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Budgeting

The urge to spave

12 September 2013
Reading time: 4 minutes


Posted by Tom Hartmann , 40 Comments

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

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.

Comments (40)

Comments

  • Gravatar for

    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.

  • Gravatar for

    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.

  • Gravatar for Abdula

    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.

  • Gravatar for

    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.

  • Gravatar for

    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.

  • Gravatar for ELB

    26 August 22
    ELB

    I think that spaving is a trap that once you start it can be hard to escape.

  • Gravatar for

    18 August 22

    stop and think before you buy anything, are you being influnce by advertising that is making you spave
    I must learn to stop and think i spave offen.

  • Gravatar for Kyra

    24 May 22
    Kyra

    I think spaving definitely has its pros and cons. Like buying something only because it's on sale, but you don't really need it. Its more like you're just buying it so when the sale is over you feel good, because you brought it for much less than the usual price.
    But on the other hand, buying something that says buy one get one half price, if that second one will come in handy, then that's not spaving it's saving :)

  • Gravatar for

    5 May 22

    I think spaving has its pros and cons such as buying something only because it is on sale but you do not really need it .but also buying something that say is buy 1 get 1 half price if you will use that 2nd item then thats great

  • Gravatar for demarcus cousins the III

    18 March 22
    demarcus cousins the III

    spaving sounds confusing

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