The urge to spave

Spending to save. In this latest language mash-up, I bring you ‘spaving’ – the questionable idea that you can save money by spending it. You’d know it if you’ve ever felt the urge.

Spaving happens when the reason we’re spending is not because we need or even want something, but because we think we’re saving money. We tally the supposed savings in our heads instead of noticing how much we are out of pocket in the process.

And if we’re talking about truly saving money, in the sense of accumulating wealth, spaving is a mathematical impossibility: you cannot really save if you’re spending, right?

Spaved with good intentions

You’ve queued up extra early for the department store sale, looking forward to getting $150 worth of clothes for $100. You find something flattering, but you haven’t reached $100 yet, so you throw in a few more things that don’t quite fit… but they may someday.
You’ve headed to a hardware chain, looking for a $4 ball of twine. You emerge with a circular saw marked down by $80. You’ll use it someday, especially for more jobs that require even more… hardware. (“Lower prices are just the beginning”)
You’re trolleying up and down the market aisles, looking for washing powder in bulk. You’ve got the room to store more at home, so why not stock up and save? You end up overlooking that one 2kg box is actually more expensive than two 1kg ones.
You’re on to the Christmas sales in February – way ahead of yourself and scoring serious deals for next year’s gifts. It’s always good to have extra presents at the ready, and you can always give them away, right? When December comes, however, the kids have moved on – they’re asking Santa for entirely different things.

Retail spin

Retailers love the idea of spaving, and for good reason – it helps them sell more. While they might take a loss on some products, they know they will make it back by selling more volume. That’s why we often can get those low prices only by buying significantly more stuff.

Retailers have already got their plan for your money – do you have yours?

The other thing that’s going on here is something called ‘anchoring’, which retailers use to fix in our minds what something usually costs. We all compare prices by anchoring to something and comparing the difference.

Once that anchor is in place, retailers can then use a teaser rate that is much lower in order to make us feel like we’re saving huge amounts. And everyone loves a good deal.

Spaving is not bargain hunting

“It’s not a bargain if you don’t need it,” a friend’s grandmother used to chide. Truer words were never spoken.

Remember, just because you’ve found a coupon or a deal on something, it doesn’t mean you really need or even want it. But if you end up buying it anyway, that’s just spaving.

If it’s buy two for the price of one, and you don’t really need the two, that’s just spaving. Take T-shirts, for example, at one for $20 or two for $30. If you buy the two, sure you will have saved $10, but you will have really spent $10 more than you really needed or wanted to.

In contrast, here’s what a real bargain looks like: not long ago a colleague saw a stunning red, reversible blazer in a shop window, went in and tried it on, but decided that the $380 price tag didn’t fit her plan. Months later she was thrilled to find the same blazer had been marked down at the shop to $58! (And since it’s reversible, that’s only $29 per jacket…)

A true find, and no spaving in sight.

Just 119 sleeps to go…

Why investing is your future

Comments

23 May 24
Tekura Student

After reading this spaving actually sounds really helpful, otherwise I would most likely be standing in aisles debating if I should spend majority of my money on the item. I also liked how the text describes that retailers use spaving, they are taking losses but also gaining more. What also caught my eye was the bargain section pretty much explains that the "buy one get one free" method is commonly used but is not needed.
8 March 24

This has helped me clear up some ideas I had in my head about those so-called bargains always on at my local mall, thanks!
18 February 24

I think spaving is not necessarily the right thing to do because if you buy two shirts for $30 you are not technically saving $10 you are more spending $10 that you don't need to spend.
26 October 23
Another Te Kura student

If I were to be close to spaving I would at least have one thought about what it would do for me because I’m a bit of a miser and I think about what I’m going to buy and how much I’ll enjoy it. The only time I’d be “spaving” is when I’m in America and I see clothes that are on clearance then I buy them not caring about the size because I wouldn’t wear them because I would take them back to NZ and sell them on trade me for more and get profit.
12 October 23
Te Kura Student

I have been enlightened. I don't think anyone in my family "spaves" too hard out but rather waits until there is a sale on what we want. I personally avoid shopping at all costs unless I really need something which prevents me from spaving. People saying they enjoy spaving maybe don't get that spaving is kind of like a drug. Extremely addictive and makes you feel euphoric but isn't great for you. You'll likely end up with a house full of junk that you don't need.
21 July 23

I think that if you want to spend your money on two T-shirts for $10 less than it originally was you should, but if you don't need it and it's just going to end up polluting our environment, just get what you need and nothing more.
19 July 23

It's good to think about if you like the item or if you need the item before buying. You might only wear it once or twice before you throw it away because it's too small.
15 May 23
Abdula

Spaving Is something an average person does on a daily basis even though we don't really know what to call it.
I have definitely spaved in my life.
17 April 23

It is good when you find a deal to sleep on it and think, do I really need this, or think how many hours you needed to work to buy that.
22 February 23

I honestly kinda like the idea of spaving even though I know it's just a way for shops to lure customers and earn more profit. But I still love shopping, so knowing that I at least saved a bit is nice.