The simplest description of the Diderot Effect is this: “The introduction of a new possession into a consumer’s existence will often result in a process of spiraling consumption.”
What does this mean? You buy a new car and now you need a new tint job, new rims, a new phone charging cable, new sunshades, etc. That one purchase has resulted in a multitude of purchases that before the initial purchase, were not even on your radar.
The Diderot Effect is a VERY common spending phenomenon that nearly everyone falls victim too. In this episode, Coach Jill gives examples of how the Diderot Effect might be showing up and she also gives you 7 tips to help you reduce its financial impact.
Coach Jill’s 7 tips to reduce the Diderot Effect
- Awareness is key.
- Imagine how the new item will fit in with the rest of your life.
- Limit temptations.
- Look for opportunities to borrow, trade, or rent before you buy.
- Always budget for MORE than you anticipate needing.
- Set Limits/Pace yourself.
- Make linear purchases if possible.
- Use the app Unroll.me to help you easily unenroll in all of the emails you receive and limit temptation.
- Read the book: Atomic Habits by James Clear, where he talks more about the Diderot Effect, along with so many other wonderful tips on how to build or break habits.
- Blog post: Spending Triggers: Why They Happen and How to Identify Yours
- Blog post: Get more out of life when you’re not spending money on these 5 thing