Most of us recognize that many marketing campaigns are designed to get as much of our money as they can and to get it right now. This has actually led to a term called spaving which is a blend of spending and saving. It refers to the illusion of saving money by spending money. In other words, you spend more than you’d planned thinking you’re saving money.
As an example, you go to a store planning to buy one shirt for $30. You see a deal: “Buy two, get one free,” so you buy three shirts for $60. You tell yourself you “saved” $30, but you actually spent double what you intended. Another very common example is “Free shipping on orders over $50.” You add random items to hit $50 instead of paying a $5 shipping fee — effectively spending more than needed.
Naturally, there are times to spend a little more, but often you’re tricked into this. You might properly spend more to get a good deal on toilet paper or other items that you’ll definitely use and that are cheaper in bulk. You might avoid a $25 shipping charge by adding a $5 item to your order. It all boils down to whether you’ll really use the items and what the total price of the alternatives is.
So, it’s a good idea to watch out for these marketing tricks. Here are some ideas on how to do that:
- Shop with a List. Before buying, write down what you actually need — and stick to it.
- Ask Yourself the “Full-Price” Question. Would I buy this item if it weren’t on sale? If not, it’s probably spaving.
- Compare to Your Budget, Not the Discount. Focus on what you’re spending, not what you’re “saving.”
- Wait 24 Hours Before Buying. The “cooling-off rule” — if you still want it tomorrow, it’s more likely a real need.
- Unsubscribe from Marketing Emails. Stores use constant discounts to create urgency and tempt you to spend.
- Track Your “Deals.” Note how often sale items actually saved you money versus when they cost you extra. The pattern can be eye-opening.
Hopefully you’re now super aware of spaving and will mainly avoid it. If you’d like to further discuss this topic or any other financial questions that you may have, we’d be pleased to get together in a no-charge, no-obligation initial meeting. Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.
This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products. Please consult your tax or investment advisor for specific advice.