The Small Prices Americans Are Unwilling To Pay To Avoid Disaster Later
Written by Kyle Mayers
July 16, 2018 |
In computer programming, there is a practice of work referred to as test driven development. This methodology calls for the computer programmer to think in terms of the tests that will later validate the accuracy of the computer code as an initial action, rather than as validation once the programming is complete.
Writing tests first requires a shift in thinking. It seems like a step backward in a time to market sense...after all, the developer is not building the solution first, but is instead building the test. And initially, the test will fail. The tests will continue to fail during the development cycle until sufficient software code has been written to make them pass. Viewing constant test failures for potentially days on end can have the effect of demotivating the computer programmer.
But test driven development has been proven effective, on average shortening time to market cycles by 17%. The resulting product quality, while difficult to quantify, is at least governed by some level of proven testing. And building or extending existing software code is eased by the fact that new code should still result in old tests passing.
Personal finances have their test driven development equivalents. These habits include anything that force you - as a consumer - to validate your spending prior to making it. Too often consumers are left with buyers remorse after an impulse purchase, and much of a retail store is set up to take advantage of you in this way. Sales funnels, discounting ploys, loyalty cards and even merchandise presented at the check-out counter all aim to encourage you to spend more, and in particular, to spend without scrutinizing if the purchase is actually worth making.
So How Can You Defend Yourself?
When it comes to the trappings of retail, one of the obvious alternatives is to shop online. And while there is no question Amazon wants your money as much as the next guy, at least Amazon presents the same consistent purchasing experience for all of their products.
When you shop in retails stores, each will use their own slight variation in attempting to part you from your cash. Some will use sales funnels, others loyalty cards. And even if you don't get suckered at one location, you may at another. Retail stores cater their advertising, displays and even their colors to appeal to specific demographics. It may be the two stores side by side have nearly identical products, but you will only purchase from one of them because you happen to appreciate their presentation. Well, its no mistake you fell for it: retail stores know they must make a choice, and you fit a profile of a consumer they wanted to target.
TDD Approach: Try to reduce your spending by forcing yourself to shop online.
Monitor The Meta Moment
The moment you find yourself justifying a purchase for meta reasons, you need to be aware that you've been taken. Meta refers to purchasing rational that has nothing to do with the product or the utility it provides. In nearly 100% of the purchases you make, an enormous meta consideration is brand name.
If you choose a brand name product over a generic name - purely because you have some sense that the brand name is better, you need to catch yourself and truly ask why you think that way. Odds are fantastic that you are the victim of advertising. To combat this, try the generic version next time and see if you notice the difference. The result in your grocery bill could literally be over $100.00 per shop if you replace costly brand name food products with generic alternatives.
TDD Approach: Try generic brands and use facts to determine if name brands are actually worth paying a premium.
Talent Before Equipment
I once went to a golf driving range with my boss. My boss was a nice guy, but competitive, and had a streak in him that seemed a little arrogant at times. We swung at a few balls when the golf pro came over to us and asked if we'd like some tips on how to improve our swing.
He pulled his club up to the tee and smacked it probably 100 yards further than any of our balls. "You know this range so that's why you're able to hit the ball so far" my boss griped. The golf pro, obviously not expecting to get chastised after providing free advice to us, didn't really know how to respond. He laughed in a good-natured way, probably a reaction to spending years dealing with arrogant men at the golf range.
"You probably would never hit the ball that far if you were using rental clubs". The golf pro explained that although clubs play a role in the game, the real key is in your skills. He borrowed my rental club and approached the ball. He swung again, this time with the same techniques, same timing, same power. And, not all that surprisingly, hit the ball about as far as he had previously.
I could see my boss grinning and gritting his teeth at the same time. I think he wanted a way out of the situation so as to not be embarrassed, but was in deep enough that he couldn't concede to the golf pro without one more jab. "Sure sure, that's all fine and dandy, but let's see you do that again with my club." The thing was, the golf pro was a right handed shot and my boss was let handed. So the golf pro took my boss's club, rotated it so that the club was pointing down toward the ground, and exposing only the tip of the club to possibly strike the ball.
He lined up, and swung using - yet again - the same technique, the same power. And although it was hard to believe, he actually struck the ball on the tiny area of exposed club face, sending it to virtually the same spot as the other two golf balls. It was an incredible spectacle. I actually started clapping...I literally could not believe my eyes.
The point of that whole long winded story was to point out that it is the talent and discipline that goes into a golf swing that makes all the difference, not the club. In fact, with enough talent, even a wrong-handed club is sufficient to hit a ball further than most casual golfers. I'm sure that golf pro's talents were on the extreme end of high talent players, but even weekend players owe it to themselves to invest their time in practice and technique before they invest in new equipment. And the absolutely last thing golfers should do when they can't hit the ball far enough is to buy new clubs. The problem with your swing is almost always between your ears.
TDD Approach: Before buying equipment, take lessons, practice or persevere with your old equipment until you have forced yourself to improve. Equipment helps good athletes become elite: it does not transform people without talent into pros.
Summary
When it comes to your spending, do what many computer programmers do: put up a validation test first, then conform your spending behavior to pass the test. Use the constraint of online shopping to help reduce or eliminate the traps retailers use to help convince you to make impulse purchase you are sure to regret. Buy generic brands - especially at the grocery store - and only upgrade to a name brand if you can prove there is a difference. Never let your purchasing decision stem from an assumption of trust of a name brand: that trust is based on nothing more than your being hypnotized by advertising. Finally, never let yourself spend money on equipment that should be preceded by an investment of time on grooming your talent. Even if new equipment improves your game, it will be a hollow victory due to the increased cost you could have avoided by developing the talent yourself.
Do you have little tests you use to help prevent yourself from making poor spending choices? What are those tess and how have the impacted your spending and savings habits?