How can I make the most of Black Friday without financial regret?

Every year Black Friday arrives with a massive amount of marketing - clocks counting down the hours, flashy banners showing products with massive discounts, deals that are offered for a "limited time" and savings that are made out to be too good to miss.

Retailers create a sense of urgency, using tactics like "only a few items left", "never seen before specials", "today only" discounts and price comparisons that make a deal look more dramatic than it really is. Even the most disciplined shopper will be tempted to add items to their trolleys or carts.

Black Friday can be a great opportunity to save money but is also one of the easiest times to overspend. Clever marketing is designed to make you fear you will miss out if you don’t buy, to encourage you to impulse buy and even to buy more items than you need because it seems like a bargain.

Black Friday discounts can offer savvy buyers some good deals, but only if they really are discounts and you are not lured in by the marketing ploys and do not buy either what you don’t need or what you cannot afford. Be guided by a spending plan you thought through before the day or week rather than being led by retailers.

Buying a bargain is not a good deal if you did not really need what you bought – the logic is as faulty as the idea of “spend more to save”. By all means save on things you planned to buy and can afford. If you have enough room in your budget you can set a limit for how much to spend on discounted wants on the frenzied day or the days immediately before or after.

Here are some tips to make a sensible plan for what you will spend on Black Friday:

Think through what you could buy

Start by distinguishing your needs from your wants. Needs are essentials such as groceries, basic clothes for work or a kettle. Wants – sweet treats or expensive drinks, fashion items or a fancy coffee machine.

Before Black Friday identify any once-off or big items you need to buy, then list anything you want to buy before Black Friday.

Look at your budget and consider whether you have the money to pay for the things you need or want and how much you can afford to spend on them.

If you have room in your budget you can set a limit for buying things you may see that you want while shopping over the Black Friday period. If you know you have the money and it doesn’t have another purpose, you can spend guilt free.

Check the prices are really discounted

Research the current prices so you can see on Black Friday or the days before and after if the discounted prices on offer are in fact worth it. Remember Black Friday is not the only time things go on sale – it is just the most hyped sale of the year. 

Avoid being tempted to buy more or buy up

When the Black Friday deals open you may see things that you regularly buy offered at a discount. Buy if you were going to buy anyway but be careful of being tempted into bulk deals that will tempt you to consume more or spend on credit.

Buying more is not the only temptation. Black Friday deals can also entice you to choose a more expensive item because it is discounted. If it still costs more than you planned to spend, you are just falling for the retailer’s tactics.

Be very careful about buying on credit

If you cannot afford the item or items you want and need to buy them on credit, think carefully through your purchase and how much it will cost to repay. Any discount you get may be lost to interest if you have to pay your purchase off. And you do not hit the jackpot if you get a good bargain but later can’t repay and the item you bought puts you in financial difficulty, or worse, is repossessed.

It may be better to save up for the next sale – such as a sale after Christmas or even next year’s Black Friday – to buy that big item.

If you need to buy on credit, work out the interest you will pay and then consider if it is really worth it. Credit card debt, overdrafts and personal loans are expensive ways to buy if your purchases incur interest.

Using a buy-now-pay-later option may work, but remember your repayments must be met or you will incur charges. Also remember that December and January are expensive months for many of us – can you really afford the buy-now-pay-later repayments at this time.

Always be vigilant when shopping online

If you are going to buy online, make sure the seller is reputable and you will get what you order. Ask family and friends and check customer reviews. On the day you make your purchase, check the site again to be sure you are on the legitimate site.

Avoid large amounts of cash

If you are going to shop in a store, be very careful of doing so with lots of cash and be wary of being pickpocketed in crowded stores.

Don’t be tempted

When you are online about to click buy or standing in a store about to take an item off the shelf stop and pause. Don’t fall for the hype or the fear of missing out (FOMO). Consider your list, your budget and the research you did into prices. It is easy to get carried away by other people spending wildly and think you need to do so too. You don’t but this is exactly what retailers hope you will do – lose your head in the moment.

This article was written by Smart About Money editor Laura du Preez