Written by Cathie Ericson
Published Mar 07 | 4 minute read
Almost everyone has been there—taking advantage of a deal like "buy two, get one free." Or adding an extra sweater to your online cart to hit the free shipping threshold. After all, you're saving money, right?
Sure, you might be saving in theory as you aim to attain a limit. But if you're acquiring things you don't want or need, you've succumbed to a trend called “spaving": a mashup of “spending" and “saving" whereby you're shelling out more money to save some.
Here's what you need to know to resist spending excessively yet still benefit from true savings opportunities.
Spaving can come in many different configurations. Here are a few you may encounter.
Shipping fees can be a cart killer, which is why the allure of free shipping is a powerful incentive. However, brands know this and may set a relatively high minimum to tempt you into adding more to your cart than you intended.
Outsmart it: Determine if you'll actually use the extra items. When you do the math, you might find that adding an unnecessary $20 to save $7 doesn't track. If you are routinely rounding up at the same site, consider grouping purchases or partnering with a friend.
Often called BOGO—as in buy one, get one—this promotion can also come in even sneakier formats that encourage bulk buying, such as “save $1 on 4."
Outsmart it: At first glance, this seems like a great way to stock up and save, but this clever marketing tactic only works if you use the goods within their shelf life. Before taking advantage of the offer, consider your typical usage or split with a friend.
These gifts are typically tied to either a specific product or dollar amount, which might be artificially inflated. Another related promotion promises an award to use later, yet it's often designated for a short window of time when merchandise is likely to be at full price.
Outsmart it: Before being persuaded to click “buy," scrutinize the reward, which may be of limited value or use, such as a low-quality accessory or a sample-sized product. If you can use or realistically gift it, consider the incremental amount required and whether it fits your budget and needs. Let's say you're offered a set of travel cosmetics if you spend $100, so you add in a $40 lotion to augment a planned $60 fragrance. Would you have bought the lotion if not for the offer—and would you have coveted that freebie independently?
Here you're offered tiers such as 5% off if you spend $50, 10% off if you spend $75 and 20% off if you spend $100, encouraging you to spend more for a shot at more savings.
Outsmart it: Spending is spending, so again, decide what you truly need, and then avoid adding to your order just to “save" more.
Using a gift card can be a wonderful way to indulge yourself, but only if it's for a store you would otherwise frequent and merchandise you'd happily snap up.
Outsmart it: The good news is that you don't have to use the card right away. Most gift cards offer some leeway, as federal regulations state they must be valid for at least five years from the date issued. (Note that each state might have additional regulations, which the link above helps break down.)
If you find yourself browsing racks for something that's just OK or having to reach into your pocket to make up the difference for a purchase, consider another use for the gift card. You might give it to a friend with similar taste, or you could sell it at a site like CardCash or GCX (formerly known as Raise). While you likely won't recoup the full value, redeeming some cash or exchanging it for an outlet you will frequent is a more practical solution than letting the balance go to waste on an impulse buy.
As noted, there are specific ways to avoid busting your budget, depending on the spaving situation. However, there's one overall method that will consistently prove valid: deploying the technique of slow shopping, which means pausing before buying. Here are four ways to get started with slow shopping:
If you haven't already, now is the time to create a budget that covers your needs, while also allowing flexibility for little treats and purchases that meet your goals so you can seize an appealing deal.
Whether you're planning to buy groceries or a birthday gift, identifying your spending priorities and the budget you're allocating for each allows you to make better decisions.
Next time you spot a must-have, hit pause before deciding. It might be an hour for a smaller item or 24 hours or more for bigger-ticket splurges. This delay allows you to be more intentional rather than getting caught up in promotional excitement.
With a cash back credit card, you're earning a percentage back on every purchase. Just make sure you're prepared to pay the balance off in full each month. Otherwise, the interest you accrue will erase the value of the rewards and become yet another form of spaving.
Spending to save might seem like a boss move, but it often leads to unnecessary purchases disguised as a deal. By recognizing common traps and employing strategies like slow shopping and thoughtful budgeting, you can resist the urge to overspend. True savings come from mindful purchases that align with your needs and priorities—not from chasing promotions that inflate your cart.
Looking for more information on current savings trends? Read up on loud budgeting and find out how high yield savings and money market accounts can help your savings grow effortlessly.
Cathie Ericson is an Oregon-based freelance writer who covers personal finance, real estate and education, among other topics. Her work has appeared in a wide range of publications and websites, including U.S. News & World Report, MSN, Business Insider, Yahoo Finance, MarketWatch, Fast Company, Realtor.com and more.