Americans Can’t Stop ‘Spreading’—Here’s How to Avoid This Financial Trap

Spending more for to save but it is a very common trap.

Opportunities for so-called spaving are almost everywhere, whether by enticing a “limited time deal” or “buy one, get one free” or by adding additional items to get a bigger discount or simply to achieve the free shipping limit.

But spending to save can lead to excessive purchasing habits and high-interest credit card debt if you’re not careful, according to consumer savings expert Andrea Woroch.

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Equal to “math girl”, which divides the price of an item by the cost per use to justify expensive purchases, savings encompass all the ways in which purchasing decisions are rationalized.

″Spaving means justifying our desire to buy more,” said Brad Klontz, a psychologist and certified financial planner in Boulder, Colorado.

In almost every respect, Americans are financially strained. However, even as inflation and 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 also managing director of YMW Advisors and a CNBC committee member. Financial Advisory Board.

But stripping comes at a cost, he added.

“We constantly spend more than we can afford and then experience stress related to our financial health,” Klontz said.

Think carefully about your purchases, Woroch said — and consider the tradeoffs, especially if it comes at the expense of your economic situation. Here are your six steps to avoid the financial savings trap:

1. Quiet the noise. Identifying the triggers that lead to impulse purchases is key to avoiding them in the future, Woroch said. “Delete shopping apps from your phone that alert you to the latest sales and unsubscribe from store newsletters,” she said. “Instead, look for coupons only when you need them” on deal sites like CouponCabin.com or with a browser plug-in like SideKick, which looks for applicable codes.
2. Pay in cash. Buying expensive purchases with cash It can also help you avoid impulse spending. “You’re less likely to spend your hard-earned money on something you didn’t plan on buying or don’t really need when you’re shelling out real bills,” Woroch said. This strategy does not exclude money-saving opportunities, she added. 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.
3. Do the math. For some “buy more, save more” deals, the percentage discount is often the same but disguised as a higher amount, according to Woroch. For example, getting $20 off $100 is no better than getting $10 off $50. “Don’t be tricked into buying more,” she warned, “do the math with your calculator if you don’t have one. certainty”.
4. Stay away from temptation. If there is a specific retailer that offers limited-time sales, try to avoid going into that store. Instead, “order online and choose curbside pickup to get what you need,” Woroch said.
5. Create shopping “obstacles.” If you’re shopping online, deleting stored payment details can help create a “purchase hurdle” that forces you to think through your purchasing decisions before proceeding, Woroch said.
6. Establish time rules. When in doubt, sleep well, she advised. “Take 24 hours to think about a purchase before clicking the buy button.” Chances are you will have moved on.

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