Among the many sales techniques we are exposed to on a seemingly constant basis is that of how purchasing a particular product or service will save you money. You need it, you should have it, you deserve it, your (fill in the blank) neighbors, family, friends, admired celebrities all have it or want it. Of course, you note that nowhere do these offers talk about how you might actually need something – that is assumed since obviously you don’t want to be without that product.
It is much like the financial markets, best known for operating on fear and greed, while here the purveyor of merchandise or services operates on fear or the desire to be like others AND not be behind them in getting whatever is hottest or newest. Then the clincher – greed – the offer is “below cost”, two for the price of one (just add extra shipping and handling), only while supplies last, call now!
What is truly amazing is how many people cannot see past all of this and understand they are being sold. The seller/marketer is only interested in moving the merchandise and will use any lever that will do it. The constant drum of sell sell sell is what moves much of the economy and there are millions of people who heed the beat and buy, buy, buy. Sometimes, in fact often, they buy before they need something or worse yet when they plain do not need something. Instead of putting away some money for long term goals (a home, retirement, children, education) they can’t spend it fast enough.
That is why you see folks who have nothing saved for the future owning the very latest iPhone or TV or other device or the person who can’t make a down payment on a home buying a sixty thousand dollar automobile. It is also why you see the person who buys the extras instead of the essentials – even when they do not know how they are going to pay the rent.
The bottom line is that you DO go broke spending money, even if you think that spending is for a bargain. If you are really saving, then you are not "spending to save" and understand the conflict inherent in our title above.