Black Friday finally opens its doors to great deals. We’ve been eagerly waiting for the biggest shopping day of the year. Those who can afford to spend and even those who can’t afford it, eagerly wait for the doors to open. How should you spend your money this Black Friday if you can’t resist the temptation?
According to BusinessTech the average South African has R16 481 in credit card debt, but many consumers go way beyond that average. Black Friday is an opportunity to purchase goods at a discounted price. But we urge you to be smart about your spending and prevent any financial trouble.
It’s easy to get caught up in the shopping frenzy of Black Friday and end up spending more than you should.
The golden rule is to avoid spending money that you don’t have.
How should you spend this Black Friday?
1. Do your research
The best way to go about Black Friday is to have your shopping list ready before you leave the house. Almost every store has a Black Friday special either in-store or online.
Decide what you want and search for the store that offers the best price. Some stores have their Black Friday deals listed on their website.
Keep in mind that some stores offer items as a Black Friday special, but they only lower the price by a small amount or even keep it the same. If you stumble upon an item that is similar to the actual price, rather wait and budget for that item accordingly.
2. Budget before you enter the shop
Making a budget will ensure that you don’t spend more money than you have. Remember that golden rule, avoid spending money that you don’t have.
It’s time for the pen and paper. Write down the following:
- How much, in total, do you have to spend on the big day?
- How many people are you buying for?
- Who are you buying for?
- How much are you willing to spend on each person?
- List a few gift ideas for each person.
- Research the items and search for the best deals.
Writing these items on a piece of paper will have a very different effect on how you spend, then if you had the list on your phone. A piece of paper makes information more tangible because you wrote it down.
If an item was originally R100, but you got it for R50, resist the urge to spend that extra R50. Consider that you left the shop with a bargain. You don’t need to spend that R50 just because you planned to spend it.
Rather add it to your savings. It will serve you better over time.
3. No matter what, always, stick to the plan
Once you’re ready to charge the shops and hunt for the items you’ve got your eyes on, you have to prepare yourself for what lies ahead.
You will have to restrain yourself from making impulse decisions while shopping. Making these impulse purchases could potentially set you back a lot if you’re not careful. Shops enjoy putting inexpensive items on the shelves during the big sales to increase their average revenue per customer.
Some shops even make products specifically for Black Friday. For example, a TV could be promoted at a lower cost because it has fewer HDMI inputs. In reality, you’re not saving.
You can easily avoid these temptations by knowing exactly what you need. Making sure you know what item you want with all the features and how much you’re willing to spend. This will help you stick to the budget.
4. Make smart decisions
Most people use Black Friday to either purchase personal items or gifts. If you’re purchasing an item that you’ve planned to purchase a Black Friday deal might be a big win. If you’re purchasing gifts, Black Friday specials might be nothing but a hype machine.
Purchasing an item that you’ve planned to buy changes the game for a Black Friday deal. You’ve done your research and budgeted by now; you know where you want to purchase and for how much. A Black Friday deal could help you get that item at a lower cost, helping you save along the way.
If you’re purchasing gifts on Black Friday, you’re probably hooked on the hype machine. Purchasing items on the biggest sale of the year, you’ll probably end up spending more than what you’ve budgeted for. You’ll end up spending money that was intended for something else.
Remember, avoid spending money that you don’t have. So, put that credit card far away before you end up with too much debt.