Have you ever purchased a new gadget or piece of furniture, only to find yourself wanting to upgrade other things in your home to match its level of quality or style?
That’s the Diderot Effect in action, and it’s a phenomenon that can significantly impact our spending habits and overall well-being.
The Diderot Effect is named after the French philosopher Denis Diderot, who wrote an essay about the feeling of discomfort that can arise when one is surrounded by possessions of different styles or qualities.
This discomfort often leads us to upgrade and acquire additional items to match our new possession, creating a cycle of constant consumption and dissatisfaction.
But it doesn’t have to be that way. By understanding the Diderot Effect and practicing mindful consumption, we can break this cycle and focus on what truly matters in our lives.
Let’s choose to appreciate and find contentment in what we already have, rather than constantly striving to gather more.
Have you experienced the Diderot Effect in your own life? Share your thoughts and experiences in the comments.
Vikas Sharma, CFP®, is a first-generation purpose-driven entrepreneur with over 19 years of experience in financial services, personal finance, and the advisory space. He is a Certified Financial Planner, an IIM Calcutta Executive Alumni, and holds an MBA in Finance and a Postgraduate qualification in Financial Planning.
Currently, Vikas is the Co-Founder & CEO of The Logical Advisor (TLA Academy Pvt. Ltd.) and Goalchi Capital Solutions LLP, where he integrates life, purpose, values, and money to create meaningful financial journeys.
He has worked with a leading Asset Management Company, mentored 1,500+ IFAs and Relationship Managers across India, and educated 10,000+ investors through Financial Wellness programs. His work has consistently focused on reshaping advisor and investor behaviour to enable sustainable success.
Vikas also coaches and mentors financial advisors nationwide, helping them build purposeful and successful careers.
