With Black Friday just around the corner, it’s important 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.
Dhashni Naidoo, Programme Manager at FNB Consumer Education says, you can avoid getting into financial distress over Black Friday by heeding the below tips:
1. Plan your budget in advance and be honest with yourself on what you can afford. Avoid spending funds you did not budget for.
2. 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.
3. Don’t use debt to buy non-essential or luxury goods. Consumers should also remember that credit incurs interest.
4. 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.
“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. However, it’s important to understand whether there has been any substantial reduction in the price of the item you wish to buy. The easiest way to determine if there has been a decrease is to track the price over a period of time. Do not be tempted to spend excessively, and if you have a list of what you want to buy and a budget, stick to it. Just because something is labelled cheaper on Black Friday doesn’t always mean that it’s a worthwhile buy,” concludes Naidoo.