Why do people spend money they don't have?
UAE residents are famous for spending money they don't have. Buying on credit is as normal as going to the grocery stores everyday.
What is driven this need to do this? Feeling good is the first reason why UAE residents do this. It's called retail therapy and it's a psychological effect. When people buy things it makes them feel happier.
The second reason is to keep up. This social factor is driven by the need to fit in with others. Let's be honest, most people are followers not leaders. People that are insecure are more likely to feel the need to fit in.
The third reason is that in the UAE it's very easy to get credit. By making it easy for people to borrow, you increase the likely hood that people will do this.
The last reason is ignorance. UAE residents don't always know what they are spending and don't keep track on this. What you don't know, might not hurt you.
Do you spend money that you don't have?
Posted on Wed, June 20, 2018
by Simon Snelder filed under