With the opening up of the electricity market, I recently signed up with another retailer. I'm not here to talk about which is more worth while, but you can comment below to ask me which one I've chosen. The fact is that I've made a choice to move out of the standard Singapore Power SP retailer, because changing to another retailer will cut my monthly bills by at least 20 to 25%. Since electricity is a commodity, I really don't care which company supplies me with it, as long as it is reliable and cheaper than my current provider.
But I've asked around. Quite a lot of people are reluctant to change, mostly the older folks. I've asked my parents to switch to another retailer too, but my mum said that SP is still the more reliable one. When I told her that she can save 25% off her monthly electrical bills, she said paying more is okay because it's higher quality. Wah...okay, then I realised that the reason not to switch is based on something other than rational thought. A.k.a status quo bias.
I guess a big reason why people are reluctant to switch is because there is a lot of information to digest. And it's true. You have to read up, do comparison, which is difficult for people. There are better ways to spend your free time than to pore over boring fact sheets of at least a dozen different electricity providers and their various plans. Too much work.
While I'm pointing fingers at these people for not switching to something cheaper, am I also guilty of doing it on other aspects of my life? Are there some aspects of my life that I am procrastinating, because it is perceived to be too much work even though I know I'll be ultimately better off? I'm sure there are, even if I had sub-consciously buried it in the deep recesses of my mind.
If you're financially savvy, did you neglect your health? If you're health conscious, did you forget about growing your wealth? If you're good at investing in stocks and shares, are you dismissing properties? If you're good at investing in properties, are you missing out the potential in the stock market? If you're strong in savings, are you equally strong in growing your income? If you're good at earning money, did you play defensive well by cutting your expenses?
Too much work to do? You're comfortable where you are right now? Status quo bias?
Realization: Just because I've switched to a cheaper electricity retailer, I'm no better than the people who choose to stay with the incumbent. All of us have some better part of our lives that we can improve and better ourselves, if only we can look past the tough work to get there.
But I've asked around. Quite a lot of people are reluctant to change, mostly the older folks. I've asked my parents to switch to another retailer too, but my mum said that SP is still the more reliable one. When I told her that she can save 25% off her monthly electrical bills, she said paying more is okay because it's higher quality. Wah...okay, then I realised that the reason not to switch is based on something other than rational thought. A.k.a status quo bias.
I guess a big reason why people are reluctant to switch is because there is a lot of information to digest. And it's true. You have to read up, do comparison, which is difficult for people. There are better ways to spend your free time than to pore over boring fact sheets of at least a dozen different electricity providers and their various plans. Too much work.
While I'm pointing fingers at these people for not switching to something cheaper, am I also guilty of doing it on other aspects of my life? Are there some aspects of my life that I am procrastinating, because it is perceived to be too much work even though I know I'll be ultimately better off? I'm sure there are, even if I had sub-consciously buried it in the deep recesses of my mind.
If you're financially savvy, did you neglect your health? If you're health conscious, did you forget about growing your wealth? If you're good at investing in stocks and shares, are you dismissing properties? If you're good at investing in properties, are you missing out the potential in the stock market? If you're strong in savings, are you equally strong in growing your income? If you're good at earning money, did you play defensive well by cutting your expenses?
Too much work to do? You're comfortable where you are right now? Status quo bias?
Realization: Just because I've switched to a cheaper electricity retailer, I'm no better than the people who choose to stay with the incumbent. All of us have some better part of our lives that we can improve and better ourselves, if only we can look past the tough work to get there.
