Beware of the Low-cost High-frequency Consumption Trap

The term "low-cost high-frequency consumption trap" is coined by me. It's just like boiling a frog in warm water.

Low prices are like warm water, while high prices are like boiling water.

If you're asked to buy a product worth thousands or even tens of thousands of dollars, you'll probably hesitate for a long time, and this consumption will leave a mark in your mind. But what if it's just $10 or $20? Chances are you'll just spend it without even remembering.

Spending an extra $20 every day adds up to $600 a month and $7,200 a year, which can buy you 2 - 3 Android phones.

What can $20 buy? Maybe it's a cup of milk tea you suddenly crave today, some fruits, a barbecue, or a meal with colleagues.

Spending an extra $20 is just a conservative estimate. It's easy to spend between $20 and $40.

Similarly, in the field of knowledge payment, when you see a group membership for just $9.9 or $19.9, you buy it.

You send red envelopes in the groups, $10 per group. If you join 30 groups this month, you'll spend $300 on red envelopes.

When group companionship and paid newsletters became popular, it's quite normal to spend hundreds of dollars on red envelopes in a month, and sometimes it's even not enough.

After a month or a few months, you suddenly realize that you don't seem to have bought any expensive courses or made large payments, like enrolling in a training camp or hiring a personal coach that costs thousands of dollars.

But why do you have no money left or why is your expenditure so high?

The reason is that you have too many small and scattered expenses. Each expense may only be $10, $20, or $30, but there are several such expenses almost every week, or even every day.

Just like boiling a frog in warm water, this is one of the reasons why young people find it hard to save money. There are too many places or high frequencies to spend money.

We're so used to spending money on services and things that we rarely think about whether we really need them or if there are other alternative ways.

Of course, it doesn't mean that we shouldn't spend money. But from a practical point of view, some money may be wasted or over - spent.

This is a common situation. For example, when young people are in a relationship, neither of them buys expensive things, gives precious gifts, or goes to high - end restaurants, but they still feel that all their money is gone.

Because when it comes to dating, all the scenarios we think of are related to consumption, and it's rare to think of scenarios related to production.

Dating will increase the frequency of consumption. Even if you maintain the same level of consumption as when you're alone, the total monthly consumption will increase significantly because the frequency has gone up.

Is there a solution to this situation?

Yes, we'll discuss it in two cases: one person and multiple people.

One - person situation:

1. Keep a manual record of your expenses.
2. Set a monthly spending limit.
3. Set a monthly savings target.
4. Make an expenditure plan based on the data of the past 2 - 3 months.
5. Check every day if you've exceeded your budget.

Multiple - person situation:

1. Align your goals and set common targets.
2. Look for production - related scenarios.

The other steps are the same as in the one - person situation.

In a multiple - person situation, you must have a common goal. Otherwise, if one person moves forward while the other holds back, it won't last long.

Production - related scenarios are more valuable. The value lies not only in reducing consumption but also in strengthening the relationship.

Working together on a business will give you many common topics and encourage each other's growth and progress.

Of course, finding these common production scenarios also depends on the situation. Some people don't want to make money during their rest time.

So it doesn't necessarily mean making money directly. It can also be reading, learning a skill, etc., something that's not purely about consumption.

For ordinary people, the first sum of money is saved. Here, "saving" doesn't mean living frugally. It means reducing the frequency of consumption while ensuring a normal life.

Only by saving some money in daily life can you have the opportunity to earn your first sum of money and invest in yourself. Spending on entertainment has nothing to do with investing in yourself.

How much do you spend every day? Is the frequency high? What expenses are unnecessary?

Xiaolu Daily Reading and Writing 2025.05.06【day610】