Avoiding ‘Spaving’ and Stay On Track with Your Financial Goals
on Sep 24, 2024
What is Spaving?
I got home from my weekly grocery shopping trip and my daughter asks me in that “all knowing teenager” look “Mom, why did you buy 2 cantaloupes when it’s just us?” At the time, it seemed like a great deal; It was summer, and I know how much she loves this fruit. The store was having a sale, “buy one get a second one half off”, so I was happy to scoop up a second one to have for the week. But later, as I looked at the second cantaloupe rotting in the refrigerator, I realized I had just spent more than necessary to “save” money. I went to the store to buy 1 fruit and ended up with 2. That’s spaving: spending under the illusion of saving.
Spaving is a blend of the words “spending” and “saving.” It’s that sneaky feeling of satisfaction you get when you believe you’re getting a bargain. The problem is, this “bargain” often leads to spending more than you intended, which can derail your financial goals.
Why is Spaving Bad?
Spaving might not seem like a big deal at first, but it has a way of adding up and can ultimately throw off your financial progress. Here’s why it’s harmful:
- You Spend More Than Planned: Have you ever checked your bank statement and wondered how you managed to spend so much? Spaving tricks you into thinking you’re making smart choices when, in reality, you’re overspending.
- Budget Overruns: I once had a client who proudly showed me how much she “saved” during a massive sale. But when we looked at her budget, it turned out she had gone way over her monthly spending limit. Those little savings didn’t matter anymore because she had to dip into her emergency fund.
- Stress and Anxiety: It’s one thing to score a deal, but it’s another to face the anxiety of a maxed-out credit card bill at the end of the month. The temporary joy of saving a few dollars isn’t worth the long-term stress of financial instability.
- Opportunity Cost: Every dollar spent on things you don’t really need is a dollar that could have gone toward something meaningful. Imagine how much closer you’d be to that dream vacation or how much more secure your emergency fund could be if you weren’t constantly spaving.
Examples of Spaving
Let’s dive into some everyday examples—chances are, you’ve experienced at least one of these:
- Spending above a certain amount to get a “free” gift: A local restaurant runs a special where if you spend $50, you get a free appetizer. To qualify, you decide to order extra drinks and a dessert, pushing your bill well above $50. While you get the appetizer, you end up spending more than you typically would for a meal just to receive it.
- Spending enough to qualify for free shipping: This is the classic trap. You add extra items to avoid a $5 shipping fee and end up spending an additional $30 on things you didn’t need.
- Buy one, get a second item half off: You might think you’re getting a bargain, but if you didn’t actually need two items, you’re still spending more than you planned.
- Buying extra items to use a coupon or discount code: That “20% off when you spend $100” code sounds like a great deal—until you realize you only needed $40 worth of items.
- Subscribing to a service to qualify for a discount: Have you ever signed up for a subscription box just to get that first-month discount, only to forget about it until months later when you noticed the recurring charges?
- Shopping during big sale events like Black Friday: The excitement of “doorbuster deals” can make it hard to resist.
- Buying in bulk: Purchasing a large quantity of items you don’t need immediately just because there’s a discount. This can lead to spending more overall, especially if the items expire or go unused.
Ways to Be Smarter with Spending
So how can you avoid falling into the spaving trap? Here are some practical strategies that have worked for me and my clients:
- Set Clear Financial Goals: Before you shop, remind yourself of your financial goals. Are you saving for a vacation? A new home? Having clear goals will help you resist unnecessary purchases.
- Create a Budget: Make a budget and stick to it. I’ve found that categorizing expenses as “needs” and “wants” helps prevent impulse buys.
- Ask Yourself the Right Questions: Before making a purchase, ask, “Would I buy this if it weren’t on sale?” or “Do I truly need this?” It’s amazing how often the answer is “no.”
- Track Your Spending: One of my clients started tracking her spending and discovered she was spending over $200 a month on “sale” items. Once she saw the numbers, she was able to cut back.
- Avoid Impulse Buying: Give yourself a 24-48 hour period to decide whether a purchase is necessary. That “must-have” item might not seem so crucial after some time.
- Create a Shopping List: Write down what you need before you go shopping and stick to it. I’ve found that this simple step dramatically reduces impulse purchases.
- Avoid Sales Alerts: Unsubscribe from retail newsletters and disable push notifications. This will help you avoid the temptation of buying things just because they’re on sale.
Conclusion
Spaving is one of those habits that’s easy to fall into but tough to break. By staying aware of your spending patterns and asking yourself the right questions, you can avoid the pitfalls of spaving and stay on track with your financial goals. Remember, true savings come from spending money on the things that genuinely add value to your life—not from chasing every deal that comes your way.
