Snowed under yet still spending? Here’s why (and how) to shore up a budget

Snowed under yet still spending? Here’s why (and how) to shore up a budget

Regardless of how well you usually stick to your budget, chances are you’ve experienced a moment of weakness. Whether that moment consisted of giving into temptation while window-shopping or was made despite knowing the consequences, this can harm your long-term financial outlook.

You may have meant well but, in the heat of the moment, things changed. A quick trip to the shops for a single necessary item can turn into a budget-busting spree. One small purchase becomes two, and suddenly you’re rationalising your decision to keep spending money

If this sounds familiar, you are not alone. Shopping in retail stores under the glitter of bright lights can make you fall into an almost trance-like state. Conditions in these stores make buying the things you want (but don’t need) addictive and hard to control.

Even with the best of intentions, spending can snowball.

Opening Pandora’s box
Snowball spending is when one small purchase lends itself to a second, third, and potentially even more. Each purchase becomes that much more attractive, making it harder to say no.

If you’re spending above your budget, the brain can view shopping just like other addictions – a “forbidden” behaviour that gets all the more attractive the longer you go without. Just as the brain learns to feel good knowing when the next cup of coffee is on the way, it trains itself to release a small dose of feel-good hormones when a purchase is on the way.

Saying no to an unnecessary purchase can be challenging. Your mind fights with itself over what’s more important, sticking to your budget or getting that jolt of feel-good hormones.

You may even find yourself debating internally: “After all, I’ve already spent some money, what’s the harm in spending a little more?”

In psychology, the thought process known as moral licensing involves rationalising small things like skipping your diet when you’re out with friends if you ate healthier earlier in the week. Snowball spending, on the other hand, doesn’t come with the luxury of healthy behaviour occurring prior to it. Instead, it’s just the opposite (“un-moral” licensing, if you will).

You might tell yourself that buying a second item is acceptable because you already spent some money today, but in reality, if you cannot afford it, it is far from OK.

Stop that snowball roll
The first thing you must do in this situation is separate yourself from the temptation. Removing yourself from the environment makes it that much harder to rationalise additional purchases.

Another tactic is to set the agenda for the day early on.

When heading to the shops to purchase a necessary item, remind yourself that your aim is a specific goal, not a general “treat yourself” experience. If all else fails, set realistic limits on your spending beforehand; this may be your last line of defence if you cannot avoid temptation altogether.

It’s easy to set a few barriers – for instance, by setting a mobile app to alert you when you approach a chosen limit, or by leaving your plastic cards at home when you go out (only taking a prescribed amount of cash).

Snowball spending is a growing problem, often only recognised once the dust settles and the receipts pile up. So next time you find your purchases snowballing, pump those brakes, and stay on course.

Value-Signaling in Packaging Design

Value-Signaling in Packaging Design

This article originally appeared on brandingtimes.com 

If people ceased to be influenced by brands, brands wouldn’t exist. Beyond catalysts for change and innovation, brands represent a lot more than meets the eye, including cultural symbols, claims of trust, and desire.

We are immersed in brands. If one ever questions how prominent brands are in our daily lives, think about two of the world’s most powerful brands (arguably): Velcro and Kleenex.

Everyday, people around the world use these products and refer to them by their brand names. The brand name, “Velcro”, is the official product’s name for hook and loop tape. The same is true for Kleenex (facial tissue anyone?). Well-established brand names have become synonymous with the generic product and stand for something that extends far beyond the functional benefits of the product.

When brand names are eliminated from product packaging and displayed generically, a consumer may lose the trust built up with a well-known brand. A consumer might be dissuaded from purchasing the generic product over the branded competition. Brands such as Velcro established and invested in building confidence to showcase dependability- a signal of the brand’s values. This is a reason that trusted brands are able to charge significantly higher prices for the same generic products.

In addition to the trust that brands build between their product and the consumer, they also serve another purpose that consumers ignore, but is noticed (consciously or not) by everyone else.

Consumer culture theory suggests that consumers see themselves in the brands they purchase. These purchases reflect who they are on an individual level. The act of buying products with a well-known brand name is driven in part by conscious factors such as the price/quality tradeoff; including the rationalization of how it would make their lives better, and another part that represents an often unconscious behavior known as social value signaling.

Social value signaling involves engaging in a particular behavior to demonstrate one’s personal values to others. Humans are social creatures and appreciate being part of the “in-crowd” at all times. Being a part of a larger social group provides an overarching sense of comfort and security that is desperately craved. People love to find something in common with others. Humans crave meeting those similar to themselves.

Rooted in the field of behavioral economics, the power of leveraging social value signaling to create a competitive advantage is wide spread. When leveraged in the marketing domain, this technique is used to increase product sales by tapping into the universal truths that guide consumer behavior. By creating products with external packaging that signal social values, products play a broader role in consumer life and reflect who these buyers are and what they intrinsically believe.

There are three consumer packaged goods (CPG) companies that are at the forefront of creating bold packaging designs that empower consumers to exhibit their values to others when purchased:

1) Boxed Water

When people typically think of packaged water, un-eco-friendly plastic often comes to mind. Boxed Water, a premium water brand, disrupts this norm by using biodegradable cardboard boxes to reduce the amount of plastic waste when discarded after use.

What makes Boxed-Water stand out is its bold use of the phrase “Boxed Water is Better,” placed centrally on the packaging. This ideal placement on the front panel ensures that when the water is consumed in public, the drinker is making a social values statement. Boxed Water did not place the tag line inside the cap where only the consumer would see it. Their forward-facing statement is purposeful in its convictions.

2) Beyond Meat

What people consume or purchase in public settings has the power to signal deep-seated values to others. Beyond Meat is a plant-based meat substitute company that designs its product exteriors to resemble traditional butcher packages. The core promise to consumers is showcased in a larger font on the box.

Owning the phrase “beyond” in their brand marketing and packaging designs signals far-reaching, advanced values that represent a healthier lifestyle supported by innovative food solutions such as the ones they offer. Plainly packaged veggie burgers by Beyond Meat’s competitors cannot signal the values that Beyond embodies.

3) Leafs by Snoop

The number of American states decriminalizing the sale of cannabis paved the way for companies to tap into the growing (pun not intended) marijuana market. Leafs by Snoop is the brainchild startup founded by Hip-Hop artist Snoop Dog, who was determined to elevate the positioning of consumable marijuana products. Leafs’ packaging takes the traditional 5-point plant imagery and elevates the design aesthetic by using embossed colors of gold and various other shades. This packaging design makes a bold statement: this product is not your “Grandparent’s’” variety of marijuana; instead, it represents the new guard of consumers that value premium experiences and a range of products.

The drivers behind the purchase of these products extend well beyond their functional benefits. Bold, statement-making package designs enable consumers to signal many things ranging from their eco- or health-conscious values to their receptivity to traditionally taboo subjects. All of the packaging designs mentioned above share unmistakable commonality: the causes they support and the brand values that they embody.

To rise to the level of mass appeal, products must stand for something that matters to those who purchase them. Consumers already buy items because those products reflect their personal values. Brands can make it easier for consumers to express themselves in their purchases by formulating their packaging designs to make value-signaling statements.

Demonstrating a brand’s value through its product packaging creates an additional level of demand for the product that isn’t accomplished solely with traditional product marketing. Tapping into this deeper level of consumer insight with eye-catching package designs will captivate a consumers’ attention toward the product as a reflection that the brand stands for something beyond its functional use.