BLACK FRIDAY, CYBER MONDAY: DON’T OVERSPEND – USE SALES WISELY

As Black Friday and Cyber Monday approach, shoppers are gearing up for what’s often dubbed the biggest sales event of the year. While these days offer tempting deals, they can also lead to financial pitfalls. Navigating these sales wisely can help you get the most out of your money without breaking the bank.

The Allure of Black Friday and Cyber Monday

Retailers offer significant discounts during this period, making it seem like the perfect time to grab bargains. But be careful—while some discounts are genuine, many deals create a sense of urgency that can lead to impulsive buying. Research suggests that Australians collectively spend billions during this weekend, often on items they may not need or at prices they may not have fully considered.

Set a Budget—and Stick to It

Before diving into the sales, it’s crucial to set a budget. Decide how much you can afford to spend on Black Friday and Cyber Monday purchases, and stick to it. One strategy is to list out what you actually need in advance and avoid purchasing items just because they’re on sale. This will help you avoid buying unnecessary items and falling into the trap of overspending.

Watch Out for the “Buy-Now-Pay-Later” Trap

In recent years, services like Afterpay and Zip have gained popularity in Australia. While these can be convenient, they can also encourage spending beyond your means. If you choose to use them, make sure you can afford to pay off the full amount within the interest-free period. Failure to do so can lead to hefty interest fees that erode any savings you made during the sale. Check out our article on the smart way to use Afterpay.

Be Smart with Your Purchases

Rather than buying more for less, focus on buying smarter. Look for deals on items you’ve been planning to purchase for a while, like a new phone or laptop, rather than impulsively grabbing discounted items that may never leave their packaging.

Additionally, compare prices. Sometimes, the pre-Black Friday price is inflated to make the discount look bigger than it actually is. Use price comparison websites or browser extensions to ensure you’re truly getting a bargain.

Avoid Debt for Discounts

While it can be tempting to take out a credit card or dip into your savings for Black Friday purchases, this can have long-term effects on your financial health. Overspending, especially through credit, can lead to debt that takes months, or even years, to pay off. If you must use credit, ensure that you have a solid plan to repay the amount quickly and avoid accruing interest.

Don’t Let FOMO Drive Your Decisions

Fear of missing out (FOMO) can push you to purchase items just because they’re on sale or because you feel the deal is too good to pass up. Retailers are excellent at creating this sense of urgency through countdown timers and “limited stock” messages. Take a step back and ask yourself: Do i really need this, and is it worth my financial peace?

Protect Yourself from Scams

Scammers love the chaos of Black Friday and Cyber Monday, often taking advantage of people’s desire to get a good deal. Ensure you’re shopping from reputable websites and look for secure payment options. Be cautious of deals that seem too good to be true, and avoid sharing personal information on unfamiliar sites. For more information on scams take a look at our page.

Think Long-Term

Rather than focusing solely on short-term savings, think about how your purchases will impact your long-term financial goals. Buying something you don’t really need might save you money today, but it can cost you more in the long run if it delays your ability to save for bigger goals, like a home deposit or an emergency fund.

Sales Are Tools—Use Them Wisely

Black Friday and Cyber Monday are a great opportunity to save money, but only if you approach them with a plan. Be conscious of your spending habits, avoid debt traps, and remember that true financial health comes from disciplined, mindful spending, not from chasing every sale. By setting limits and sticking to them, you can enjoy the benefits of these sales without sacrificing your financial well-being. Take our financial wellness quiz to help you understand your financial situation.