
In today’s world, it’s so easy to get carried away by the pursuit of success and hard to distinguish if that pursuit is just to be successful or if it’s a desire for status and validation. This is why we will be going through a concept called Conspicuous consumption.
What is Conspicuous Consumption?
Conspicuous consumption is the act of flaunting one’s wealth and social standing through extravagant spending.
It was coined by economist and sociologist Thorstein Veblen in the late 19th century. With conspicuous consumption, the emphasis is not solely on the utility or intrinsic value of what money is spent on but on the social prestige and recognition that comes with owning and displaying them. And with the accessibility that social media gives, conspicuous consumption has become a fast trend.
Do you think you might be guilty? Keep reading.
Conspicuous consumption is the public display of wealth.
Characteristics of Conspicuous Consumption
- Visibility: Conspicuous consumption is the public display of wealth. Purchases are often flamboyant and easily recognizable as markers of affluence. An easy example is getting the iPhone 15 just for the aesthetic and social status attached to it.
- Social signaling: The primary goal of conspicuous consumption is to signal your economic success and social standing to others. It is a form of communication to establish your position in society. It’s like talking without saying anything because your signals speak for themselves.
- Extravagance and excess: Conspicuous consumption often involves purchases that go beyond basic needs. Remember, the emphasis is to show extravagance and excess; to show that you can afford more than what is necessary for a comfortable life. The idea is for people to know that you have.
- Social Comparison: This is comparing possessions and lifestyle choices to those of others. It often leads to a competitive cycle of acquiring more extravagant items to outdo other people.
- Public recognition: A key characteristic of conspicuous consumption is the need for public recognition and admiration. People tend to spend more than they need with the expectation that others will take notice and acknowledge their elevated social and economic status.
The idea is for people to know that you have.
Why do people succumb to Conspicuous Consumption?
- Social status: One major reason is the need for social status and recognition. Human beings are inherently social creatures, and the desire to be admired, respected, and accepted by others is a powerful motivator. By getting high-status things, people can show their success and elevate their social status in the eyes of their peers.
- Validation and self-esteem: Another reason people succumb to conspicuous consumption is the quest for external validation and a boost to self-esteem. When people get high-end items, they can get a temporary sense of accomplishment and enhance their self-image. The positive feedback and admiration received from others serve as affirmations of success, hereby reinforcing the way they see themselves.
- Social media: Social media often portrays a lifestyle where material abundance is synonymous with success and happiness. Consequently, people internalize these narratives and then aspire to emulate the perceived lifestyles of the rich and famous.
- Hedonic adaptation: Hedonic adaptation suggests that people quickly adapt to new levels of material comfort, and the initial joy derived from a purchase diminishes over time. This can push people to engage in an unending cycle of consumption, seeking the next new and extravagant experience to maintain a heightened sense of satisfaction.
- Social comparison: Seeing others show their wealth and material possessions on Instagram creates a culture of comparison where people feel the need to “keep up” or even surpass the lifestyles of their peers.
- Emotional fulfilment: Conspicuous consumption is also fueled by the belief that money and luxurious possessions can bring emotional fulfilment and happiness. People see the acquisition of luxury items as a tangible reward for all their hard work or as a means to escape from stress and find joy.
- Perceived quality and exclusivity: Many luxury products are sold on the promise of superior expertise, quality materials, and exclusivity. The appeal of owning items perceived as the epitome of excellence can be a motivating factor in conspicuous consumption. The more exclusive a product is, the more desirable it becomes, as owning it becomes a way for people to distinguish themselves from the masses.
Consequences of Conspicuous Consumption
- Financial strain: Engaging in conspicuous consumption often involves spending beyond your means. You may accumulate debt or deplete your savings to maintain a facade of affluence. This can lead to financial instability, stress, and a reduced capacity to handle unexpected expenses during times of emergencies.
- Psychological stress: The pressure to maintain a certain lifestyle and the constant comparison with others can lead to psychological stress. You may experience anxiety, insecurity, and a fear of falling short of societal expectations, resulting in a negative impact on your mental well-being.
- Loss of authenticity: There is a loss of authenticity as people prioritize external appearances over personal values and genuine interests. The constant need to conform to societal expectations can hinder you from being yourself without fear.
- Overemphasis on materialism: Conspicuous consumption reinforces a culture of materialism, where accumulating possessions is prioritized over other areas of life, such as relationships, personal growth, and even experiences. When the emphasis is fixated on material wealth, it can lead to a shallow and unfulfilling life.
- Impact on well-being: The temporary satisfaction gotten from material possessions does not always lead to happiness, and the constant chase of external validation can leave you feeling unfulfilled.
Conspicuous consumption often leads to spending beyond your means to maintain a facade of affluence.
Breaking the cycle
As people who are keen on building wealth, we must reflect on our consumption habits and question the motivations behind every purchasing decision.
The right question to ask is “Do I need this item?” If your answer is yes, maybe you should ask yourself why.
Developing a mindful approach to consumption requires considering the implications of your choices on your life and financial journey. It also involves having a sense of self-worth that does not depend on material possessions and societal validation.
Ensure you’re prioritizing your well-being over material accumulation.
Conclusion
Conspicuous consumption is a complex part of society, often driven by the desire to stand out. While we cannot deny that flaunting wealth and status is tempting, the consequences of unchecked conspicuous consumption are equally weighty.
Hence, it is important to always engage in self-reflection, and challenge what are considered to be norms that maintain the cycle of excessive materialism.
So, with all you’ve learned from this article about conspicuous consumption, do you think you’re guilty?
ALSO READ
The Psychology of Greed: Why People Pursue Money at Any Cost
8 Truths About Money People Learn Late in Life
How To Battle Lifestyle Inflation
How Emotions Affect Your Investment Decisions
? Great
??
Hello Ope…thanks for your writings…can you come talk to a group on WhatsApp?
I learnt a lot from this. I will put this points into practice soon…
Awesome! Thanks for reading.??
This is an apt reminder. Thank you
??
It was nice write up I learnt alot okay
Great to hear!
Thanks for this. Teaching my kids abot money is a priority to me.
This write-up is good for the week. We meeeuv!!!!
?
This message is a timely one for me, even though I’ve begun practising a few of the aforementioned tips.
It’s a great way to begin the week and it comes at the right time as end of the month approaches.
Thanks guys!
It’s always a delight to receive an email from my favorite financial adviser, Ope, because she always has something relevant, thought provoking and practical to say and offer about my (your) finances.
Truth be told my financial education and wellbeing has improved ever since I joined Cowrywise. Thanks to Ope with her gentle forcefulness. Lol. I am now more savings, budget and investment oriented. Only regret is why I didn’t come across Cowrywise sooner. Where have you been all my life??
I still have a long way to go to make up for lost time but, baby steps.
Uwésè (Thank you in Bini)
Baby steps can lead to much progress!??
Why are you so sure that Ope is female though??
You’re welcome GOC.?
Stale yeahh?
But, I can bet Ope is a female.
I relate so much to your talks. If I’m not learning something new, I’m realizing I’m not the only one who thinks this way ??
Good morning
Pls want logging into my Cowrywise
Is not going mam/sir
Pls help out
You can afford it doesn’t mean you should buy it, is it really necessary? Think!
??
Spending a huge chunk of money on liabilities.
This is a major bad money habit too.
Thanks for sharing it, Ajayi.
Thank you. This is really helpful
Thank you, Ope.
10. Don’t compare yourself with other people.
People often spend money on what is not needed trying to please friends, family and colleagues. To cultivate a good saving habit you have to start living your life as a self-life, not public life. If you don’t have it now does mean you will never have it. Life na turn by turn, go through life at your own pace. Life is sweeter when don’t live to please anybody.
“Life is sweeter when don’t live to please anybody.”
This point on comparing one’s self is such a good point. Thanks for sharing it.
Please I didn’t not received my referred bonus payment to my stash while other people have received their own what is the problems please
This is copacetic.
??
Great job
How do we hack black tax?
Hi Ifeoma.
This blog post on Black Tax might help – https://cowrywise.com/blog/black-tax/
Thanks for golden , professional advice. How can l go about Halal investment plan
Candidly, no 6 is on point. Spending errors are stringent but not in the real sense of it. One is guilty of that. I learnt from all 9 points. Kudos
This is so apt! Ope, you need to address how we can say NO (and not feel quilty) to family issues that are springing up. They are the cause of my savings depleting. *sobs*. Thank you for sharing this. Always love to read from you.
Hi Oyepeju.
Gloria shares how locking up her savings helps her say no without feeling guilty in this article – https://cowrywise.com/blog/chose-cowrywise/
This article on Black Tax might also help – https://cowrywise.com/blog/black-tax/
I hope both help!
Thanks for the education Ope.
You’re welcome, Marv Annie.
This is really the message for the now.
We need to imbibe the culture of savings and inculcate it into our children at a very tender age if possible include the culture into our value system even in our school curriculum.
Very timely piece.
??
This is informative
I’ve learnt a lot. Thanks and keep it up.
??
Insightful !
I needed to be reminded of this very important truth. Thanks alot
Thanks alot Ope, good one.
How can I see my deposit
Hi Henry.
You can see all your Savings/Investment or Stash funds when you log into your Cowrywise profile.
Which specific deposit are you referring to, please?
Timely words
Thanks ope
Thanks for this insight it is a good one and i know it will help me because I have struggle alot on how how to to gain financial freedom.
I appreciate this great information and financial education. It has given me insight into my financial plan. thanks.
This piece will be really helpful. Thank you for sharing Ope
Truth be told,i saw one of my bussiness partner using this app for saving money and I be like WTF am app is this, he then explain to me And I be like wow?then I started using the app, I won’t lie here, my financial life changed immediately for good,how can I thank cowrywise,
Thanks to the organizers?♀?♀
Yeah ope…..that investment part about buying point (ARM Or so)….ion understand….pls could you put me through
Thanks for the charge
This is very great, insightful and helpful.The lessons were very instructive and many salient points to note.Please is there a WhatsApp group cowry wise created or perhaps you did.I would love to join.Thanks so much.
Pls I really need hlpe
Wow, this so encouraging, I think I have to stick to it. Thanks
? rooting for you!
Hi Ope, I want to start emergency savings. What percentage of my income do I save . Been battling with this …
Hi Jesutofunmi.
There’s a guide that breaks it down for you. Here it is – https://cowrywise.com/blog/emergency-funds-savings-work/
Though there’s no one size fits all, it is advised you save up to six months of living expenses.
This is so that if anything ever happens, you’re covered for at least six months!
Thanks Alot Ope.
No 8 really got me.
This is awesome. . Thank you for this insight. I want to know more about the automatic save and invest. Is it that as I make payment in my cowrywise account , it’s automatically save and automatically invest. Please shed more light
I have never been tutored like this all my years. This is exactly my problem but now cowrywise is my deliverer.
?
Thank you cowrywise. You are a true financial saviour
Learnt a lot from those, my bad habit is 2:- spending more than I earn.. The article is really nice.. Thank you Ope.
Thank you Ope, this is insightful I’m definitely going to start breaking this bad habits
Thanks for the piece!!!
In the case of a University student who is yet to start earning or probably earn but not so much.
What advice would you give to the person about Cowrywise and bad money habits
I have learnt a lot. Thank you Ope I’ll start saving better and setting more goals
Energyyyyyy ??
If I thought cowrywise will have a children’s school I could have get admission for them, because it teacher a lot of way out of poverty .I’m very comfortable with cowrywise,God will continue to leaft you up as you’re trying to leaft us up.
??
Thank you cowrywise ?? For clearing bad habits
Anytime ??
Thank you ?? For clearing bad habits
I learnt a lot from this. Thank you?
I semt money into my account I have not seen it what’s the problem
Hello Daniel, I’m sorry about that. Please has this been rectified now? If not, please send us an email at support@cowrywise.com. Looking forward to help ?
Nice one ope. Kinda like cowrywise now. Pray it blossoms more. I’m actually a student. 100 level but I have big dreams ahead. No income though but I’m saving from my allowance. Don’t know and still thinking of the possible best income. I don’t wanna go into fraud. But I’ll make it someway. I believe. Thanks for the piece of advise
I’m rooting for you and all your (legal) money moves ???
10. Impulse Buying : Don’t buy anything you don’t plan for especially all those Pre order shoes , Bags , dresses we buy online, we might think it is ‘awoof’ but something you don’t plan for still doesn’t worth buying at all.let’s make plans and put a stop to impulse purchase.
Thank you Ope for all tips.
Financial intelligence, is the ability to control ones expenses. Do spend your money in asset than lability. For asset, are those things that puts money in our pocket and labilities are those that takes money out of our pocket. Thanks to you all.
All this are great write up thank you Ope!
I uses PiggyVest but I don’t know how to use the investment features of this Cowrywise app.
A guide will be so much appreciated by me?
I understand my mistake and I’m very thankful for reminding me!
@ope thank you very much for this piece. Just started using this app but kinda like it.
Just that i don’t know how to use the investment plan
Hmm! What an eye opener. Thanks
Sure!
How can I get loan to enjoy this business because me I don’t understand I can place orders app
I have just been tutored by you, I hope to be financially wiser henceforth.
Good advice
Great advice. Thanks for this. People also need to stop spending immediately an dime enters their pocket.
Great advice. Thanks for this. People also need to stop spending immediately an dime enters their pocket.
Wow, thank you for the advice.
Thanks doesn’t seem enough to express how I feel right now. Just know am deeply grateful. God bless you Ope. Am taking baby steps already!
What an eye opener…. More grace Open.
Wow!! I love this write up…I really learnt a lot from it
Thank you Ope for this wonderful reminder. I’m sure to put them into practice ASAP
I’ll recommend the book rich Dad poor dad by Robert kiyosaki. Most of the bad Money habits listed in the article above, was derived from this book. You will find more of bad money mistakes you should avoid in the book written by Robert.
Great
This is just a trick of wooing you to save your money with them. Saving money has never made anyone grow. The risk inherent in Saving is very low, therefore, you earn low return. Saving is not a good investment, channel your money into a productive venture where high returns can be earned.
Ask them for how much interest they will pay on your savings, I can bet it with anyone, it won’t be more than 10% per annum, however, if you are taking loan from, you’ll be deceived with single digit interest rate. E.g 3% flat, which is equivalent to almost 36% per annum. Arithmetically, they will make over 26% on your hard earned money you’re saving with them. My people, please be wise and shine your eyes. These people are just ripping you off. Use your money for productive business venture, you will earn higher returns from it. However, the risk is very high. As I said earlier, high risk begets high returns, while low risk ventures earn low returns.
Thanks for this
Thank you very much