Have you heard of "spaving"? It refers to the phenomenon where individuals try to save money but end up spending more than they originally intended due to discounts and special promotions. About six in ten Americans admitted to spaving in a survey of 3,000 respondents. You might also be a victim of spaving.
Create a proper spending plan.
One key roadblock is that people tend to think that their past expenses were lower than they had planned, and assume that their future expenses will also be much lower. As a result, people are more likely to set up an unrealistic budget. And not being able to meet the goals they have set gets them further off track.
Check your opportunity costs.
So when we see a great deal, we get excited and think about how much we will save rather than thinking about the trade-offs. Next time, when considering a great deal, ask yourself whether this purchase is more important than what else you could do with that amount of money.
Compare prices based on units.
In general, the bigger the quantity you're buying, the cheaper it should be per unit. For example, if you're buying a 24-pack of flavored water, the cost per can should be lower than that of the 12-pack. Keep an eye on such cases and make informed decisions.
As social creatures, humans look to what others are doing as cues about what they should do. So when it seems like everyone is taking advantage of the Labor Day Sale, Black Friday, or Prime Day, we assume that we should as well, even if we do not actually need anything at the moment.
A. Stop going with the stream.
B. Seek shopping advice from others.
C. This makes people fail, which is discouraging.
D. However, sometimes promotions go against this pattern.
E. Thankfully, it's easy to avoid this spending trap with a conscious mind.
F. The problem with spaving is that it tricks you into buying unneeded items.
G. Often, we don't think about what we're giving up when making a purchase.
