In the retail world, Black Friday reigns supreme, heralding the start of the holiday shopping season.
It is unsurprising that every year, South Africans succumb to the allure of Black Friday.
Black Friday and Cyber Monday have combined to form a weekend-long shopping extravaganza, with deals starting on Black Friday, continuing through Saturday and Sunday, and continuing with new deals on Cyber Monday.
“With all of the deals to be had on Black Friday, there’s the temptation to break your budget, however, many shoppers report regret, stress, and serious financial consequences after spending more than they can afford,” says James Williams, Head of Marketing at Wonga.
“Lack of financial discipline can easily lead to financial woes,” he warns. “While most people have undoubtedly spent more than they intended to at one point or another, the consequences for doing so vary.
“For some, the material harm might be minimal. For others, an unpaid bill could lead to a cycle of debt with unaffordable interest, missed payments, and penalties.”
We all experience impulsive spending, according to GQ these are seven ways to avoid falling into this trap:
Avoid rash spending
Avoid purchasing more in order to save on delivery fees. Not all money-saving ideas are beneficial.
To qualify for free shipping, avoid adding small items to your cart.
If these are extraneous purchases, you may end up spending more than you save on shipping.
Make a purchase plan
Plan a large-ticket item purchase that you may require, but avoid purchasing anything else on your way to the checkout.
Being aware of your spending habits is the first step toward controlling them. Keep this in mind as you go shopping.
Take advantage of the discounted item you require and proceed to the checkout without adding anything else to your cart.
Compare prices to see if it’s a good deal
Be cautious of ‘was’ prices. Retailers shout about savings, often in bold, shouty text to grab attention and influence customers, which can be quite misleading.
Examine the product’s price across multiple websites, as well as the price history of the item you want to buy.
This will allow you to determine whether Black Friday prices are truly worth getting excited about.
Maintain your energy to avoid ‘decision fatigue’
Making multiple decisions at the same time is mentally taxing.
When it comes to spending your hard-earned money, making rational decisions becomes much more difficult.
Consider how much each item costs, how often you’ll use it, and whether it fits into your budget.
Avoid the word ‘FREE’
When we see the word “free,” something strange happens. We lose our ability to think clearly and go out of our way to obtain it.
Make no additional purchases to satisfy your desire for ‘free.’ Your purchase will most likely be something you don’t need and will never use.
Pay in cash
According to research, people are initially loss averse, but once they start losing money, this aversion fades.
The amount of pain we feel decreases with each additional Rand spent after our initial purchase.
One strategy is to shop with cash rather than a credit card. According to research, paying with cash makes the loss feel more tangible.
Make and stick to a budget
Put your budgeting strategy in writing, whether you’re a spreadsheet junkie or a compulsive list-maker.
Keep your plan with you, such as on your phone or a notepad, so you can refer to it while shopping.
“With inflation and interest rates surging, making the right Black Friday purchases can help you avoid overspending for the holidays and pick up some necessities that will help you weather the year ahead,” says Williams.
“Before you find yourself with a mountain of things you don’t need and bills you cannot afford, consider your financial priorities.”
The post Seven ways to resist the urge to overspend on Black Friday and save money appeared first on Entertainment SA - South African Entertainment News, Celebrity and Lifestyle Online Magazine & Entertainment.
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