The Diderot effect: What it is and how it can lead to financial ruin

It's a feeling all too familiar: that spiral of consumerism that sometimes takes hold of us and keeps us buying things we don't need, sometimes even causing financial problems.

This phenomenon has been studied since the 18th century and is named the Diderot effect, in honor of the French Enlightenment encyclopedist, philosopher, and writer Denis Diderot (1713-1784). The term was coined in the 1980s by Canadian anthropologist Grant McCracken.

Denis Diderot perfectly described it in his essay 'Regrets on Parting with My Old Dressing Gown.' In the essay, he describes how the gift of a beautiful new red dressing gown nearly led him to financial ruin.

Specifically, he describes how the new garment was so wonderful and of such quality that everything else he owned paled in comparison. This led him to buy other items, such as paintings, furniture, curtains, and rugs, to ensure his treasured robe matched the rest of his home's decor.

Indeed, the arrival of this new scarlet robe led him to change the entire decoration of his house and, worse, drove him into financial ruin, leaving him uncomfortable even in his own home.

"I was absolute master of my old dressing gown", Diderot wrote, "but I have become a slave to my new one … Beware of the contamination of sudden wealth. The poor man may take his ease without thinking of appearances, but the rich man is always under a strain."

Despite the three centuries that separate us from Diderot, this trend continues in the present day... and perhaps its even more widespread.

Who hasn't walked into a store intending to buy just one item but ended up purchasing a complete outfit? Or planned a small home renovation only to end up remodeling the entire house?

This happens because we tend to associate objects with each other, perceiving them as a whole and seeking a harmonious and balanced relationship among them.

Businesses are aware of this, and it's increasingly common for cross-selling to be encouraged, a practice seen both in physical stores and e-commerce platforms, with recommendations related to the product we have just purchased.

Online shopping complicates things further, as everything is designed to be just a "click" away, at any time of the day or week.

So, what can be done to avoid falling into this trap? First, be aware of the problem. Understanding how it works gives us more tools and determination to face it.

It's also important to clearly understand our real needs; those that led us to make a specific purchase.

A good technique is to wait a few days before making a purchase, whenever circumstances allow. Let time pass and proceed with the purchase only if it still seems like a good idea after this period.

Another strategy is to buy items that complement what we already own. This could even promote second-hand purchases, a trend that is currently on the rise and is good for both one's pocketbook and the Earth as a whole.

However, the most important thing is always to spend within your means and avoid going into debt for items you don't need.

In the words of American businessman and investor Warren Buffet: "Do not save what is left after spending, but spend what is left after saving."

To avoid compulsive and irrational consumerism, the best approach, as obvious as it may seem, is to shop sensibly and keep a good distance from your credit card.

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