Spaving — the act of spending money to save money — might seem beneficial to your wallet, but according to experts, the strategy can set you back in retirement.
“The reality is you’re spending more money and diminishing long-term savings,” explained Geri Hopkins, chief operations officer at Skyla Federal Credit Union. “The money spent on these so-called deals could be more effectively invested in a high-yield savings account.”
Spaving usually isn’t a one-time event, so if it becomes a regular habit, people could miss out on thousands of dollars for retirement. Here’s everything you need to know about spaving and why it could cost you big time.
