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”.

Feeling down, dressing down?

Why do some women dress down? We probably all know a woman who, despite her model figure and gorgeous face, doesn't want to be noticed. So she wears camouflage clothes. Not of the army surplus variety, I mean clothes that blend into the background. Often her other half has an ego so huge she’s creeping around in his shadow.
It’s the human equivalent of the spectacularly flashy peacock with his bland bride.
It makes me wonder whether someone has told Kate Middleton to ‘tone it down a bit, love’ for fear she outshines her prince. We all know what happens when a royal girl does that.

Trouble is, if a woman is suppressing her appearance how much of her personality is she also giving up?

Not wanting to be noticed can have many root causes

Appearance anxiety

Appearance anxiety lies behind a lot of dowdy dressing. Many women suffer from body dissatisfaction, and even have feelings of disgust about their physical appearance. These women end up hiding from their own bodies. But they may also be hiding from themselves. Deep down there may be parts of their inner self they are denying. The answer might be to dress as the person they'd like to be, to try and trick the psyche into a more positive state. Try bright saturated hues, funky prints and playful accessories.

Comfort clothing

Everyone knows about comfort food. It’s the bad stuff you eat when you think you deserve it and can’t give a toss about the consequences. I think there’s comfort shopping too. And comfort clothing. The wardrobe equivalent of hob-nobs and chocolate cake. Clothes that are bad for you but beckon to you when feeling down. Jeans and baggy tops are the hob-nobs and chocolate cake of the female wardrobe, my recent research found. They’re comfort clothes that women reach for when they’re in the doldrums.  But when she sees in the mirror how rubbish she looks those negative feelings get reinforced. That's where a downward spiral can begin. But just as it's best not to have too many hob-nobs in the house if you've a biscuit habit, the trick here is to purge your wardrobe of those bad-for-you items too. Start by binning anything that's beige and boring.

Inner and outer happiness

Enclothed cognition

An outfit can both reflect and generate an emotional state. Recent research* shows that our clothes influence how we think and feel. So dressing down should be taken seriously. It could be a sign of depression, poor body image, even a relationship that’s off-balance. Researchers from Manchester  University** have shown that trying on unfamiliar clothes can influence both positive and negative mood states. Basically clothes can cheer you up or drag you down. So if you dress down don’t be surprised if you end up feeling a bit crap too. Perhaps the answer is this....

Happy clothes
I’ve been working with Vogue in Turkey to come up with ideas for mood-enhancing outfits. The prospect that an outfit could ward off depression is very appealing, a nice alternative to drugs.
More to come on that soon. Meanwhile I’m off to put on something neon-bright and snug-fitting. As soon as I’ve finished this chocolate cake.

Interested in the psychology of fashion? Then you'll love the guest blog coming later this week from Dr Jennifer Baumgartner, author of You Are What You Wear. Sign up to follow this blog now.

* Adam, H. & Galinsky, A.D., Enclothed Cognition, Journal of  Experimental Social Psychology (2012). doi: 10.1016/j.jesp.2012.02.008 **Moody et al (1996) An exploratory study: Relationships between trying on clothing, mood, emotion, personality and clothing preference Journal of Fashion Marketing and Management, 14, 1, (pp. 161 - 179)

Six self-enhancement purchases for 2012 (totalling under a tenner too):

How can a second-hand book, a pedometer, a cheap brolly, a pair of tights, six second-class stamps and a packet of seeds add up to self-enhancement? Here's how:

·      Get stuck in to a stonking good used novel   COST 1p

A can’t-put-it-down novel is the perfect way to cherish yourself. On Amazon are tons of good used books available from dealers for just 0.01p. No kidding. Sure they make money on the postage but if you add your 1p book to someone else’s Amazon order you won’t pay extra. Here are some of my all-time favourites all available for 1p:

Any Human Heart by William Boyd

Revolutionary Road by Richard Yates

Perfume by Patrisk Suskind

Room by Emma Donoghue

·      Get a pedometer   COST 78p

Walking is the best way to trim your body and lift your mood. Use a pedometer to see how many steps you can clock up in a day, aiming for 10,000. If you’re monitoring every step it’s amazing how many ways you find to walk a bit further. You’ll be healthier and happier and won’t have been near a gym or put on lycra. This one from Amazon really is only 78p. OK it probably is crap for that price so go for a better one if you can.

Walk your way to health for under £1

·      Leave magazines on the shelf    COST £0

Women feel worse after looking at a magazine (all that social comparison is depressing). And why waste money on mags full of  glossy adverts peddling the 'happiness through having' myth?  There are good free online magazines instead. Or if you must spend out then at least help someone by doing it and buy the Big Issue. Or buy a mag that doesn't bang on about shoes and handbags and whose maxim is 'Curiosity is sacred' - Oh Comely magazine.

·      Spend on a stranger    COST  £1

Research shows we feel happier after spending money on someone else than after spending it on ourselves. When caught in a Tokyo downpour once a Japanese lady came up and gave me an umbrella. I was so touched by her kindness. Why not buy a £1 brolly from a pound store and give it to someone caught in the rain. They'll love you for it. Or jump on the Pay It Forward bandwagon, pay for the next person's coffee in a queue or the next car's toll. I guarantee you'll feel happier.

 Colour up  COST £3.99

Bright colours and a personal treat to cheer the soul. Quell the urge to clothes shop by splashing out on some really brightly coloured tights. They're cheap and cheerful and will add that touch of wackiness to any outfit that's feeling a tad tired. These cerise pink ones are from H&M

·      Six second class stamps     COST £2.16

Another way of getting pleasure through giving. Don't you love getting a letter or card with a stamp on? it's a rare pleasure nowadays. Send 6 letters or cards to loved ones, long-lost friends or just people you know. Say hello, suggest a meet-up, thank them for being in your life or tell them why they matter to you. At 36p each you'll be spreading shed-loads of happiness that'll soon come bouncing back your way.  

Long time no write.

Plant seeds    COST £1.55

        Connecting with nature is so good for the soul.

        You'll feel such a smug-filled sense of satisfaction when you grow something from scratch. I recommend a packet of rocket seeds, dead easy to grow and you'll be nibbling the leaves all summer and sharing them with friends. Even better are nasturtiums, you can chuck the seeds on poor soil and they'll still provide a riot of fiery flowers right through the summer. Even better, you get poor-man's capers from the seeds and the flowers are edible too! 

       Green fingers, flowers and food - the perfect ingredients for super self-enhancement. 

     TOTAL INVESTMENT?     £9.49

     

     HAPPINESS SPREAD AND RETURNED?  PRICELESS!

Try these tips in 2012 and let us know how you got on!

HAPPY NEW YEAR.

The future's bright. The future's orange or banana... but not chocolate.

You know you’re into the festive season when you find yourself sitting down to a meal you ordered back in September. 
Often at one of those works ‘dos’ where the restaurant needed the order for your table of 68 people ahead of time.

And you find yourself wistfully wondering ‘Why?’.

Why did I think I would want steamed fish and a side salad, you wonder, as you eye up the juicy roasts, mountains of potatoes and pillow-size yorkshire puds arriving at other tables.

mmm...wish I'd ordered what they've got...

Here's the reason. We all have really good intentions for our future behaviour. But we’re less sensible when it comes to present, on-the-spot desires. That’s the Jekyll and Hyde nature of our Future Self and our Present Self (and the dilemma in the story of Ulysses and the Sirens if you want to get all mythological).

Would you choose a healthy snack or junk food for yourself next week?

In a psychology experiment carried out by Leeds University Business School in 1998 experimenters asked people what snack they would like to have in a week’s time - a banana or a chocolate bar. Most people made a banana their advance choice.


The following week the experimenters returned and offered the same people a snack to have straight away. No mention was made of their previous choice. Most people, especially women, opted for the chocolate.

People are saying ‘at the moment of consumption I can’t resist vices

But some time in the future I’ll have what’s good for me’.

We have difficulty delaying gratification because pleasure-seeking is such a strong motivator of human behaviour. We’re much better at exercising self-control when thinking about the future. But not so good at the moment of choice. 

That’s why we join gyms we don’t go to, and think we will eat healthier food in the future. It’s why half of all people surveyed last year said they would go to church, whereas in fact 90% stayed on the sofa. And why we don't care for the planet as much as we should.

So next time you want to make a sensible economic decision, try to make it ahead of time. 
Because prescriptive savings programmes, like Save More Tomorrow (devised by behaviour economist Richard Thaler and adopted by firms like AXA) are a brilliant idea. 


They capitalise on this natural human tendency by getting people to decide in advance to allocate a portion of their future salary increases towards their retirement savings. 
Consider which you would do:

a) Commit now to putting 10% of a future pay rise towards additional pension or mortgage payments?

Or

b) When you get your next pay rise will you then make those additional contributions?

Healthy diet and healthy finance decisions have a lot in common! Pass me the chocolate.