Dealing with upgraditis to save your hard-earned money

There are times when you feel like you need or deserve a lifestyle upgrade.

Take a new phone, for example. You buy it. But then you think it needs a protective case—okay, that’s fair. But then you feel like it still needs a stand or a phone ring. And then a bluetooth headset. And fisheye lens. And whatever else that could be an “upgrade,” which is always going to be an additional cost.

This is upgraditis.

The spiral of consumption

It’s unfortunately common for people to buy things they don’t really need. But why?

The Diderot effect has an answer for you. 

To give a little background, French philosopher Denis Diderot lived in poverty for most of his life, until he made a great sale. He used his money to buy a new robe. But because it didn’t work with anything else he owned, he decided to buy more things.

In his essay “Regrets for my Old Dressing Gown, or A warning to those who have more taste than fortune” he said:

“My old robe was one with the other rags that surrounded me… Between these prints three or four suspended plasters formed, along with my old robe, the most harmonious indigence.

All is now discordant. No more coordination, no more unity, no more beauty.”

He kept buying more things—new rug, mirror, table, chair, and sculptures just so things wouldn’t be out of place. This is the Diderot effect, which states that when we buy something new, it creates a “spiral of consumption” and we end up making unnecessary purchases to feel fulfilled. 

It doesn’t help that we often compare our lifestyles and possessions to those whose income and status are three, four, or five times our own. This only causes us to spend more on expensive things to upgrade what we own and our social status as well.

Upgraditis is the Diderot effect, and we know it can lead to excessive spending. But how are we supposed to combat it?

The importance of financial literacy

Acknowledging our spending behavior and being conscious of what we buy is a step towards curing upgraditis. We get a better look at what we’re doing when we shop and we get a better sense of why we shop. This awareness can be brought about by educating ourselves about the proper way to spend, save and invest our money. You can learn about this thru the financial literacy articles here. 

While being aware of your own behavior is helpful, it might not always work in reducing how much and how often you spend because we all have our own biases. It’s also important to have others help you. Friends, family, and especially a financial advisor can review the way you spend objectively and tell you what you need to change. They can help you identify unnecessary expenses and set financial goals. A financial advisor, in particular, can even guide you on how you can invest your money so it can grow.  

It’s not going to be easy, considering how we don’t always notice that we’re already “sick” with upgraditis. We’re so caught up in raising the value of our lives through our purchases. But with proper financial guidance and commitment to learning financial literacy, you can get over these compulsions to spend and finally get on track towards your own financial independence.

 

Count on Pru Life UK to help you protect your future and plan your finances so you can live your best life!

Follow us on Facebook, Instagram, X, LinkedIn, TikTok, and YouTube and learn more about how you can ensure that your family's future is secure by managing your finances and growing your wealth.

Want financial advice? Schedule a meeting with us or talk to a Pru Life UK agent today. You can also browse our protection, health, investment-linked, and accident insurance products or visit PRUShoppe, where you can conveniently buy insurance online.