Black Friday is just around the corner and financial gurus are cautioning against overspending in the current economic climate.
Programme manager for consumer education at FNB, Dhashni Naidoo, emphasised the importance for consumers to exercise caution and self-discipline when managing their money over this period.
“Lack of financial discipline around Black Friday can easily lead to financial woes, especially in these uncertain times,” said Naidoo.
Black Friday spending tips
- Plan your budget in advance and be honest with yourself about what you can afford. Avoid spending money you did not budget for.
- Do your research ahead of time – you need to know exactly what you want to buy and determine the price of those goods upfront. Use this time to compare and understand the current price of the item you need, so that you can establish if the discounted price you see on Black Friday is favourable. Buy only what you need and not because something is on sale.
- Don’t use debt to buy non-essential or luxury goods. Consumers should also remember that credit incurs interest.
- If you’re tapping into your long-term savings or emergency saving funds, this also suggests that you may not afford to be spending on Black Friday.
- If it’s less than 45% off, its not a Black Friday deal, but a normal month-end special.
“Sometimes we are lured by the excitement as well as the appealing marketing and therefore tempted to buy goods simply because we are told that the prices have been reduced,” explained Naidoo.
If shopping online, remember to factor in shipping costs to determine if you are paying less than usual.
“Just because something is labelled cheaper on Black Friday doesn’t always mean that it’s a worthwhile buy,” said Naidoo.
The easiest way to determine if there has been a decrease is to track the price over a period of time.
Make a wish list and stick to it.