We all know the feeling: you see something you want to buy and it’s a “good deal.” You can’t get to your wallet fast enough.

Maybe it’s the cute jacket popping up on social media ads, now with a 40% off coupon code. Or Target is offering a $10 gift card if you buy three laundry detergents.

But do you really need all three? Or that jacket? Yet it’s easy to justify to yourself because you’re saving money… right? Welcome to spaving.

“Spaving” is a mash-up of “spending” and “saving,” and it happens when we spend money on things we don’t necessarily need just because they’re on sale.

When you see a discount, you can’t help but focus on the savings rather than the spending! So spaving makes us feel like we’re being financially savvy – when actually we might just be spending more.

But spaving isn’t necessarily always something to avoid. Naturally, we’re all about budgeting and saving at INB. And sometimes it makes sense to spend extra money in some scenarios…

The Benefits of Spaving (When Done Right)

If you genuinely need the item and are making a smart purchasing decision, spaving can be beneficial to your bank account:

• Stocking up on products you regularly use: If there’s a deal on something you use daily or weekly, like toiletries or non-perishable groceries, spaving can be a smart move. Stocking up on items at a lower price can save you money in the long run, as you’re buying things you would have bought anyway — just at a lower price.
• Planned purchases: If you’ve been waiting for a sale on something you truly need, like a new laptop or kitchen appliance, getting the item at a reduced cost can save big money on a necessary purchase.
• Anticipating future needs: If you’re strategic and thoughtful about it, spaving can be a way to stretch your budget further. For example, as a parent of young kids, you might find children’s summer clothes on clearance at the end of the season. By buying a bigger size for next summer, you’ll save a lot of money as compared to buying full price the following spring.

Avoiding the Pitfalls of Spaving

Constantly tempted by sales and discounts? Here are a few tips I recommend to keep your spending in check:

1. Make a list: Before you head to the store or click your shopping app, write a list of what you need and stick to it to avoid impulse purchases.
2. Set a budget: Decide on a specific amount of money for sale shopping. So when the lure of discounts pulls you in, you can still indulge in some spaving – but with a pre-determined limit. (Need help budgeting? Check out our resources for making a budget.)
3. Consider the question, “Would I buy this at full price?”: And answer honestly! If your answer is no, you’re probably spaving for the wrong reasons.
4. Take some time: If you’re debating a purchase, give yourself a day to think it over. There’s a good chance your desires will dim. But if you still want the item after 24 hours, it might be worth buying.

Depending on how you approach it, the trick of spaving can either help or hurt your finances.

The time you see a “on sale” sign, ask yourself: Am I really saving here?

If you’re constantly justifying purchases because of discounts, you probably need to get your spending habits in check. But if you’re mindful of what you’re buying and why, spaving can be a great way to save on things you actually need!