What is 'Spaving' and Can it Hurt Your Budget?

Examples of Spaving

Buy One Get One (BOGO) deals: Grocery stores typically have an entire section of the weekly advertisement inserts or a page on an app to showcase all the BOGO deals. While you may save on the second item, you likely wouldn't have purchased the additional item without a deal in place. With this type of deal, even if you get the deal just by purchasing one BOGO item, it can also be tempting to purchase a BOGO item you don't really need because it's perceived as being "such a great deal."

Free shipping thresholds: When shopping online, some retailers offer free shipping if you spend a certain amount. This often leads people to add more items to their cart to avoid paying for shipping. However, in many cases, the cost of the additional items is actually more than the shipping fee. Similarly, some retailers offer same-day shipping if you add more items to your order.

Bonus gift with purchases: "Spend $100 and receive this free tote bag." or "Get a $5 gift card when you spend $50." While you might not have planned to spend that much money, the "free" gift could entice you to spend more to receive the bonus item.

Free trials: Signing up for a subscription with the best intention of canceling before the free trial ends can quickly become a recurring charge. Free trials are meant to hook you, so set a calendar reminder for the cancellation date before you begin your free trial.

In-Store Credit Cards: "You could save 30% off today's purchase if you open a store credit card!" We've all heard the sales pitch to open a store credit card to save some money off your first purchase. While a store credit card can be great if it's a store where you frequently shop and the reward points would be beneficial, always consider the pros and cons before opening an additional credit card. If you already have multiple credit cards, you may not want or need to open an additional credit card.

How to Avoid Spaving

• Do the math. Crunch the numbers to determine if something is a good deal. Adding a $30 product to your online order to save $5.99 in shipping isn't actually saving you money and could cause you to spend money you've set aside in your budget for another expense.

• Unsubscribe from sale alerts. Seeing sales alerts pop up may tempt you into buying things you don't need. Turn off the notifications and resist the temptation.

• Pause before purchasing. Take some time to consider your purchase. Implement a 24-hour waiting period to confirm whether you need the item you considered buying. Reducing impulsive spending makes managing your budget easier and more achievable.

• Stick to your shopping list. Avoid making unnecessary purchases by sticking to your shopping list that you've prepared in advance. Don't allow a "Buy One Get One" deal to tempt you into adding extra items to your cart. If the extra item is something you use on a regular basis, is on your shopping list, or is a non-perishable item like paper towels or cleaning supplies, it could be beneficial to purchase the item as part of the deal. 

• Consider your budget when shopping. As you create your budget, include how much you have each week or month for groceries, hair and makeup products, clothing, etc. If purchasing an additional item to receive a "free gift," "free shipping," etc., causes spending in that category to exceed your budget, then it's probably best to pass on the extras.  

Being a savvy shopper has its advantages. While spaving may seem like a way to save money, it's important to approach it with caution. By being mindful of your spending habits, doing the math to assess real savings, and sticking to a prepared shopping list, you can avoid falling into the trap of unnecessary purchases disguised as money-saving opportunities.