Rich People Are Satisfiers, Not Optimizers
You don’t need to always strive for the best and most perfect outcomes
We want to get the most out of every penny we spend. But this focus on optimizing things can sometimes work against us.
That’s why loyalty programs and “free” marketing schemes are so effective.
If you’re an above-average earner, for example, and you have an airline-branded credit card in your wallet, you’re likely spending more than you really need. Marketers encourage people to spend more so they can “take advantage” of their cards’ miles.
Bloomberg reported that airlines make more money selling miles than seats. For every mile a person earns, the airline pockets anywhere between 1.5 cents to 2.5 cents. That’s billions of dollars earned from all those people swiping their cards at cafes, clothing shops, and the like.
Meanwhile, average earners who want to maximize every spend are common targets of mass-market retail stores and groceries:
- These shops and marketers use smaller packaging to make you buy bigger
- They arrange the store aisles in a confusing manner to wear you down and encourage impulse buying
- They offer “free treats” and “bulk bargains” to make you buy stuff you didn’t even intend to get in the first place
- Online shopping sites also offer a certain discount off your purchase for a minimum spend.
These schemes are designed to bring out the consumer out of everyone.
Consumerism is deeply ingrained in our society. Just look at your email or browse your social media and you will see all sorts of things being sold to you.
How do we get away from the pull of being a consumer?
Do it small, but in the right direction
We can compare building wealth to creating a healthier and fitter self.
When trying to live a healthier lifestyle, most people often have ambitious goals: Get 6-pack abs in X days, or buy all sorts of gym equipment only to use it thrice.