Caution is advised amidst the Black Friday pitfalls. FNB offers valuable tips on managing finances during this high-spending period. Consumers will find themselves tempted to spend their hard-earned money. However, exercising prudence in spending with the current economic climate and inflation is crucial.
Despite the economic challenges, there’s still an opportunity to secure good deals for the festive season or purchase essential items at reduced prices before the new year. Ester Ochse, the product head at FNB Integrated Advice, emphasises the importance of intentional budgeting during Black Friday. She suggests creating a structured purchase plan to identify essential items, ensuring a more mindful and cost-effective approach.
Ochse shares several tips to guide consumers through Black Friday deals:
- Create a list: Compile a list of items you wish to buy and categorise them into needs, wants, and nice-to-haves. Needs include essential items like stationery or groceries, while wants and nice-to-haves encompass discretionary spending on clothing or electronics.
- Set a budget: Determine a comfortable budget without resorting to credit. Allocate the budget to the listed items, prioritising needs over wants and nice-to-haves. FNB’s Smart Budget app can assist in tracking and managing your budget effectively.
- Do your research: Start researching earlier in the year to understand the usual costs of items and compare prices across different retailers. This research ensures that your spending reflects discounted prices, and checking retail websites and advertisements aids in effective budget allocation.
- Use loyalty programs: Leverage loyalty points, such as eBucks, to offset some of your shopping expenses. Explore travel deals if applicable.
- Shop safely: Exercise caution when shopping, primarily online. Use virtual cards for online transactions to enhance security and earn rewards like eBucks. Verify the legitimacy of websites and never share sensitive card information or PINs.
As Ochse concludes, while Black Friday presents an excellent opportunity to snag bargains, managing spending carefully to avoid financial stress in the following months is crucial. These tips serve as a guide to help consumers make informed and responsible choices during the Black Friday sales event.
Source: Beware the Black Friday pitfalls
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