It's easy to get carried away with flashy sales. Here's how to stay savvy this Black Friday.
Black Friday and Cyber Monday are technically still 2 weeks away.
Buuuut we wouldn’t be surprised if you told us your social media feed already looks like a personalised ad board designed to drain the last dollar from your bank account.
We get it. Trying to avoid impulse shopping during this time is like trying to resist a double scoop gelato on a hot summer evening.
And while it’s the best time of the year to shop, it’s also the easiest time to overspend. In fact, Aussies are forecast to spend $7.2 billion on Black Friday deals this year.
Sales like Black Friday are wildly successful because companies play on our psychology by creating a sense of FOMO.
But jokes on them because you’re not falling for those traps! You know exactly how to dodge them. Matrix style.
Have a list of what you need to buy and prioritise that list according to what fits in your budget.
Because when you’re surrounded by flashy marketing and bright colours showing slashed prices, it’s very easy to get tempted by things we “think” we need… just because they’re on sale.
Before you know it, there’s a new table lamp, dinner set and three pairs of shoes in your cart (and $400 out of your bank account that didn’t need to be spent).
The holiday season can get chaotic, and a budget can help navigate that chaos.
Some finance experts suggest allocating up to 1.5% of your pre-tax income to your total holiday spending. For example, if you earn a salary of $85,000 pre-tax, you could allocate $1,275 to your holiday spending.
Once you’ve worked out how much you’re allocating in total, segment your budget into different buckets. Think: presents, decorations, food and other end-of-year celebrations.
Shopping is always more fun with others. Take a friend or a family member with you who can help you stick to your wish list and budget, and vice versa.
It’s often easier to be more rational about someone else's spending than your own.
Take extra precautions with online stores and make sure you’re buying from somewhere genuine.
The Australian Banking Association warns there’s been a reported loss of $22 million from buying and selling scams over the past year. And a lot of these scams happen from fake websites and ads.
There are a few red flags you can look out for:
Now, there might be some items in your shopping list that you are 110% sure you need and don’t need to think twice about them. But for items you’re deliberating, give yourself a moment to pause before you commit to the decision.
If you’re shopping in person, you might go into another store for 10-15 minutes before you decide. If you’re shopping online, you add the item to the cart or save it and sleep on the decision overnight before you decide to buy.
By taking a beat before you make the purchase decision, you’re allowing yourself to beat the impulse urge and ensure you’re making the decision from a more rational headspace.
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Flux does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) and ASIC RG 36.66. Flux Technologies Pty Ltd provides general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product.
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