A guide to Black Friday spending
MAKE CONSCIOUS COMPARISONS AND PURCHASES
Budget for your needs before you begin to splash on your wants.
With purchasing frenzy in the air with Black Friday, Cyber Monday and the festive season approaching, many shoppers give in to the temptation of every good deal.
Budget Insurance’s Susan Steward advises shoppers to ensure they budget for their needs, before splashing on all their wants.
Budget Insurance offers 10 tips on controlling your Black Friday spending: 1. Early-bird budgeting – setting a budget will help guide and limit your spending. If you’re buying gifts, budget per person. 2. Compare prices, pronto – you may assume you’re getting the best prices but this isn’t always the case. Research and compare prices and offers before
buying. 3. Shop smart with your smartphone – download money-saving and budgeting apps like Spending Tracker, which allows you to set your budget, log your transactions, and track your spending. 4. Shop online – It’s easier to spend less online because you can move from site to site instead of from store to store to compare prices. You also avoid frenzied shoppers and pumping holiday music – hidden spending triggers. 5. Curb you credit card enthusiasm – For last-minute temptation buys, don’t simply reach for your credit card. Think about how you’d want to start the new year – with a clean financial slate or looking at debt management and debt consolidation options? 6. Manage kids’ expectations – A T Rowe survey showed many parents dip into their retirement or emergency funds after overspending on their kids’ gifts. 7. Opt for a gift card – A gift card is a quick and easy way of gifting someone. Most retailers offer gift vouchers. 8. Secret Santa can be super – This tradition can drastically reduce your gifting budget. Each person chooses one family member to buy a gift for, instead of buying for each person. Everyone agrees to spend the same amount. 9. An expensive month nears – December is the most popular spending month, while January is an expensive month. It requires new spending, especially for parents who must pay for school uniforms and fees. Consider the coming months, and save accordingly. 10. Be safe – If you’re shopping online, ensure you’re buying from a reputable retailer with a credible payment service. It’s high-tide for phishing and financial fraud. John Manyike at Old Mutual said to avoid a financial hangover at the end of the spree, shoppers should certainly shop consciously. He advises: Don’t be an emotional spender; Don’t buy on credit; Don’t increase your credit card limit for Black Friday; Save from the beginning of the year for Black Friday specials; Being emotionally committed to your finances will serve you in the end. Don’t justify every purchase; Remember how much you budgeted for and keep to it; Know when to stop.