why buy

One of the questions asked to my students at the last lecture of the module was this:

Qn: Which one would you choose?
a. An annual income of $50,000 while the people around you earn $25,000 a year
b. An annual income of $100,000 while the people around you earn $200,000 a year

Go on, which one would you choose? :)

This is called the comparison dilemma. Students in my classes were quite evenly divided in their choices. In other words, about half chose to have a lower income of $50K instead of $100K as long as they are earning more than the people around them.

The point we wanted to highlight in this lecture (on financial well-being) is that very often, decisions we make on purchases (especially expensive/branded products or services) are based on comparison with my peers or people around us - what would be your standing among your friends after the product purchase?

Of course, nowadays, an added conscious/sub-conscious factor to consider would be the opportunity to flaunt the purchase in FB.

My friend's 12-year-old posted a picture of her dessert and a glass of wine with the caption wishing her mum and dad a happy anniversary. Those of us who knew that my friend's husband works abroad became immediately aware that the wedding anniversary was celebrated without the husband's presence. This is such a sweet child. But one of her friend's comments made me rub my eyes: "my parents' anniversary last week, so much better, got to eat xxx, costs xxx"

My goodness.

Oh well. Back to my point. i think it's sad if we buy stuff so that we can be on par or better off among our social circles.

Be kind to mother earth please. There is enough rubbish already.