Doctor of Industrial Economics Nnamdi Nwaeze admonished the newly wedded couple for maintaining a low-budget wedding and backed It up With “Relative Income Hypothesis Theory.”
He said that in economics, there’s a consumption theory known as the Relative Income Hypothesis – The Ratchet Effect or Keeping up with the Jones.
This consumption theory postulates that household consumption does not depend on current income. That people tend to mirror the consumption patterns of their peer groups and social class, irrespective of their current income. People can lose their jobs and still struggle to keep up with their previous consumption levels. They may sell their already acquired assets, borrow or even desave just to maintain a level of consumption relating to the status of their peers and social status.
I had a personal example of this consumption hypothesis. In 2008, I spent over 3.5 million naira on my wedding and “honeymoon.” It was the height of irrationality despite my background as an economist. I was only demonstrating the Ratchet Effect or keeping up with the Jones.
As a reputed banker back then, I gave an instruction to the MC that no guest should spray us money during the wedding reception. If you had any cash gift for us, just put it in an envelope and give it to us decently. This didn’t go down well with so many guests.
Interestingly, so many of our guests left with their money [if they had any]. Some who complied with the instruction gave 50 naira; some put in rough paper inside the envelope to collect gifts. Trust Aba people and free things naa. One person even put a broomstick inside an envelope and gave it to us just to get a gift. In total, we realised about 97k+ from a wedding of 3.5 million.
During the traditional marriage rites, I insisted that we must finish everything in one day and collect the marriage list. We succeeded but not with a bruised and bleeding pocket. Ota akara nji ego ya ata.
Back to the attached picture of this cute couple who wedded last weekend in Aba, on a reasonable budget. For me, this couple is a shining example of how things should be done. DON’T LET THE SOCIETY NOR ANYONE PUT YOU UNDER FINANCIAL OR PEER PRESSURE.
My special appreciation goes to the lady who, despite the pressure from her peers, consented to this super wedding. Kudos to them, and I wish them the best in their marriage. I pray that God blesses this young couple beyond their imagination 🙏
As for me, if I’m to marry again, my budget doesn’t go to 100k. I fit even give my wife Belle and pay small small (buy now and pay later or simply hire purchase).
Dear young man and woman, marriage no cost, na you wan impress the society. ALL NA WASH. Please, learn from my mistakes and also from the example of this young couple.
Peoplesmind