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Are you one of those people who run out of money at the end of the month? Managing your finances is an art that not many have mastered. Far too often we spend money on unnecessary things. A certain effect is decisive for this.

An example: you recently bought a brand new, trendy top. The problem: It doesn't match any trousers. So you go shopping again and spend money again, this time for the right pants. And while you're at it, you buy new shoes and a matching jacket to make your outfit perfect.

spiral of consumption

The Diderot effect is behind this consumer behavior. Denis Diderot was a French writer in the 18th century. His life changed abruptly in 1765 when he became wealthy. Before that he lived more or less in poverty. But when Catherine the Great bought his personal book collection, Diderot suddenly had money.

From this he bought an expensive, beautiful, scarlet dressing gown. This was so noble that suddenly there was no connection to his other possessions. He was overcome by the compulsion to buy more and more things worthy of his new garment.

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He exchanged his old carpet for one from Damascus. He also acquired a new desk to match, as well as a gilded pendulum clock and a large mirror over the fireplace. In 1768 the essay was published with the title "Reasons to mourn for my old house coat, or: A warning to all those who have more taste than money".

The Diderot Effect describes how people become compulsive after buying an item and thus further buyers to create a suitable overall picture. The acquisition of a single new item often triggers an avalanche of almost compulsive buying frenzy in the consumer.

The term is often used in advertising psychology. The chain reaction is triggered because the new product disturbs the harmonious overall picture in the customer's imagination and instinctively forces him to correct it, says social scientist Grant McCracken. The Diderot effect places the buyer in a hopeless compulsion to consume, but a coherent "final image" can never be achieved.

Diderot laments in his essay that he had replaced his old dressing gown: "Why didn't I keep it? It suited me, I suited him. My old housecoat and all the junk I used to set myself up with – how well they fit one to the other." But with some strategies you can counteract the effect preventively.

Avoid buying frenzy impulses

The first step before you buy it is to think about whether the new “thing” fits into your life at all. This is especially true for clothing or furniture. When you buy a new dining table, you should ask yourself whether your armchairs will also match.

Also avoid impulses that can trigger a consumption spiral. Specifically, such triggers are always found when shopping online. On Amazon, Zalando & Co. products are always suggested to you that you could buy. So better keep your hands off it. Also, realize that your material possessions never define you.

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