"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"
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| Photo source: http://saveup.com |
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.
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| 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)
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