Ready for Black Friday deals?
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Black Friday is almost here, marking the unofficial start of the holiday shopping season.
This event, traditionally the day after Thanksgiving, offers buying opportunities, discounts and promotions that many shoppers have been waiting for all year. However, Black Friday (Nov. 28 this year) can also be a potential threat to your financial stability, especially if you do not plan and manage your purchases effectively.
Below are some important reminders to ensure Black Friday deals do not derail your budget and long-term financial goals.
1. Have You Set A Non-Negotiable Budget?
It is not a bad idea to start your holiday shopping during Black Friday, as long as you allot a fixed budget. Forget about looking at ads and deals available from online or physical stores; your priority should be checking your bank account and determining how much you can spend without derailing your other savings and financial goals.
You should set a maximum limit for Black Friday spending based on your disposable income. Ensure that you do not touch your emergency fund or money earmarked for necessities, such as rent, utilities, or debt payments.
If possible, transfer your Black Friday funds to a prepaid card or a temporary savings account. When this fund is empty, stop shopping. No questions asked.
2. Do You Have A Shopping List?
Think of Black Friday as a targeted mission, and this list serves as your master plan. The goal is to buy things you would have purchased anyway, but now at a better price, thereby maximizing savings.
You may identify items such as replacements (e.g., for broken appliances), necessities (e.g., annual clothing for children), or pre-committed gifts. These may be considered as needs, as long as they are planned.
Remember, any items that you suddenly realize you “must have” because they are heavily discounted are wants, if they are not on your list. They are impulse purchases that do not really save you money.
Consider this example: Say you see a vacuum cleaner with an original price of $250 and tagged 50% off. Most people would think of it as a great deal and that they will save $125. However, if you were not really looking for a vacuum cleaner, that is actually an additional $125 expenditure that you didn’t plan for. That’s an expense, not savings. So prepare a list and stick to it.
3. Did You Check Price History?
This is part of due diligence to ensure that you are getting a real markdown on your purchases. Before Black Friday (or any other sales event, for that matter), the listed original price of items often experiences inflation. It is not uncommon for retailers to temporarily raise their prices weeks prior so that the Black Friday deals and discounts appear larger.
To combat this tactic, you should have researched the item’s price months or weeks before the sale. And even if you haven’t done this, you can still use tools like CamelCamelCamel from Amazon, Honey, or Keepa. These track the average and lowest price points of items over an extended period, providing insights into whether the sale prices represent genuine discounts or just temporary markdowns from inflated prices.
4. Are You Planning On Using “Buy Now, Pay Later” Offers?
The surge of BNPL schemes has created a deceptively easy way to exceed your budget. While they are marketed as interest-free budgeting tools, they often serve as debt facilitators that encourage you to purchase items immediately while deferring actual cost.
BNPL fragments your debt into small, manageable installments across multiple vendors. This makes the total debt difficult to track and easy to forget. Unlike a single credit card statement, this invisible debt can quietly accumulate over small purchases, stretching your budget long after the holidays are over. Even worse, if you miss a payment, you can trigger interest charges that negate any of the discounts you availed in the first place.
Beware of BNPL offers. Use them only if they align perfectly with your budget and you can guarantee timely payments.
5. Did You Sign Up For Email Newsletters From Your Target Stores?
Retailers typically reward their most engaged customers with the earliest access. If you haven’t yet, sign up for these newsletters before Black Friday, using a secondary email address.
This can allow you to get early-access codes, personalized discounts, or notifications on limited pre-sales. Many high-demand doorbusters are sold to email subscribers or app users before the general public even sees the sale.
After you have made your planned purchases, unsubscribe or mute notifications. Remember to use a secondary email address to prevent your primary inbox from being flooded with marketing that tempts impulse buys.
6. Are You Aware Of Black Friday Scams?
There is a particular urgency with Black Friday, and it’s fertile ground for scams and fraud. Be very careful of where you shop, especially online, because a single click can be disastrous.
For example, ensure that you use a retailer’s verified, official website. Always check the secure URL (with https://) and padlock sign. Only purchase from known, reputable sites.
There are also phishing scams that mask the malicious link through fake delivery notifications. Red flags include “delivery problem” message, urgent language, and asking for a redelivery payment. Don’t click on links from unknown senders. If you would like to follow up on a delivery, contact the retailer directly through their official channels.
There are other common Black Friday scams, including fake orders, counterfeit coupons, and unauthorized account verifications. Again, be very careful where you shop and how you pay. And a good general rule of thumb is: If it’s too good to be true, it’s probably false.
Final Thoughts
Black Friday can be an excellent opportunity to save, but your success depends on proactive planning and financial discipline. Review and follow the tips and reminders above to maximize your savings and protect your finances.
Lastly, don’t forget to conduct due diligence after making your purchases. Always check the return policies for every item you buy and keep receipts, order confirmations, and other relevant documentation, in case you need to exchange, return, or claim a warranty later on.
Stick to your plan, and you will enjoy Black Friday deals without breaking the bank. Happy shopping!
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