We’ve all done it: Added one more item to the cart to reach that free shipping minimum. Or bought two items to get a third for free. There’s a term for that: spaving, i.e. the behavior of spending more in pursuit of more savings.
Read more: Setting up spending and savings buckets can help you avoid the temptation to spave.
What is spaving?
Spaving refers to spending more money now to save money long-term. Promotions and sales sometimes promise a perceived savings benefit, but the problem is that they often trick you into spending more. This temptation to spend can be stronger when the promotions are offered only for a limited time — or during the holiday season, when emotions run high.
Let’s dig into four common spaving pitfalls and how you can avoid them:
1. Free shipping
Many online retailers will prominently offer free shipping. But moving products across the country (or the world) is expensive, and companies need to find a way to offset the cost. As a result, they’ll often set order minimums to “earn” free shipping.
Because of the incentive to save money on shipping costs, it can be easy to feel better about adding a few more items to your cart to meet the minimum order amount. In many cases, you may not have planned to buy these additional items — or need them at all. While you might save some money on shipping, the final cost will often exceed your intended budget.
Tip: Give yourself time to rethink. Put all your items in your online cart, but don’t hit buy — wait 48 hours and reevaluate to determine what you truly need. Yes, even if it means missing the sale!
If you feel yourself being enticed to spend, think about implementing a waiting period before buying.
2. Free trial offers
In order to entice potential customers to try out a service, companies will frequently offer a free or discounted trial period. Access to a product or service for less money is a tempting deal, but always be sure to read the fine print and understand exactly what you’re signing up for. You may need to cancel the service before the price increases, or you might have agreed to a long-term contract with a higher price over time.
Tip: Set a reminder on your phone to check in before the trial period is over. That way, you have time to cancel before you’re charged, if you wish to do so.
3. Re-engagement offers
Companies may be able to identify whether or not you are likely to return as a customer using behavioral insights and data. For example, if you haven’t opened a company’s app in a while, you might receive a push notification, text or email for 10% off your next purchase. Discounts like this can entice you to return and encourage you to continue spending over time.
Tip: Trust yourself. If you haven’t bought from or interacted with a company in a while, there’s probably a reason. You can also consider unsubscribing or unfollowing to eliminate the temptation.
4. The more you spend, the more you save
This type of promotion is reliant on reaching a dollar amount or quantity of product to earn higher savings. For example, you might save 10% on a $50 purchase compared to 20% off a $150 order. Spending more may give you a higher percentage of money off your purchase, a free gift or a bonus offer of some kind.
These sales can be a great opportunity to stock up on essentials you know you’ll use, but they can also lead to overconsumption when there’s an incentive to buy more than you originally intended.
Tip: Check in with your values. Do the extra purchases align with them or take you further away? If you don’t spend the extra amount, what could you put that money toward instead?
How to avoid impulse spaving
Once you have a strong, values-based spending plan that you follow regardless of sales, reduced shipping or free trial offers, avoiding spaving becomes a mindfulness practice. Before your next shopping trip, take some time to release any money stress and dive into your money story to help strengthen your understanding of your core values, which will, in turn, make your spending more purposeful.
Before making a purchase, ask yourself these three questions:
Does this purchase align with my values?
Am I buying this because it helps me escape difficult emotions, such as feeling anxious or overwhelmed?
Does this purchase align with my financial goals?
You don’t need to avoid splurges entirely, but with a little reflection and mindfulness, you can assess which purchases truly align with your values.
