Capitec advises clients to rethink Black Friday and don’t let the hype mislead you.
While the news of massive sales will get you through the shop door, the rest of the products in-store might not be such a bargain. When you later realise how much you’ve overspent, you’ll have to deal with sad Saturday and a gloomy rest of the month.
The good news is that this doesn’t have to happen. Here are some tips to help you separate the myths from the facts so that Black Friday doesn’t turn into Bleak Friday.
You can’t beat Black Friday prices
False. Festive Season is around the corner and retailers have a month left to lure consumers into their shops with attractive deals.
On Black Friday, stores have so called “doorbusters” – the big discount deals used to get you to shop in store or online – but the discount on the other products is far less.
It’s a once off opportunity
False. If you think Black Friday was planned for your benefit, think again. It is intended to get you to spend money. Retailers have not reduced prices to be kind to you! Rather it’s a chance to drive sales and increase profit before year end. They want to sell their goods and it won’t be at a loss.
I’m top of the trend
False. Not even close. The trend is to declutter and move towards simplicity. Buying things won’t make you happy. In fact, every new piece of clutter, technology or clothing you buy can add to your worries because it is something that can be stolen or damaged.
The more things you have, the more money you also need to spend on insurance and maintenance.
It’s not your last chance to shop
Don’t let Black Friday or another mass marketed sale become an excuse to buy things you don’t really need and spend money you don’t have. Think it through and be hard as well as smart. Ask yourself: “Will this purchase help me to live better and realise my dreams?” Electronics, clothing and flashy accessories quickly become old, but a new computer for your business or a vehicle to transport your kids to school stand the test of time.
Use credit but for the right reasons
If you spot a deal on an item you really need, and it will help you live better in the future, credit can be a useful tool. When buying things on credit make sure that the value of the item will outlive the repayment plan.
You should also factor in the cost of interest as this will make the item slightly more expensive. Also consider the following when taking credit:
- Avoid store credit as interest rates are usually very high. The Capitec credit card offers interest rates from prime (10%)
- Beware of hidden costs. Don’t just look at the interest rate. Compare the total cost of credit by looking at initiation fees, monthly fees, other hidden fees and any insurance you’re required to take
- Pay off debt first. Doing this will help you to easily afford the monthly instalments on your new credit, and perhaps enable you to pay more than the minimum amount every month.
Buying on sales days is also
highly profitable for thieves
The increase in people drawing cash means there’s a higher risk of cash theft and card swapping at ATMs. Rather use your card for purchases. You pay zero fees, and don’t have to carry large amounts of cash.This series is reported by Daily Sun and paid for by Capitec