"It is very easy to spend your entire amount of money within a day while it is relatively hard to live economically and save what is left after paying for the necessity"
Basic concept of economics gives you an answer why most people cannot save. Law of demand is applied here. The first thing you should know is the price of rationally economical living. If you live economically or you pay nothing for luxury or unnecessary goods, for example, an exorbitant dinner or new launched dress, you may lose your good image or have to swallow your pride. Thus, the price of being thrifty people is compensated with self behavior. People nowadays try at their utmost to look good and have a perfect picture so as to gorgeously stand in society. They want to be someone in the community. There are many people willing to get into debt by using credit card for buying beautiful pants or shoes and enjoying the five star restaurant. It is the way of presenting their taste. Unfortunately, some pretend to love something to create their perfect looks.
To sacrifice this pride is costly. However, the price of this "good" is different. Here, market is society. Different society sets a different price. The price of economical living is higher when the norm of society is perfectionist or people live in more capitalized community (people try all time to sustain their voice). The price of economical living is lower when the norm of society is more casual or people live in less capitalized community or may be agricultural-based country (people think they are indifferent). From economic theory, when the price of goods increases, the quantity demanded gets decreased, and vice versa. In this view, when the price of thriftiness increases, people do not want to live economically. People save less because they want to show that their life is perfect instead of talking about future's prosperity. When the price of thriftiness decreases - it means that other people really don't care who are you, people think that it is waste to spend a lot of money to make a good picture and they start spending rationally.
|Each individual exposes his or her own demand|
Hence, the norm of society is an important factor in determining the pattern of citizen's life. And of course, they are free to live among various types of society. Or you can save more if you think more about yourself and think less to others.
By Wannaphong Durongkaveroj (May 2014)