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November 21, 2024
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Does ‘Spaving’ Save Money or Is It Draining Your Wallet?

Does ‘Spaving’ Save Money or Is It Draining Your Wallet?

If you go shopping, you run into “spaving.” It’s almost a passion among many American shoppers. The premise is that it saves you money, but at the same time it takes more money out of your pocket.

But what is spaving, and have you ever done it? Pretty much everyone who shops in a brick-and-mortar store or online has fallen victim to this selling ploy.

What Is ‘Spaving’?

The term is derived from the combination of “spending” and “saving.” The premise is that if you spend more money you’ll save more money. One form of spaving is a deal of buy one get one (BOGO).

Retailers use this ploy to convince you to spend on items you normally wouldn’t buy just to take advantage of the deal. Ultimately, you’re not saving, your spending.

There are three examples of spaving.

BOGO Deals

You’ll pay full price for the first item and receive the second free. Grocery stores usually do this, and it helps them sell overstocked inventory.

But do you really need that first item? Some people have filled their carts with BOGOs that they wouldn’t normally buy, but they think they’ve scored a deal.Bulk purchase savings are a way to convince you to spend a high dollar amount. For example, you could spend $700 and save $100 on your purchase. You may not have intended to spend that much in the first place, but the thought of saving $100 entices you to fork over more money.Americans hate to pay for shipping and will do almost anything to avoid it. Many online retailers dangle the promise of free shipping if you meet a specific threshold of purchases.

The result is that you add more and more goods to your cart, ultimately spending as much as the shipping would have cost.

Spaving Justifies Desire to Buy

Although inflation has strained budgets, the illusion of savings convinces individuals that they are saving money. They need to stretch their dollar, but in reality, they fall into a spending trap.

They purchase the “buy two, get three free” offer, and now they have five items that they wouldn’t normally buy. But they’ve saved money. In most people’s minds, they’ve won the buying game.

How Do Retailers Win?

Slimmer margins have forced retailers to increase promotions. According to data analytics company Numerator, temporary price reductions rose between March 2023 and March 2024 by 72 percent.

With bloated inventories and consumers trying to cut back, spaving convinces the consumer to spend.

How Prevalent Are Spaving Opportunities?

Spaving is everywhere. Sometimes, the “limited time offer” carrot is dangled in front of the consumer or, of course, the BOGO. The consumer is hard-pressed to find a grocery store or other retailer who doesn’t promote spaving.

Problems With Spaving

Spaving can throw a budget out of whack and drive up credit card bills. That’s because consumers end up spending more than they had initially budgeted for when they went shopping.

According to Lendingtree, Americans pay an average of $1,583 monthly toward debt. With that much debt, overspending through spaving stress is added to already strained financial health.
Problems that arise from spaving include:

  • Excessive spending—that is, spending more than you planned
  • Waste is buying more than you can use; for example, perishables that spoil.
  • False sense of necessity is when you see a deal, you’ll think you can use it eventually. But you won’t be using it soon or at all. You feel it’s a necessary item because it’s on sale.

Overall, you bust the budget in one fell swoop by spending money on items that you don’t really need or use.

How to Avoid Spaving

You can avoid spaving and improve your financial well-being. Keep in mind that the bottom line is that spaving is a psychological trick that retailers use. You can avoid this pseudo scam.No one likes to sit down and make a budget, but it’s imperative that you do so to stay on track with your spending. If you do and stick to it, you’ll avoid overspending at the store.What leads you to impulse purchases? Knowing this will help you more than anything to avoid falling victim to spaving. Actually asking yourself is this is an impulse buy or do you really need it will slow you down when it comes to putting an item in your cart.

  • Unsubscribe to Retailers’ Sales Alerts

It’s hard to resist temptation when you have alerts going into your inbox. Just unsubscribe to these alerts. And don’t forget Facebook. Unfollow those retailers that send you the latest sale itme.Don’t even think about buying what you don’t need. Check your list often when going to the grocery store, or avoid going online just to look around. Stay clear of areas in the grocery store, like the center part, that usually have the most BOGOs. And don’t go up and down every aisle.Never use a credit card to shop. Only use the cash you have. This will keep you from going over budget with the latest spave.

Protect Yourself From Spaving

Stay vigilant when you shop. Don’t worry about paying for shipping. It will probably cost you less than meeting the threshold with useless items. Remember that a BOGO isn’t a deal if you don’t need the item.

Spaving drains your wallet and ultimately doesn’t save you money.

The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.

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