The Cost of Status
Do you ever ask yourself why you spend money on x thing? We often buy something because we want it, but why do we want it? It’s the reason behind the reason. It’s not atypical to have multiple reasons to buy something, needs and wants alike. Regardless, it’s important to recognize our true motives. When we do, we make better choices for better reasons. Let’s use a recent real-life example I encountered. Someone wanted to buy a truck. Here’s the breakdown:
They NEED a different vehicle because their current one is on its last legs.
They NEED a truck to facilitate the various hauling and transport needs in their life/work.
They WANT a bigger truck so they can further expand their hauling capabilities.
They WANT fancy bells and whistles…… because they like fancy bells and whistles.
All this is making sense so far, but there was one more component missing from the list. It was the elephant in the room, which needed to be called out. Despite all the reasons listed above, this missing factor was the biggest emotional driver of the bunch, as well as the one that had the largest impact on the price tag:
They WANT people to know they are successful.
There’s another name for this: status. Whether it’s consciously or subconsciously done, most of us do certain things in pursuit of status. The brands we wear, the restaurants we dine at, the neighborhoods we live in, the places we travel, the schools we choose, the organizations we belong to……this list keeps going. This particular person cared a LOT about driving a new, top-end model because it was a signal to others that they are successful. This one nuance alone has the potential to drive the price up by $20,000-$30,000.
I’ve worked with many people who spend thousands of dollars per month in the pursuit of status. My job is not to judge them, but rather ask them a few questions:
Is that what you really want?
Is it worth it?
Is there something you’d rather spend this money on?
When we name it head-on and people are real with themselves, most people relent and make different decisions. Some, however, are more than happy to spend on status. Not my personal cup of tea, as I believe bought status moves us away from genuine meaning and fulfillment. But at least they can call a spade a spade. Eyes wide open, properly understanding the why behind the why.
What about you? In what ways do you find yourself consciously or subconsciously buying status?