5 Smart Ways to Save on Black Friday—Without Paying for It All Year

Few shopping events generate as much excitement and dread as Black Friday. Almost 187 million people are expected to shop between Thanksgiving and Cyber Monday this year, which is over 3 million more than last year, according to the National Retail Federation.

While many stores are already offering deals, Black Friday has always been known as the day to secure the best savings on everything from appliances to clothing. However, sometimes it has the opposite effect, tempting us to spend beyond our means and saddle ourselves with debt buying items we don’t even really need.

Stephen Dissette, an investment advisor representative with Horter Investment Management, offers the following tips to prevent Black Friday from ruining your finances.

1. Create a Spending Plan

One of the best ways to avoid overspending, Dissette said, is determining before going shopping who you are going to get gifts for and how much you want to spend.

One study found that about 1 in 6 shoppers (16%) said that over half of their purchases on Black Friday are impulse buys.

“We need to avoid that,” Dissette said. “Have a plan in mind on who you want to get gifts for and how much you want to spend.”

2. Save Rather Than Borrow

Another key rule is not making purchases with money you don’t have.

“Does it really make sense to get 20% or 30% off when you’re paying 22% or 24% on credit cards?” Dissette said. “People are still paying off credit card debt from last Christmas. It’s almost like Monopoly money. I don’t have to pay for that for at least a month, and if I don’t have the money, I’ll just wait another month and then another month.”

The best approach, according to Dissette, is to create a savings account specifically for this time of year and automatically deposit money into it each month.

“If you do $50 a month, that’s $600 over a year, or if you do $100 a month, that’s $1,200,” he said. “Just have it put aside automatically so you’re not going into debt.”

3. Wait 24 Hours

A strategy Dissette uses is adding items of interest to online shopping carts and then walking away for 24 hours before completing the purchase.

“That helps overcome impulse buying,” he said. “I’d say at least half of the time, I decide I don’t want half the items in my cart. It’s a good deal if it’s something you want or need. Ask yourself, ‘Do I really want this or do I really need it?’”

4. Recognize You’re Being Played

The next time you see an advertisement proclaiming big savings, Dissette said, remember that it’s a marketing ploy. Black Friday doesn’t exist to help consumers save money. The goal is to make you spend more.

“They say, ‘the more you buy, the more you save.’ That’s so wrong. The more you buy, the more you spend,” he said. “They’re putting pressure on you by saying this deal is going away in two hours. Fear of loss is a big motivator. People just need to be aware it’s a merchandising ploy. It’s a trick. They’re trying to capture us and trick us into debt.”

5. Remember That Time Is the Greatest Gift

Another way to avoid the temptation of overspending is remembering the main purpose of the holidays.

“Too many people focus on the shopping and buying of material goods instead of what these holidays are truly for. It’s really about getting together with friends and family,” Dissette said. “It’s not about commercialism. It’s not about spending. It’s about time, which is one of the most precious gifts that we all have.”