Expenditure and more save More is a completely common danger.
So-called spawning opportunities are almost everywhere, whether it’s the lure of “limited-time deals” or “buy one, get one free” or bargaining on additional items to get a bigger discount or simply arriving. free shipping Limit.
But according to consumer savings expert Andrea Woroch, if you’re not careful, spending to save can lead to excessive shopping habits and high-interest credit card debt.
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similar to “girl math,” which breaks down an item’s price based on cost per wear to justify big-ticket purchases, spawning includes all the ways to rationalize purchasing decisions.
“Spawning means we are justifying our desire to buy more,” said Brad Klontz, a Boulder, Colorado-based psychologist and certified financial planner.
On almost every measure, Americans are financially stressed, Still, somehow inflation And as high interest rates squeeze budgets, consumers continue to fall into these financial traps.
“Teams of scientists have figured out how to get more money out of you,” said Klontz, who is managing principal of YMW Advisors and also a CNBC contributor. financial advisory council,
But spawning comes at a cost, he said.
“We’re constantly spending more than we can afford and then we experience stress related to our financial health,” Klontz said.
How to combat spawning
Think carefully about your purchase, Woroch said — and consider the trade-offs, especially if it comes at the expense of your financial situation. Here are his six steps to avoid the financial trap of spawning:
- Quiet the noise. Woroch said identifying the triggers that lead to impulse sale purchases is important to avoid them in the future. “Delete shopping apps from your phone that alert you to the latest sales and unsubscribe from store newsletters,” she said. “Instead, find coupons only when you need them” through deal sites like CouponCabin.com or with a browser plug like Sidekick, which scans for applicable codes.
- pay cash. making large purchases in cash Avoiding impulsive spending may also help. “When you’re paying actual bills, you’re less likely to spend your hard-earned money on something you didn’t plan to buy or that you don’t really need,” Woroch said. No need.” This strategy doesn’t rule out opportunities to save money, he said. Take photos of your receipts using the Fetch app and earn points, which can be redeemed for gift cards at retailers like Walmart, Target, and Amazon.
- do the math. According to Woroch, for some “buy more, save more” deals, the percentage discount is often the same but disguised as a higher price. For example, $20 off $100 is no better than $10 off $50. “Don’t let this fool you into buying more,” she warned, “do the math with your calculator if you’re not sure.”
- Stay away from temptation. If there’s a particular retailer that tempts you with a limited-time sale, try to avoid going to that store altogether. Instead, “order online and choose curbside pickup to get what you need,” Woroch said.
- Create “barriers” to purchasing. If you’re shopping online, deleting stored payment details can help create a “shopping barrier” that forces you to think about your purchasing decisions before moving forward, Woroch said.
- Set time rules. When in doubt, sleep on it, he advised. “Give yourself 24 hours to think about the purchase before pressing the buy button.” Chances are, you’ve moved on.