[Rek jou cheque] Focus on needs on Black Friday: Prioritise essential savings over flashy deals
This year, Black Friday will be on November 29.
Research shows that retailers in South Africa will generate R22 billion in additional direct revenues from Black Friday sales this year.
Quite frankly, all I want for Black Friday is lower prices on electricity, meat, fish oil, sugar, eggs and toilet paper.
I know there are a lot of other necessities that I could add, but I won’t be greedy.
I will be grateful for the small mercies. Just give me some great specials on those few items, and I will be happy.
I don’t need a discount on a car, a TV, a massage chair or another pair of shoes. I want Black Friday to matter to me, where I need it most.
That may be what I want , but many South Africans and consumers all over the world, wait in anticipation (and long queues) to spend money on what is perceived to be dramatically reduced goods.
In anticipation of this year’s Black Friday spending rush, John Manyike, Head of Old Mutual Financial Education has several suggestions that can help guide consumers against overspending during the Black Friday buzz.
Buy only the things you need, not what you want
It is easy to get carried away when everything seems cheap or heavily discounted. Being able to differentiate between real needs and wants is critical to managing your finances effectively.
While consumers may appear to benefit from huge discounts during Black Friday, the important question remains: do I really need this item?
By practicing this type of self-control and informed decision-making, consumers can remain focused and stay on track with their spending that won’t have long-term consequences and poke holes in their pockets unnecessarily.
Plan your Black Friday purchases
Black Friday has gained momentum over the last few years in South Africa and retailers have begun advertising their specials well in advance. It is always important to Know Better to Do Better.
As part of planning for the day, consumers should must be careful of instant gratification and be sure to compare prices from different retailers and make their purchase decisions earlier on.
This approach enables one to spend and stretch ones budget wisely. Be sure to create a detailed shopping list to avoid impulse purchases.
Monitor your transaction activity
With your prepared list and budget, it is important to monitor your transactions while you shop. This will ensure that you remain within the budget that you have put aside for Black Friday. Plan, stick to your budget and avoid overspending.
There are a number of apps you can download like 22 seven which will help you stay on track of your spending and take small steps today to achieve great things tomorrow.
NEED IT, save for it
Black Friday gives consumers the opportunity to benefit from once-off discounts and specials. As exciting as this sounds, it means that you must make sure you plan and save for the items you feel you need rather than what you just want.
Many big-ticket items are advertised, such as TVs or furniture, but you need to know better to do better.
If you haven’t already saved for specific needed purchases during Black Friday, be sure to be clever and informed about your finances and what you can afford.
Don’t be tempted to buy just because it’s a sale or discounted. Your long-term financial future is always far more important. If you don’t have a budget, don’t tempt yourself with window shopping on Black Friday.
Consider shopping online
With your clear budget and list of what you need to buy, you can avoid the hassle of having to stand in long queues, wrestling with other enthusiastic, muscled shoppers; there’s the convenient option of shopping online.
Online shopping can be done from the comfort of your home and may, in fact, result in savings because you won’t have to drive around and pay for parking.
Considering we are still facing a global pandemic, online shopping will help you maintain social distancing. When you shop online, the items can be delivered directly to your home at a specific cost.
Online shopping has its dangers too. Be sure to practice caution when shopping online to protect your personal information. Be careful of scammers, and make sure you shop on authentic online sites.
The last thing you want is for your personal details to be compromised and you fall victim to online scammers while chasing Black Friday specials.
Though interest rates and petrol prices have been dropping, South African consumers are not out of the woods yet. For many of us, it’s been a rough year, so the thought of making some “I deserve it” purchases may seem very justified. But please don’t throw all caution to the wind.
Think very carefully about spending money you might need in the future and incurring debt you might not be able to repay.
dailyvoice@inl.co.za