Retailers are expecting bumper sales over the Black Friday weekend this year thanks to SA’s improved consumer confidence since the May elections, as reported by the University of Stellenbosch’s Bureau for Economic Research.
But just because the crowds may be rushing to the shops to take advantage of special deals doesn’t mean you have to follow them blindly.
This is the view of Old Mutual head of financial education John Manyike, who says you should be guided by your own financial priorities and shouldn’t be swayed into impulse purchases.
According to the Old Mutual Savings and Investment Monitor, 50% of respondents are concerned about the temptation to withdraw funds early from their savings.
While the increased liquidity gained from the two-pot withdrawal system may tempt you to spend, it’s essential to remain focused on your financial goals and make choices that align with your long-term objectives.
Plan your seasonal shopping
By planning your shopping in advance, you can make Black Friday work in your favour. “Just try not to deviate from your plan,” Manyike said.
Will you really save money?
Don’t take special deals at face value. Some retailers may make a discount appear larger than it is by marking up an item before applying the discount. “If you see an item you think is at a good price, compare it online with what other retailers are charging,” Manyike said, adding that some retailers may use Black Friday as an opportunity to rid their shelves of old or unwanted stock.
Don’t give in to your emotions
Strategies around Black Friday invariably generate FOMO: fear of missing out. “You make better financial decisions if you try to remain rational, objective and emotionally detached.”
Shopping in-store versus online
You physically see what you’re getting when shopping in-store, but considering the crowds that characterise Black Friday, going online may be a better option. However, this brings its own risks. “Only use retail sites that are credible and make sure the payment method is secure,” Manyike said.
Avoid buying on credit
If you buy on credit, you end up paying more, which offsets any discount. “Exceptions may be on larger items that you were planning to acquire anyway through a credit or financing agreement, like a car, if these are subject to Black Friday special deals,” Manyike said.
