How To Avoid Over-Spending on Black Friday
November is barreling by and Black Friday is in two weeks. My low-buy doesn’t officially begin until December 1st, which is after Black Friday. Yes I planned it this way lol. Not because I plan to go crazy on buying things but because I had already budgeted and planned my spending. I didn’t want to go into the day not having a set list, a budget and knowing exactly what my limits are. I did add an item to my shopping list that I am really excited about. But I removed an item to make space for it. My goal this year is to get items I really really want. And when I step back and really think about that the list isn’t all that long. Below are some of the ways I have pre-planned my spending and how you can as well.
Know exactly what you want to buy
If you are gift-shopping or are like me and use Black Friday to shop for yourself, going in knowing exactly what you want is important. You will be less likely to impulse shop and buy items simply because they are a “great deal” if you have a list in front of you. Really take the time to be thoughtful and conscious about what you want to spend your money on. What I like to do is add everything I have my eye on to a list. And then I step away from the list for awhile. A few days. Maybe a week. Whatever items have stuck in mind during that time stays on the list. Anything that I added to the list and forgot about? Gone. Because if I can’t even remember that I wanted it in the first place why purchase it? The same goes for gift shopping. Add a few items for you may want to pick up for someone and then whittle that down to the most important item or items.
Do your homework
When I say homework, I mean know where the best deals are and will be. Black Friday is no longer just a one day thing. Most stores now start there sales days or even weeks in advance. Which gives you plenty of time to cost compare or even snag a better deal than you would on the actual day. Many online sites compile lists of what stores will be putting on sale and what the discount will be. Just Google “2019 Black Friday Sales” and a bunch of info will pop up. Stores like Target, Wal-Mart, etc will likely have their sales info up early as well. By the time Black Friday rolls around you will know exactly where you want to shop.
3. Shop online
I do MOST of my shopping online. For a multitude of reasons: I hate stores, the general public, etc. But one of the main reasons is that I like that I can take my time. Often times when we are shopping in store we are overwhelmed with our options and can be prone to impulse shopping. We think we know exactly how much we are spending until we get to the cash register and then, “oops!” Shopping online allows you to see exactly how much you are spending. And seeing that number before clicking “complete order” gives you the time to really think about what you are buying and can adjust your online cart accordingly. It takes the “woohoo”I’m shopping!” adrenaline rush aspect out of it that often gets us into trouble. Also - more often that not - there are BETTER deals online than in stores. Brands are pushing online shopping more and more and they are offering deeper discounts as incentives for customers to do so. Last year, certain stores were offering exclusive discounts online that started a full week to weeks before Black Friday.
4. Know your budget
This seems obvious but it’s interesting to me how many people go into holiday shopping with no set budget. Budgets are not something that everyone does - which both fascinates and horrifies me. How do you know how much money you can comfortably spend? There is a laissez-faire attitude to holiday shopping that is usually followed by January panic when the credit card bills start coming in. Don’t be that person! Have a set budget for your overall holiday shopping and then set a budget for each gift you will be buying. If there is something you want to buy someone that is a big ticket item adjust your budget accordingly. And if you have a tendency to overspend then that is when you need to have an honest chat with yourself. If you budget $500 for all of your gifts but know that you will probably spend more like $700? Then budget $700. Don’t delude yourself about your spending. This will only make you feel bad when you inevitably spend that $700. It’s easier to just be honest about it and plan ahead. And if you know you can’t afford to spend that $700, then again you need to have a conversation with yourself about how you spend. Perhaps this means that you won’t be able to get that big ticket item. Think of a less expensive alternative or adjust your budget on the other gifts you will be purchasing to make room for it. The point is not have any surprises at the end of the holiday season.
5. Pay cash
A report from Credit Karma it showed that in 2018, the average shopper racked up over $1,000 in credit card debt during the holidays. Now if you are someone who pays that debt off in full at the end of the month then great, this doesn’t apply to you. But if you are like most people who carry that debt well into the new year, perhaps it would be a better idea to use cash. I know that this isn’t an option for a lot of people- most in fact - but here are a few ideas worth considering: Try spending cash only on the smaller less expensive gifts you buy. This will cut your credit card bill down and you won’t be paying interest on smaller items. Or if you can open a low interest or no interest credit card and use that for your shopping. That way if you plan on paying it off over time you will not be paying tons of interest. But keep in mind that this is also where the budgeting and planning ahead comes in big time.
I hope you found these tips helpful. I am in no way a financial expert and my own financial literacy has been growing quite a bit over the last year. But I have made mistakes an I wanted to pass on whatever little wisdom I learned from them. This time of year can be a shopping aphrodisiac of sorts. So many sales, new releases, stores are pumping out the holiday music and decor and we can often get swept up in it to our detriment. Taking a little time to safe guard against those temptations is worth it.
