This Shopping Habit Feels Smart — but Is Secretly Sabotaging Your Wealth
Written by
Laura Bogart
Edited by
Kristen Mae
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While “sale” is technically a four-letter word, savvy shoppers know it’s not that kind of four-letter word. It’s a good thing — a chance to get what you need (or, okay, what you really want) for a lower cost. What could possibly be bad about that? Nothing, right? Right?
Well, turns out, it all depends. The word “sale” can lull you into a false sense of security, persuading you that it’s okay to buy anything and everything — including things you never even considered — just because it’s on sale.
Sadly, you might find that buying one item at full price could cost you less overall than taking advantage of that supposedly killer sale. GOBankingRates explored this phenomenon and offered some suggestions for avoiding it.
“Spaving” Brings Short-Term Satisfaction and Long-Term Woes
You’re far from the only person who has ever browsed a hot sale online, figured you’d better scoop up everything — and you do mean everything — while it’s at a cool price, and congratulated yourself for your supposed thriftiness. Thinking that you’ve saved money as you’ve spent it is so common that there’s even a slang term for it: spaving.
When Psychology Today examined “spaving,” writer Joyce Marter, LCPC, explained that the feel-good dopamine hit of thinking you’ve saved big while also getting what you want can keep you from realizing the long-term consequences of your actions — namely, when that credit card bill comes due.
“Spaving is an example of the present bias of money; a behavioral bias in finance that leads people to make irrational decisions that favor perceived short-term gains (‘I’m saving money now by making this larger purchase today.’) It is alluring because costly purchases are justified by how much is saved,” Marter wrote. “It can make people feel good in the moment (a dopamine release) while ignoring the greater long-term consequences of the choices.”
When FOMO Leads to Oh No
You’re bored. Or feeling a bit down. Maybe you’re tired and you know you should go to bed, but you don’t want to — not just yet. So, you’re scrolling. And in your scrolling, you see the magic word: “Sale.”
Well, you’ve needed a new — insert whatever your heart desires here — so why not explore? If you don’t, you might miss out on a once-in-a-lifetime opportunity (well, until it comes back around next month, or next week, or even tomorrow).
Those feel-good brain chemicals will last until the packages arrive. The shoes don’t fit as well as you’d hoped. The clothes aren’t as chic as they looked online. You’re staring down at those garden pots you bought and realizing you don’t have enough deck space. You get the point — these purchases just aren’t something you really needed, or even wanted.
Marter, who studies human behavior, admits she sometimes falls into FOMO spaving herself. She once bought a large quantity of pricey skincare products to “save” money per item. The problem? She didn’t end up liking some of the products, and for the ones she did like, she didn’t use them fast enough.
“Now the products are expiring and I’m throwing money in the garbage can,” she said.
The Not-So-Hidden Costs of Spaving — And What To Do Instead
Another pitfall of spaving is how quickly you can go from feeling thrifty to feeling like you’ve spent like a Kardashian — especially when your credit card bill arrives or you review your bank statement.
“Spaving can be very problematic when people end up paying more on credit card interest and fees than the benefit of the savings, or when money is spent on products or services that are not needed or end up being unused,” Marter said. “Spaving can reduce access to cash or credit, which can cause financial hardship in the near future.”
To break the cycle, implement a simple rule: Institute a 24-hour waiting period before making purchases. Instead of snapping up that sale right now, give yourself time to decide if you really need what you think you want. If it’s still on your mind after 24 hours, you can consider it more closely — and you might just find that the “limited-time-only” sale is still going strong.
Source:
- Joyce Marter, LCPC, “Are You a Victim of ‘Spaving’?”
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