Beware of ‘Spaving’: Learn How to Save Without Overspending

“Spaving,” a blend of “spending” and “saving,” is a marketing tactic that often lures consumers into buying more than they need. This strategy appears in promotions like “buy one, get one free,” free shipping offers, and bulk purchase discounts. While these deals can provide genuine savings, they frequently lead to unnecessary spending and financial waste.

To avoid falling into the “spaving” trap, consider implementing these strategies:

1. Create and Stick to a Budget

Establishing a clear budget for your spending and strictly adhering to it is crucial. A well-defined budget helps you resist the temptation of unnecessary purchases, even when faced with enticing deals. Sticking to your budget can help align your spending with your financial goals.

2. Shop with a List

Always make a shopping list before you go to the store or shop online. This list should include only the items you truly need. Sticking to this list helps prevent impulse buying, which is often driven by “spaving” promotions. By focusing on your needs rather than your wants, you can avoid accumulating unnecessary items.

3. Evaluate the Real Savings

When you encounter a “spaving” deal, critically assess whether it truly offers savings. Calculate the net savings and determine if the deal justifies the expense. If you wouldn’t buy the product without the deal, it may not be real savings. Evaluating the actual value of the promotion helps you avoid being swayed by marketing tactics.

4. Reduce Exposure to Marketing

To reduce the temptation to spend on unnecessary items, turn off notifications for shopping apps, unsubscribe from promotional emails, and avoid browsing sales sections unless you need something specific. By minimizing your exposure to marketing ploys, you can make more intentional purchasing decisions and avoid impulsive spending.

Implementing these strategies can help you make more mindful purchasing decisions and avoid the financial pitfalls of “spaving.” Remember, genuine savings come from spending wisely, not just from taking advantage of every deal that comes your way. Stay focused on your financial goals and make purchases that align with your needs, not just your desires.

 

 

 

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Cory Reamer, is an Advisor at The Welch Group, LLC, specializing in providing Fee-Only investment management and financial advice to families throughout the United States. Cory graduated as a student-athlete with a degree in Finance from The University of Alabama and is passionate about helping others on their financial journey. For more information, visit The Welch GroupConsult your financial advisor before acting on comments in this article. 

 

 

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