This study conducted a general analysis of the construct of materialism and assessed possible negative psychological outcomes. Self- administered questionnaires were given to psychology students (n= 91), and a quasi-experiment manipulating self -esteem was also employed. In line with hypotheses Materialism was negatively correlated with self-esteem, r = -.186 (p=<0.05), and positively correlated with anxiety (for participants over 28 years of age only), r= .518 (p=<0.01), and compulsive buying, r = .283 (p=< 0.01). Materialism was also negatively correlated with age, r =-.253 (p=<0.01), and Psychoticism, r =- .233, (p=<0.05) .Materialism differences were found across gender, and across age grouping. S.E.S, Compulsive Buying, and Psychoticism were significant predictor of materialism. No difference in loss of self- esteem was found between high and low materialists.