The Financial Inelasticity We Attain, In A Bid To Spend Wholesomely.
January is usually a month of consciousness reevaluation because this is when the reality of one's financial situation begins to dawn or get clearer. Why is this? Most people are subconscious spenders in December and this is because this is mostly one month where people throw in the towel and go against all their financial principles.
The reason for this is that December is generally a celebratory month, so even people who hardly celebrate Christmas would still find themselves relaxing their financial standards and principles just to enjoy the thrill of working and saving from January to November. People who are retailers in countries where there are no price regulations are always trigger-happy
Scarcity & Price Regulation
This means that price is always like a trigger to them, they pump it by generally studying the mood of people. Because a lot of people want to have fun and relax with their families during Christmas, they're generally met with slightly inflated prices.
Apart from the fact that excessive demand can drive the price of goods and services during festivities, retailers tend to add their increase too and blame it all on the general demand and scarcity that ensues. For example, the price of some goods and services in Nigeria will be inelastic and two of those products are rice and petrol. These are the two most sought goods and services.
There are mad millions to be made
This is because people would travel at all costs, hence the price Inelasticity, then people would eat rice at all costs. However, the way people demand for these commodities, makes marketers and retailers plus other middlemen trigger-free.
So they capitalize on excessive demand to create artificial scarcity and when this scarcity hits a particular apex, they then begin to hoard this produce at their disposal to make the money they want. December is generally a competitive month, and a lot of people subconsciously slot themselves into the competition.
The Cultural Need To Flex Financial Muscles
The cultural need to enjoy the good life during December makes people go against all their financial ethics and principles because it's just a few days or weeks. However, this post is not to begrudge this economic phenomenon, it's generally the way our mental anatomy operates, and this is often imbued into us, especially with the methodology of how we earn.
People who work 9 to 5 for example are always looking for the right escape to spend some of their money either on a holiday or a break. Because they mostly work to take care of essential needs, a time comes in their lives when they realize they're not living for themselves, hence, they'll take every opportunity or break they have to enjoy their lives to the fullest.
December become that perfect opportunity.
Don't get me wrong
.......the essence of earning money becomes realistically beautiful when we can bask in our capacity to spend on our outermost desires. Some people do not derive happiness from their jobs, but the prospective fulfillment of being with their family, and spending money to make them happy is what keeps them in the job.
These types of people are the ones who make sure they take advantage of every holiday to enjoy the fulfillment of spending, hence it wouldn't really matter to them if the prices are inflated, or if the Market forces are creating scarcity for their own materialistic gains, they just want to spend whatever it takes to enjoy the season, hence, Inelasticity originates from the retailer and embraced without question by the end-consumer.
An Interesting Point of View
People must want or crave or create competition before Inelasticity can be derived to a certain extent. Market forces are cushioned by demand and supply, and this is true because of the demand power of the end-consumer, but sometimes, the end-consumer underestimates they determine the control they have. In essence, everyone generally relaxes their mental accounting during December, because in reality, the essence of making money is gotten from its spending.
A Boundary & A Conscious Disposition
Sometimes, they (people) get themselves into overkill situations, overdo it and plunge themselves into precarious financial situations. This is why it's important to spend within one's means, create a boundary, and imagine an invisible line of incursion that we shouldn't breach irrespective of the shift in our emotional state in the attempt to make the most of a certain period to enjoy the resources we've garnered.
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