Are You Guilty of Spaving?
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Have you ever been shopping online and saw a great offer that has a timer ticking away on an unbeatable saving? Or have you ever been faced with spending an extra amount of money just to get free shipping?
Quite a lot of us have and that means we’re guilty of spaving. But what is spaving and why does it matter?
Related: How to Stay Organized with your Finances
Spaving is a term used when we spend more to try and save more, according to MyFICO. For example, if you are spending $30 on an item but if you spend another $15 you can get free shipping or a free gift.
This is not good if you are trying to spend on a budget or trying to save for your future. As these impulse purchases can cost you more than you wanted to spend to start with.
Companies are very aware of our spaving habits and will give maximum effort to try and part us with more money than we originally intended to spend. They’re great at making it look like we’re getting a huge deal. This can be done by:
- Implying how scarce the item is “this is the last one, at this price!” This puts pressure on you to decide on the spot.
- Giving social proof. Showing who has just bought this product or having the reviews visible.
- Sales wording, Buy One Get One Free! (BOGO) or 5 for $10, especially on items that are end-of-season or about to go on clearance.
Related: How to Maintain a Budget
These examples are often used in conjunction with each other to give you the impression that you are getting an unbelievable deal. Which then leads to us spaving our money.
Spaving isn’t necessarily a bad thing to do if done right and smart, says MyFICO.
- Make and stick to a budget and how much you can spend.
- Try not to use credit cards and shop with cash instead. This will naturally give you a stopping point.
- Shop around. You might be able to find an item cheaper at a competitor or use a price checking site or app.
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