It’s that time of year again.
Not Christmas, Hanukkah or other holidays.
Black Friday is coming.
Many people continue to browse and stay on the lookout for the best deals and find ways to spend less. The question seems to be how to invest money wisely in a time where so many stores battle for people’s attention.
And it doesn’t seem like this trend is going away anytime soon, as the popularity of this shopping season continues to increase.
In Europe, Black Friday 2019 was the busiest day in terms of transactions: 21% more transactions when compared to Singles’ Day and 90% more compared to the average 2018 Friday (with total spent being 175% more), meaning about US$7.4 billion spent online.
In that sense, the intention to spend less actually results in a spending increase.
So how can you prepare yourself for good deals while making sure you remain committed to your financial growth?
There are some simple things you can do:
Make a list and stick to a budget
One of the easiest ways to spend more than you intended is not deciding beforehand on how much you actually want to spend.
Furthermore, with a wide range of products on sale, getting lost in all the available options is more than just a possibility.
You are browsing, come across what appears to be a great deal and can’t resist the price drop.
After some time, you stop to think about that purchase you’ve made and wonder if it was actually worth it. You may even get a case of buyer’s remorse.
You may have been a victim of what researcher Dan Ariely calls bargain glow, making you compare the hypothetical full price to the discounted one, which makes you feel good about it.
As we know, small things add up, and the way to avoid the trap of looming discounts is to set yourself a spending limit and knowing exactly what you are looking for.
Everything else? You can just forget about it.
If you think you need extra help with not going over budget, you can lower the limit on your credit card or transfer balance you don’t want to use from your debit card. So even if you want to spend more, you won’t be able to, which is a great way to beat temptation.
Remember returning something you don’t want is always a possibility - just make sure you are aware of the applicable policy.
Research is an ideal strategy
Ever felt like that promotion wasn’t all it was cracked up to be? Like you could swear the original cut price was somehow higher than it was supposed to be?
It looks like there is something to it.
A study from Harvard revealed that some retailers resort to something called fictitious pricing.
Basically, the “original prices” shown on the label were never actual selling prices.
Add that to raising prices just days before a promotion can boost the bargain glow discussed above.
Fortunately, the internet makes it easier for consumers to compare prices and offers not just from different stores, but to monitor price fluctuations on a product over time.
Also, be sure to compare offers from the same store. Promotions may vary from a channel to the other, so you can hunt for the best price. At Iban wallet we will have a set of deals for new and current investors, this is the right time to think about smart choices and investing instead spending your potential resources.
Balance that expense and make it work for you
Would you spend as much if it would cost you double?
Of course not - and you can use that.
To limit your spending to what you really want and invest in a better financial future, commit to match how much you spend and make that money work for you.
On the flip side, not only do you ensure that you actually want to make those purchases, but you also can do it guilt-free, knowing that you are balancing it out and making a smart decision.
In the end, making through Black Friday takes quite a similar approach to an overall financial strategy. It is a matter of balance and making decisions within your means and that make sense to your individual goals.
If you might like to know about our Black Friday investment deals, contact our support team and we will be happy to help.
Don’t face Black Friday alone! Share this article with someone and help each other avoid overspending.