works out at £23.07 per week. Every single week. It’s a frightening sum. And yet:

• A survey I carried out revealed that 82% of people have at least one item in their wardrobe that they have never ever worn. 
• I also found that one in ten people have at least ten unworn items still with the label on.
• A US survey reported on EliteDaily.com said that 60% of women say they still struggle to find something they want to wear to work or on a night out. 

     Contrast this with Marie Curie, who got married in her navy dress and wore it every single day afterwards, because it wouldn’t show the stains from working in the lab.  Nowadays many women put effort into finding the perfect garment to solve her current wardrobe crisis. Or  current emotional crisis. And many modern woman are seduced into believing that each season must herald in at least one new dress, jacket, coat and pair of trousers. 

    But the secret of dressing well may lie in wearing what you’ve already got in your wardrobe. Reinterpreting those clothes in a stylish and individual way, without needing to add another item. In fact, having more clothes simply adds to the confusion and dilemma of dressing by creating option overload. And buying more simply leads to hedonic adaptation, as I have written about in an earlier fashion psychology blog.  

     Researchers know that our brains encode perceptual information in predictable ways. The brain groups together items that are similar and categorises each new experience according to how alike it is to a previous one. It is wired for sameness, so no wonder novelty feels so exciting. That's why simple changes like going a different way to work, rearranging the furniture or trying a new type of food can give the brain a stimulating prod, diverting it from the old well-trodden path and sending it down a new, excitingly different, pathway. 

     So next time you're tempted to make a 'quick fix' purchase take a step back. Ask yourself if you actually need something new. Or if just need some novelty, to give the sartorial part of your brain a jolt. If so, why not try the following with the clothes you already possess?

• Mix unexpected fabrics and styles to create exciting contrasts; leather with chiffon, tweed and taffeta.
• Forget dainty heels and mix the prettiness of a frock with socks and flat boots.
• Soften the hard edges of leather by pairing a biker jacket with vintage lace or cashmere.
• Try layering or mixing garments in unusual combinations. Wear one dress over another, layer two or more t-shirts, wear a vintage bra over a vest-top or a petticoat over a skirt.
• Men’s clothes are often better tailored than women's; try a man’s jacket belted with a vintage brooch for a cool style. Or turn a large cotton man’s shirt into a shirt dress by elasticating the waist.
• Reverse clothes, wear them upside down or inside out for a new quirky take on an old garment you’re bored with. Rip off and replace the buttons or tie dye the fabric.
• Don't wear things in the way they were intended. A belt can be worn as a necklace. A table cloth transforms into a quirky wrap-around skirt. I have a scarf that’s actually the sleeve of a man’s jacket complete with paisley lining. The friend who made it also makes skirts by sewing lots of men’s patterned ties together. Sleeves sewn together can add up to a funky and unique skirt.

Upcycled outfit by Asli Jackson

• Don't throw out old jumpers, use the sleeves to make cuffs, fingerless gloves or leg-warmers. 
• Revive old trousers as shorts to be worn over funky tights, or unpick the seams and turn into a skirt.
• Cut slashes in an old woollen jumper, hot wash it to seal the edges and create a lacy effect, wear over a contrasting colour t-shirt.
• Take inspiration from artists, like Anu Tuominen who makes bunches of woolly gloves into a shawl, or a scarf from dozens of mis-matching colourful woollen socks.
• Look out for workwear or old military or naval uniforms and make the most of their durable fabrics and stark simplicity.
• Break every colour-matching rule. You will inject energy into any outfit if you STOP MATCHING EVERYTHING.
• Look for recycled fashion labels like TRAIDremade who make an art and a business out of upcycling and transforming old garments into new.
• Or From Somewhere who rescue discarded fabrics from the dustbins and floors of fashion rooms and turn them into beautiful clothes.

     It is sad to think that billions of tons of unwanted clothes get thrown away every year. And that millions of pounds worth of debts are racked up every year through people buying clothes they don't need with money they don't have. 
     So instead of shopping for new clothes why not use some of these creative ideas to save money and work on developing an individual style from the clothes under your nose.  Make your wardrobe work for you, instead of you working for your wardrobe.

Moments of Weakness: Five Impulse Spending Triggers

Do you know what your weak spot is? Is it the shoe section in Harvey Nicks or those racks of beauty products at the airport? Do you buy more food when you're hungry (who doesn't)? More clothes when you're stressed? More gifts when feeling guilty? More of anything-that-isn't-nailed-down when you're pre-menstrual and have just been paid?

People rarely buy stuff for utilitarian reasons. Buying is more often the result of mind-boggling marketing tricks, seductive store layouts and a whole host of biological, psychological and even evolutionary factors.  

Purchasing decisions aren't always made rationally

We aren't always in as much control as we'd like to be, as the growing number of people with credit card debts or compulsive shopping disorders will testify. And men and women shop differently, with more women inclined to spend on impulse.

Impulse buys are a buyer's curse and a seller's dream. 

A recent article on the excellent Huffington Post website has captured the Five Big Moments When You're Most Likely to Overspend. 

According to their writer Candace Braun, those moments of weakness are when:

You're Mindful of The Time:  A slogan that urged people to "spend a little time, enjoy C&D's lemonade," resulted in more people buying a drink, and paying 51% more for it (compared to a those who saw a sign that asked them to "spend a little money"). This 2008 study from Stanford University showed that  'spending time' feels more like buying an experience, not just handing over hard-earned cash. Slogans linked to time, like 'thank Crunchie it's Friday' work in the same way.

If the time seems right.....

You're Trying to Avoid The Crowds: You may feel super-organised shopping at 7 a.m. on a Wednesday, when Tesco is blissfully quiet, but your purse could take a bigger hit.  Being in a crowd makes us less likely to overspend, according to a Journal of Consumer Research study. We are more focused on getting out unscathed than on making another purchase.

I know you didn't come out to buy this, but here you are!

You've Got Money in Another Account: That offer of the £100 bonus for opening an extra account seems a no-brainer. However, a May 2013 study found that people tend to save more when they have just one place to deposit money.  Researchers say that with one account it's easier to keep track of how much is in there -- and how much you're spending. When we have multiple accounts, it's easy to spend from one while feeling reassured there's money in the other account too.

You've Got to Buy Something Embarrassing: To try and mask the embarrassing item in their basket, almost 80 percent of people will pile in unnecessary extras to divert the cashier's and other shoppers' attention, a Journal of Consumer Research study found. Online shopping could be the answer here!

Gift purchases are less guilt-ridden

You Need Some Retail Therapy: It's common to feel the urge to splurge when emotions are high or mood is low. My research has also shown that 75 percent of women are more likely to overspend or impulse buy when treating someone else. Feeling low can lead to us literally trying to buy happiness and buying gifts for those we care about can help us feel more connected to them, as we say in Sheconomics. Of course, buying for someone else doesn't induce as much guilt either when money is tight.

Thanks again to the Huffington Post for bringing these spending triggers to light, and for including Sheconomics in their article - it's always nice to reach out to our US readers - issues with money cross cultural boundaries and oceans too.

Counting the cost of fast fashion

This fascinating article touches on fashion psychology and was originally published in The Conversation

By Alice Payne, Queensland University of Technology

There’s a polyester mullet skirt gracing a derrière near you. It’s short at the front, long at the back, and it’s also known as the hi-lo skirt.  Like fads that preceded it, the mullet skirt has a short fashion life, and although it will remain potentially wearable for years, it’s likely to soon be heading to the charity shop or to landfill.

The mullet skirt may not last more than a couple of months as a fad, but the fast-fashion trend has shown considerably more longevity.  With Spanish brand Zara compressing lead times to as little as 13 days, and the UK’s Topshop releasing 300 new styles a week, fashion trends are being captured and sold far quicker than ever before.

Catwalk styles can become high street fashion within weeks. AAP

In Australia, although Zara and Topshop only arrived in 2011, many local retailers have been following an accelerated fashion cycle since the early 2000s. Valleygirl releases 65 new styles per week, Supre has daily deliveries, and the mid-market Witchery boasts 400 new styles per month.

Fast fashion has enabled a democratic engagement with the luxury of constant novelty, once only the domain of the very wealthy. Now high fashion trends are instantly accessible online, and the physical garments are for sale at prices which have never been lower.

However, the garment’s price tag does not acknowledge the environmental and social cost of overconsumption.

In the UK, some 30 kilograms of textile products, per person, per year go to landfill. What isn’t sent to landfill goes to charity. A single Smith Family sorting centre in New South Wales sorts 10000 tonnes of donated clothing each year. Much of this will be sent to developing countries, a trade that can be disruptive to local textile industries.

Cotton requires a large amount of water to grow – but often ends in landfill. AAP

The two most popular fibres for fashion apparel – cotton and polyester – each have considerable ecological impacts in production. Conventional cotton alone accounts for one quarter of global pesticide use, linked to poisonings and air and groundwater contamination. In addition, cotton requires a global average of 11,000 litres of water per kilogram, to produce.

With a world population of seven billion, and a projected nine billion by 2050, food security and water security will become increasingly pressing policy concerns. The volatility of cotton prices in 2010/11 is possibly a foretaste of this, with cotton prices rising to their highest level in the history of the New York Stock Exchange.

The launch of Spanish retailer Zara in Australia has seen lead times compressed to a mere 13 days. AAP

Australian fast-fashion retailers face additional short-term challenges. In 2011, bricks-and-mortar retail was at its lowest ebb in Australia since 1962, and across the fast fashion market, clothing was reduced up to 70%. Local labels are affected by the rising fibre prices (not only cotton but polyester of cotton quality) and rising Chinese manufacturing costs. The forthcoming carbon price may also lead to rises in the cost of freight and raw materials. In addition, a greater number of consumers are choosing to buy clothing online from cheaper overseas e-tailers.

Australian designers and retailers can adapt to these challenges through examining the garment life cycle to identify points of intervention. For example, more efficient use of resources would see disposable faddish items such as the mullet skirt collected at end-of-life for closed-loop recycling, in which its polyester can become feedstock for new textiles. (See Kate Fletcher and Matchilda Tham’s Lifetimes project, or Patagonia’s Common Threads program.)

Crucially, fast fashion is not merely fast material throughput of garments, but a sophisticated global image and information system which, to some degree, is weightless. As fashion is intangible, it is not necessarily tethered to the purchase of new clothing. An example is The Uniform Project, in which blogger Sheena Matheiken wore the same dress for a year, styled in 365 different ways.  With this perspective, a fast-fashion company’s role may evolve into that of a service provider, not simply a retailer. These services may include styling advice, alterations, clothing libraries or collection of the garment at end-of-life.




In Australia, Supre and Sportsgirl have followed the lead of Topshop and American Apparel in offering a small selection of vintage clothing alongside their new stock.

There is no contradiction in fast-fashion retailers selling second-hand clothing, as the speed of trends mean that styles come in and out of fashion so frequently that some version of “vintage” style is always in style. Within the context of fast fashion as ‘post-brand’, second-hand styles simply become additional grist for the mill, as consumers will mix and remix the product (of whatever provenance) in their personal, restless search for novelty and individuality.

Fast-fashion principles also drive the success of online marketplaces such as eBay, in which second-hand clothing can be circulated again and again, revalourised by individual consumers. Similarly, the Salvos charity stores in Australia and Oxfam in the UK, now sell second-hand fashion online, grouped into ‘lookbooks’, complete with fashion shoots.

While the Rococo excess of a new frock a week may be unsustainable, a different fast fashion – one that relies less on overconsumption of new garments and more on the inventive reuse of existing materials – can emerge.
Alice Payne does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
This article was originally published at The Conversation.
          Read the original article.
       

Be part of the science

TAKE PART IN CURRENT PSYCHO-FASHION RESEARCH 


IF YOU HAVE A SPARE TEN MINUTES WHY NOT COMPLETE THIS SURVEY INTO YOUR THOUGHTS AND FEELINGS .... AND YOUR WARDROBE ... ?


SURVEY HERE

Why scarce goods can be psychologically more satisfying...

I have two girl friends who are constantly competing to see who can find the most desirable but rare item, be it a scrap of vintage lace, ethnic bangle or piece of studio pottery. 

The most prized purchase is, I’m afraid to say, always a one-off piece that the other hasn’t a hope in hell of acquiring. Both are stylish women, but neither is massively well-off. 

So their treasure-hunting requires time, ingenuity and a dose of deviance that consists of never, ever divulging where they got something from. 

Now forthcoming research* from the US sheds some light on this particular type of consumption.

Photo credit http://mrs-sun.deviantart.com/

When people experience economic hardship they attempt to alleviate the negative feelings this induces by acquiring goods that are hard to come by.                        Research published in the Journal of Consumer Research shows that financially deprived consumers prefer goods that are relatively unavailable to others, to offset the feeling that they are comparatively deprived. Many people judge how well-off they feel by comparing themselves to others. When experiencing financial hardship people render such comparisons impossible by acquiring goods for which there is no direct comparitor.

Social comparison is a powerful psychological force. How rich, attractive or successful we feel is always relative, depending on who we are comparing ourselves with, or whether we are comparing our present self with our past self. One person may be quite wealthy, but may actually not feel well-off because a) they are not as rich as their affluent friends or b) they are not as affluent as they have been in past times.

This is reflected in the questions asked in the Financial Wellbeing Index in the aforementioned study, reproduced here:

1. Compared to my financial position last year, my financial position this year is:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

2. In comparison to most of my peers, I am financially:

Much worse off 1 2 3 4 5 6 7 8 9 Much better off.

3. Compared to my material possessions last year, my material possessions this year are generally:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

4. In comparison to most of my peers’ material possessions, my material possessions are:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

5. In comparison to last year, my ability to spend money freely is:

More constrained 1 2 3 4 5 6 7 8 9 Less constrained.

Sharma & Alter (2012) used this scale to measure how deprived the participants felt and found that deprived consumers preferred scarce (vs.abundant) goods when those goods seem relatively unavailable to others in their environment. If you find yourself selecting low scores on these items you may have a tendency to over-compare.

Comparing yourself with others is clearly a dangerous process and one unlikely to have a happy ending. Rest assured there will always, yes always, be someone better off or more beautiful than you. 

Women’s magazines are a classic example – after being saturated with images of impossibly perfect airbrushed models the female reader inevitably feels worse about her looks. 

And when it comes to the state of our finances research suggest that consumers might seek scarce goods for retributive purposes. By acquiring goods that others can’t get hold of people can “get even” with their better-off peers. By consuming limited resources, they necessarily deprive others from enjoying the same privilege. Once girl friend A has snapped up that classic french 1920’s beaded clutch, there’s one less out there for girl friend B to chance upon.

The authors of the US study claim that deprived consumers acquire scarce products to set themselves apart from their financially superior peers. By stressing differences between themselves and those peers, consumers can mitigate feelings of self-threat, because after all evaluations based on social comparison are only meaningful when they are formed relative to similar peers. In other words, acquiring scarce goods might diminish feelings of inferiority relative to financially superior peers by creating the sense that those peers are no longer suitable comparison standards. Then again there's just that satisfying feeling that comes from being an individual and not being swept along with the masses.....

* JOURNAL OF CONSUMER RESEARCH, Vol. 39 ● October 2012

On touching and being touched

“Just hold it,” I heard the man in the Apple shop say to the young executive who had been gazing longingly at the new iPad.

"Don’t touch it"  I wanted to say, "unless you really want to take it home with you."

Touching an object increases our desire for it.

Luckily I can hold back in these situations. I could get banned from so many shops otherwise. I wanted to warn the guy against touching because research shows that when we touch an object we’re more likely to buy it. 

In fact, once we’ve touched it we’ll pay more for it. 

If it feels nice that is. And, let’s face it, Apple products feel nice. Someone once described them to me as ‘lickable’. But going around licking stuff in shops would get us banned, so maybe holding them is the next best pleasure.

Touching increases sense of ownership

You see we’re used to touching stuff that we own. So, when we touch something in a shop, our sense of ownership is increased. And since we prefer the stuff that we own to other stuff, we’re prepared to pay more for it. No wonder so much impulse buying goes on.

An eminent media coach once told me to get my audience to pass a copy of my book to the person at the far back of the room. “Then everyone who’s touched it will want it,” he said. I've never tested that one out (just in case it got passed right back to me).

Touching changes the brain’s responses

Our sense of touch is so fundamental that we like to have it stimulated when we’re feeling a bit low. When young mammals are sick or lost, the brain tries to replenish them by making them more sensitive to touch. Then they enjoy a hug more and can re-bond quickly. It’s the same with consumers. Not that they are injured or have lost their mums, but if they feel a bit depressed their responsivity to the tactile aspects of goods is increased. So if you shop when you feel depressed, and touch a lot of stuff, don’t be surprised if your credit card feels the pain.

The brain changes in response to touch

Strangers: Hands off

We may like touching stuff in shops but we sure don’t want to rub shoulders with other customers. Research shows that even being brushed by a fellow shopper makes consumers more likely to head for the exit. Dr Brett Martin actually did an experiment to test this, half the consumers were brushed against while looking at a product, half weren’t (I know, us psychologists have all the fun). The  touched-ones left the store quicker and reported more negative feelings towards the brand afterwards, than those left ‘untouched’. So a store with narrow aisles crammed with goods is not making it easy for their customers to buy.

Touched babies say No to drugs

OK you might find the stuff about shopping and touching a bit trivial. But did you know that babies who get more cuddles are more able to resist drugs as adults?

Cuddle me cuddle my brain

This was first shown in studies with rats. Mother rats who were more nurturing and attentive produced specific changes in the immune responses in the brains of their pups, leaving them more able to resist the temptation of a dose of morphine later in life. So not only does a mother’s touch actually change brain functioning, scientists now think it’s also protective against later drug abuse.