We have all heard stories about “that guy” who made a fortune in the stock market. He’s the same guy who never loses in Vegas and always seems to find the best deals on Black Friday. But we don’t always hear about the bad outcomes in investing, from chasing high returns to taking on too much risk. Same goes for Black Friday – do you ever hear about a friend who waited in line for hours only to be disappointed by the value of the deals?
You can use these financial planning tips to help you make the most of Black Friday shopping without your finances going into the red.
- Determine what kind of shopper you are.
Just as you have to be honest about what kind of saver or investor you are to reach your financial goals, the same goes for shopping the deals. Do you make a list of the items you need, and research the sales to find the best deals before reaching for your wallet? Or do you hit the malls, rushing from store to store buying items you don’t really need?
If it’s easy for you to leave the emotions out of financial decisions, shop carefully and you could save money. If not, better to avoid the malls and online sales that day.
- Plan your purchases.
If you simply can’t resist the temptation of Black Friday deals, budget for it. Just as you pay yourself first for your retirement savings or your nest egg, putting a little money aside will allow you to enjoy Black Friday shopping without worrying about overspending.
When the day arrives be sure you stick to your budget. When shopping in-person, take the cash with you and leave your credit cards at home. If you prefer the convenience and points you can earn with credit cards, keep track of each purchase so you don’t blow your budget.
- Ask for help.
Your financial advisor is there to guide you and help you reach your financial goals, but they can only add value if you share those goals with them. Same with shopping. If you think you may overspend on Black Friday, bring a friend or someone you trust with you. Share your shopping list before you head to the mall and your maximum budget for certain items – you may find that being accountable to someone helps you make better decisions. And it’s more fun to shop with a friend!
Need help with a savings or investing plan? First, determine your financial goals, then find out how easy it is to get started with an online financial advisor.
Invisor offers Canadian investors personalized investment management solutions at a fraction of the cost of traditional advisor models, without requiring any minimum investment amounts. Get started now to tell us a little about yourself and your goals, and we’ll find an investment solution just right for you.
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