ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -To distinguish want from need, ask yourself if you have an item that serves the same purpose. If you do, you probably don’t need it and you may want to reconsider the purchase. If you just can’t get the item out of your mind, consider selling the other item you already have and using that money to pay for the new one!

Detailed explanation-2: -These reactive purchases have become known as the Diderot Effect. The Diderot Effect states that obtaining a new possession often creates a spiral of consumption which leads you to acquire more new things. As a result, we end up buying things that our previous selves never needed to feel happy or fulfilled.

Detailed explanation-3: -In fact, it’s OK to shell out the money for a lavish dinner with friends, or that you should feel free to dole out the dough for an expensive handbag or new pair of shoes. You work hard, and you should feel amazing about spending money on things you love.

Detailed explanation-4: -Buying things isn’t wrong, but while the occasional gift or splurge is a nice way to treat yourself, using retail therapy to try to make yourself happier could be masking other emotions. So how do you know when your shopping habits might be a problem and how can you stop trying to shop your way to happiness?