Emotional Buying

I recently attending a church fundraising auction which was an enormous success. Considering that $$ and purchases were involved, the evening gave me some food for thought about how people buy things. The auctioneer was very talented and humorous and made the evening enjoyable for everyone. His performance, along with the fact that the bidding got a bit competitive all led to the success of the evening. The upbeat emotions of the evening led people to have fun and spend money. I have been involved in several charity auctions and this is often the case.

So how does this relate to our everyday and not so routine purchasing decisions? We often head into a store to buy something and come out with something else or more than we intended to buy. Our mood and the presentation of the store affect our purchasing behavior. This might be common sense to most, but it is often forgotten, especially when larger purchases are involved.

As a financial planner and as a rational consumer, I try to have a plan in place before I am in a situation to spend money. This doesn't always work and isn't always necessary with small, insignificant purchases, but is recommended behavior for the big decisions in life. Next time you are choosing a home, car or large appliance, keep this in mind. I would also recommend a plan or a referral in choosing important services providers, like doctors, dentists, financial advisors and the like.