How to avoid overspending this Black Friday

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Black Friday is fast approaching and finance gurus are warning against overspending in today’s economic climate.

FNB Consumer Education Program Manager Dhashni Naidoo stressed the importance for consumers to exercise caution and self-discipline when managing their money during this time.

“The lack of financial discipline around Black Friday can easily lead to financial problems, especially in these uncertain times,” Naidoo said.

Black Friday spending tips

  • Plan your budget in advance and be honest with yourself about what you can afford. Avoid spending money you haven’t budgeted for.
  • Do your research ahead of time – you need to know exactly what you want to buy and determine the price for those products ahead of time. Use this time to compare and understand the current price of the item you need, so you can determine if the discounted price you see on Black Friday is favorable. Buy only what you need and not because something is on sale.
  • Don’t use debt to buy nonessential or luxury goods. Consumers should also remember that credit bears interest.
  • If you dip into your long-term savings or your emergency savings funds, that also suggests that you can’t afford to spend on Black Friday.
  • If it’s less than 45% off, it’s not a Black Friday deal, but a special end of month deal.

“Sometimes we are drawn to the excitement as well as the attractive marketing and therefore tempted to buy products just because we are told the prices have been reduced,” Naidoo explained.

If you shop online, be sure to factor in shipping costs to determine if you’re paying less than usual.

“Just because something is labeled cheaper on Black Friday doesn’t always mean it’s a worth buying,” Naidoo said.

The easiest way to determine if there has been a drop is to follow the price over a period of time.

Make a wish list and stick to it.

NOW READ: Black Friday: SA’s biggest shopping spree is just around the corner


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