cover of episode How You’re Being Tricked into Staying Broke

How You’re Being Tricked into Staying Broke

2024/7/8
logo of podcast George Kamel

George Kamel

Chapters

The episode begins by exposing the concept of 'spaving', where consumers are tricked into overspending under the guise of saving, highlighting tactics like BOGO and subscribe and save.

Shownotes Transcript

I'd bet you a hundred Dogecoin that you're still falling for one of the oldest marketing tricks in the books. Which is a bummer because it's keeping you broke. This one simple marketing maneuver makes impulse buying sound smart so you happily overspend on stuff you don't need even if it means racking up high interest credit card debt. Yeah, I'm talking about spending to save or spaving. If four syllables is somehow too much of a mouth workout for you. This classic con has been flying just under your radar recently thanks to aliases like BOGO, subscribe and save.

in-store cash rewards, or even buy in bulk. That's why today, I'll expose the spaving strategies marketers are using against you and help you start playing good defense. And if you think I'm done with the sports analogies, think again, bucko. We're just getting started. But hey, before we hit the field, go ahead and give your team captain a virtual high five by hitting that like and subscribe button. Clear eyes, full hearts. Blue 42, set hut. Set hut! Set hut! Set hut! Set hut! Set hut!

Alright, time to study some metaphorical game tape because these marketers have definitely been studying you. That's how they know that you're a walking, shopping dopamine addict. Now as humans, we all experience a hit of these feel-good brain chemicals like endorphins and dopamine when we buy stuff. And that's already good news for marketers. But then...

They figured out that if we think we got a good deal while shopping, it triggers even more than a cute little dopamine high. It's full on Niagara Falls up there, baby. And marketers took this intel to heart. And now they pump these deals and sales at us 24 seven. And if you don't believe me, just check out literally any mattress website. How is time always running out? How is an offer a limited time deal every time? Why is every sale flash? And why is every promo code welcome 15? You're welcome for that one. Oh my God. He's on to something.

And that 24 hours left subject line in your inbox somehow convinces you that now is the time to buy those Skechers slip-ons while they're still 35% off. And you're moving down the field, you add them to cart. You bundle with a pair of socks for an extra 10% off. Your cart has saved you an Apple Pay, so all it takes is a single click and goal! Goal!

One point for team capitalism. Okay, huddle up, guys. We need some defense against all these urgent deals. Our first move is to go no contact, as in unsubscribe and unfollow all the brand stores and even the influencers that are tempting you to spend. This also means no more window shopping at the local mall to get your steps in. All right, save that for your golden years. Your second strategy is the 24-hour timeout.

All right, listen up. I need you to sit on the shopping sidelines and don't get back in the game until you've given yourself a full day to think about whether or not you really want those Skechers or better yet, need them. I pity the fool who have to touch his shoes to put them on. Slowing down is the best antidote you have for overcoming that I want it now frenzy.

Alright, back to the pitch. I know some of you are already too savvy to buy something as asinine as Slip-on Skechers just because they're on sale. You'd rather save money instead. But Team Capitalism figured out a way to use those words against you. So instead of just offering a discount like 25% off, they started saying...

We love that you want to save money. And that's why with this deal, you can save 25 when you spend 100. Newsflash, the math is exactly the same at 25% off. Only now, you have to hit a certain spending minimum of 100 bucks to get that discount. Sneaky, sneaky.

And you'll see the same kind of word wizardry at play in phrases like, buy two, get one free, earn in-store cash back, or get 500 reward points when you spend 50 bucks. Listen, the only reward you're getting with those get your slip-ons is every single person avoiding you in public. That's two points for the away team, you, zero. Okay, so how do we play defense against all these sugar-coated sales pitches? Easy, we do the math.

Oh, math. That's not so hard. Yes, you can do this math. I believe in you. Just take a few extra seconds to think about how the deal is worded and then use your handy calculator app to figure out if the savings are as good as they sound. For example, we've all seen the spend 50 get 15 deal at Target or Amazon. That's a 30% discount.

But that $15 is for a future purchase. So you're not actually saving money today. It just gets you to come back to the store later on. Or what about buy one, get one free? Well, that's 50% off. That might be a good deal if you can afford the minimum spend on one full price product and if it's an essential that you use regularly. And speaking of essentials you use regularly, let's talk about your cell phone service. I bet you would kill for a nice Welcome 15 discount code on that cell phone bill every month.

Unless of course you've already switched to Tello, one of the sponsors of today's video. Tello users don't have to scrounge for coupon crumbs because they're already enjoying crazy affordable plans as low as five bucks a month or up to 25 bucks a month for the unlimited everything plan. Plus there's no contracts to sign and no fees to pay.

So if you're ready to score some serious savings, head to tello.com slash George and bonus, get five bucks off the unlimited data plan for your first month of service. That's tello.com slash George or click the link in the description below. All right, this little halftime show we find ourselves in is also brought to you by our friends at Delete Me.

Now, these guys know a thing or two about defensive strategy. Their sole objective is to keep your personal info away from scammers, spammers, and big data brokers. Because the last thing you need is an identity thief making it rain Kohl's cash in your name. DeleteMe combs the internet to find and remove your info from hundreds of data broker sites, and they send you an easy-to-read report so you can sleep easy and be rested up for the big game tomorrow. So if you want to help protect yourself from the risks of identity theft and online scams, it's time to team up.

with delete me. And right now you can get 20% off their plans by going to join delete me.com slash George, or just click the link in the description. All right, halftime's over guys, drop the Kool-Aid jammers and let's get back on the field. Now, hopefully it's obvious at this point that a marketer's first goal is to get you to buy something, but once it's clear, you're on the hook,

Their next goal is to get you to spend as much as possible in a single transaction. And that's why a whole new world of spaving possibilities pops up on the screen the minute you add something to your cart. Spend $20 or more and get free shipping. Unlock an additional 25% off when your cart hits $75. Subscribe and save 5%. Using spaving tactics as a way to upsell you, as they say in the biz, this actually works. There's not a single one of us who hasn't scoured the sales section for a $20 tchotchke to avoid the $7 in shipping fees. And guess what? That means three points for them on the board. No!

And still, no soup for you. All right, you know the drill. We got to talk defense here. And the one thing we can do to beat these spaving upsells is fight with friction. As in, intentionally make the checkout process harder on ourselves by refusing to store our card info on these apps and websites. Goodbye, Google Pay. Adios, Apple Pay. Peace out, PayPal. And since upselling uses the momentum of a purchase to get you to buy things you didn't initially plan on, breaking that momentum by forcing yourself to pause and pull out your card is sometimes all you need to think more clearly about that subject.

The other thing we can do is premeditated shopping, which is just an angsty way of saying, thinking about what you're going to buy before you go to the store or open that Amazon app. Now this can be as simple as creating a note on your phone and sticking to the list that you wrote down. Just start being proactive because sometimes the best defense...

is good defense. Again, I don't watch a lot of sports. I don't know what they actually say. The team! The team! Go team! Go sports! Anyway, there's a few minutes left on the game clock, so it's time to talk about every marketer spaving Hail Mary. This tactic completely overwhelms and disorients your common sense, making it extra dangerous. And I'm not gonna lie, this one is my own personal kryptonite. Well...

That and gluten. That's right. I'm talking about buying in bulk. Don't be fooled. Bulk deals aren't exclusive to wholesale clubs. They are everywhere. Like Home Depot offering you a 40% price break when you buy six allergen-reducing HVAC filters. Or Orange Theory selling you a membership package that works out to only $13.63 per class. I mean, even Disney Plus Premium wants you to save $27 when you pay annually. And all of these bulk buys are spaving deals that get you to fork over more money right now.

And I'll admit it, sometimes the deals are worth it. But there are also times where you end up spending five bucks on avocados that are gonna go bad before you can even eat them. Yeah, you missed the one minute window when that avocado was perfectly ripe and it's your fault. And guess what? That's a fourth point to team capitalism. It's a shutout.

So how do we bulk up on defense instead of canned garbanzo beans? Well first, let cash be king. If you have to put that package of sauna sessions on payments, then it's gonna be a no for you, dawg. And I promise a discount is never worth going into debt for. Ever. Your other big move here is to respect the budget. This means checking to see if you have money to spend before you start shoveling method hand soap or Sensodyne toothpaste into your cart. And if you learn to check the budget first,

It'll also be a good reminder of your financial priorities for the month, which might make leaving those deals behind a little bit or a lot easier. Now, if you don't have a budget yet, you gotta get one. A budget takes all the guesswork and stress out of spending, saving, and spaving. And frankly, it's an absolute godsend for those anxiety-triggered IBS sufferers. Not that I would know. My microbiome is none of your business. This is classified information.

So if you enjoyed even a single second of this video, be sure to check out my favorite budgeting app, EveryDollar, and you can create your budget for free. Go to everydollar.com slash George, or just click the link in the description to get started. Now, I want to be clear. I don't think marketing and salespeople are evil. At the core, marketing just means getting the word out about a product, and it can absolutely help people improve their lives without being manipulative. But there's a lot of marketers out there that don't give a flying tart about you or the financial future you're dreaming of. I, on the other hand, I don't.

I give a tart. I personally support your dreams because they're one of the best defenses you have against overspending of any kind. Long-term goals are what makes short-term dopamine deprivation absolutely worth it. So if this spaving video got you motivated to make that piece silent, that would make it saving. Check out this video to learn the 12 rules you need for a frugal life. I'll also link it in the description below. Thanks for watching. We'll see you next time.