Singaporean Swifties Spend Over $7,000 to Travel the World and Meet Taylor Swift
According to Dr Seshan Ramaswami, an associate professor of marketing education at Singapore Management University, spending on experiences brings more lasting happiness to consumers compared to spending on tangible products.
“A consumer who splurges on Swift’s concerts likely feels a strong connection to the singer multiple times… An influential figure like her can inspire them to envision big aspirations for their own future,” he explained.
Dr Ramaswami noted that local Swifties’ eagerness to attend the superstar’s concerts as often as possible may be influenced by the scarcity principle, where consumers are more attracted to items in limited supply and high demand.
Singapore is the sole destination in South-east Asia on Swift’s The Eras Tour, and she last performed here nine years ago during her 1989 Tour.
While the opportunity to see Swift multiple times in the Asia-Pacific region is enticing, Dr Ramaswami advised consumers to be cautious about becoming addicted to the emotional highs associated with substantial spending.
“Consumers may find themselves needing an even bigger emotional high in the future, leading them down a path of prolonged excessive spending that could have negative financial consequences,” he warned.
Mr Aaron Chwee, the head of wealth advisory at OCBC, suggested that individuals can indulge in occasional treats but should stay within their financial means.
“If individuals are allocating more towards pleasures rather than investments, retirement, or emergency funds, it could develop into a harmful habit over time that jeopardizes their financial future and ability to meet other financial obligations like purchasing a home,” he cautioned.
Mr Chwee recommended following a 50-30-20 budgeting rule, with 50% of income going towards necessities, 30% towards wants and pleasures, and 20% towards emergency savings.
He emphasized the importance of proper financial planning, emergency funds, investments, insurance, and budgeting, allowing individuals to treat themselves without compromising their financial goals.
“Only then, feel free to splurge on things or experiences that bring you happiness while ensuring you are still on track to meet your financial objectives,” he concluded.