Rachel Cruze: ‘Spaving’ Is a New Trend To Help You Save Money — but Does It Work?

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You’ve probably heard the phrase, “You have to spend money to make money.” A new buzzword on social media suggests you can also spend money to save money, as counterintuitive as that might sound. 

In a recent YouTube video, Rachel Cruze, a personal finance author and media personality, discussed this trend, known as “spaving.” So, can you actually save money by spending? Here’s what Cruze had to say on the topic. 

Also here are other spending traps to avoid.

What Is “Spaving”?

Spaving, a combination of the words “spending” and “saving,” describes spending more to unlock deals or other perks, as explained by CBS News. Offering discounts to customers who spend more is a common marketing tactic from brands hoping to increase sales. 

On the customer side, the thought is that you buy a little bit more than you planned to and end up getting a better deal on your larger purchase. You’re spending more but paying less per unit for the items you’re buying. 

You probably see plenty of spaving opportunities every time you go to the grocery store, and you may not even realize it. Common examples of these deals include:

• Buy one, get one free or discounted
• Hitting an order minimum to qualify for free shipping
• Buying multiple items to get a discount code or coupon
• Subscribing to repeated purchases for a discount
• Spending a certain amount to get a free gift

Cruze noted that spending more to get free shipping is something almost everyone considers when shopping online. It’s that persuasive.

Companies run these types of promotions all the time to draw in customers. They may even limit the promotions to a certain timeframe or number of customers to increase customers’ sense of urgency. When you know a deal won’t last forever, you’re more likely to pounce on it to avoid missing out. Brands take advantage of that urgency and encourage spaving. 

Does Spaving Actually Work?

There’s no denying that you can reduce your cost per item by spending more to take advantage of deals and discounts. 

The question is whether deals like these actually reduce your expenses. At the end of the month or year, will your bills be higher or lower as a result of spaving? The answer depends on your shopping habits. 

Real-World Spaving Example

Say you wanted to buy one $3 box of cookies at the store and it’s running a buy two, get one free sale. By purchasing two boxes to get the third for free, you spend $6 — twice what you intended to — but reduce your cost per box from $3 to $2. You didn’t save money overall on that trip, but you did save money on each box of cookies. 

If you were eventually going to buy three boxes of cookies, you did cut costs by purchasing them all at once to take advantage of the deal. You spent $6 instead of $9 on these three boxes. However, if you only needed one box, you paid $3 more than you would have without the deal. Yes, you got extra cookies, but you ended up spending more than you planned to. 

The Spaving Trap 

While it sounds like a good idea in theory, spaving can lead to overspending. You may damage your finances and fall into bad habits while trying to save money. 

In her video, Cruze gives the example of running out of face wash. You go to order another online and see that you only get free shipping if you spend $40 or more. Your order is close but doesn’t reach the minimum, so you look for other things to add to your cart. “Twenty minutes later, you’re starting at your cart again and the total is now $95 and then you’re like, ‘But I’m getting free shipping.'” 

Cruze’s example illustrates how good intentions to save money and take advantage of deals can quickly lead to impulsive purchases you don’t need. The problem isn’t necessarily spending more. She said, “It’s a bad thing when you’re impulse spending and you’re not being proactive.” If you’re ignoring your budget and hoping to figure it all out later, spaving won’t improve your finances. 

Using Spaving the Right Way

Spaving isn’t all bad, though. Cruze recommended one spaving hack, which is taking advantage of buy-one-get-one-free or discounted deals. She personally uses this while shopping in grocery stores for food like yogurt. If you already need two units of a product, a BOGO deal will save you money. Even a discount on the second item after buying the first is helpful as long as you need both. 

Complete an honest assessment of your shopping habits before spaving. Only spend more for deals on products you’ll actually use more of. Companies aren’t doing you a favor by running these deals, so it’s your responsibility to make sure your spending aligns with your personal finance goals. 

How To Avoid Overspending

It’s easy to get sucked in by flashy deals. Before you know it, you overspend on products you don’t need or even really want just because of the sales. Avoid overspending by following these tips:

• Create and stick to a budget
• Be intentional about all of your purchases
• Go shopping with a list of exactly what you need 
• Don’t shop when you’re stressed or upset, as these negative feelings can trigger overspending
• Consider using cash instead of credit cards for in-store purchases to limit your spending
• Ignore promotions on products you don’t use

Cruze said mindfulness and intentionality are key to making spaving work for you. You have to understand what you need and how much you can afford to spend in different budget categories. 

Ask yourself whether you have enough money to purchase the second item in a promotion. If a deal looks really promising but requires you to spend more on something you don’t need or go over budget, it’s probably best to ignore it. 

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