South Africa has a poor savings culture, which also means a poor spending culture.
As we approach the annual shopping day filled with discounts, deals and an opportunity to indulge in some retail therapy at a lower cost, it is important to remember to keep your spending to what your wallet can handle.
Black Friday, taking place on 29 November, is expected to inject at least R88 billion into South Africa’s economy, with the retail, wholesale, and fuel sectors leading the charge.
As much as the spending will be great for the economy, Jessica Pillay, financial adviser from Momentum Financial Planning, says there is still a need for financial vigilance.
Do not overspend
She adds that South Africa has a poor savings culture, which means a poor spending culture, however this is something that can be fixed through awareness and understanding.
To get the best out of Black Friday without falling into debt, it is important to understand spending habits and following a few simple principles can make all the difference.
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Get advice before spending
“When it comes to spending on Black Friday, it’s easy to get swept up in the allure of discounted prices,” she says.
It is important for shoppers to have a plan and seek guidance on major purchases to prevent unnecessary financial strain.
While she acknowledges that many deals do look attractive, she says it is important to consider consulting a financial adviser or using budgeting tools to keep spending in check.
Plan, plan, plan
Impulsive buying is Black Friday’s biggest trap. Studies show that it is common for shoppers to walk away with items they never planned to purchase, often because they fell for “too-good-to-miss” deals.
“This year, with a cost-of-living crisis at our heels, spending can easily spiral out of control,” warns Pillay.
“It does not matter how many lines of credit and payment options you explore. A solid plan and a commitment to staying true to that plan will be the difference between financial health and debt.”
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Make a list
Pillay suggests shoppers make a list of items that they genuinely need before going to the shops. This can help with the purchases already budgeted for.
Research prices beforehand to set realistic spending limits and resist the temptation to go beyond them.
“Additionally, we should all be using budgeting apps to track our expenses as we shop; this will help u stay within budget and provide an easy way to review spending post-Black Friday.”
Importance of responsible spending
Pillay says at the end is about making smart choices that align with long-term financial wellbeing, not avoiding deals.
“Although none of us can deny the Black Friday allure, Pillay says good spending habits, advice, and careful planning, can see us enjoy all the benefits without the financial pitfalls.”
“Financial literacy remains the best defence against impulsive spending, debt, and scams.
“In a shopping landscape filled with promises, we must all remember the golden rule: if a deal seems too good to be true, it just might be.”
