With Black Friday around the corner, Devan Moonsamy from the ICHAF Training Institute shares valuable information about how to prepare financially.
South Africa (03 November 2020) – Now more than ever, watching your money is important. The economy is struggling, and unemployment is high. With Black Friday just around the corner, Devan Moonsamy takes a serious look at budgeting and has essential advice to help guide people through Black Friday and beyond. He shares his helpful tips below.
Unemployment and the economy
South Africa set an unwelcome record recently when its statistics agency reported that unemployment rose to more than 30% in the second quarter, which would be one of the highest of 83 countries tracked by Bloomberg.
With 2.2 million jobs lost in Q2, it will take some time for unemployed South Africans to find their way back into the formal labour market, if they ever do. South Africa faced an unemployment crisis even before the virus. The jobless rate has been above 20% for at least two decades.
As a result of the hard lockdown and consequent hardships from retrenchments, few workers will receive bonuses. However, we know that consumer spending is the only way to get the economy going again and so we encourage it.
Economic stimulation means job creation.
We still have 14 million people employed. While that is too few, we need to get back to normal as soon as possible and this season could offer the retail sector the much-needed cash injection that it desperately needs. Now more than ever, the economy requires stimulation and regrowth. Black Friday is the biggest opportunity afforded to the retail and e-commerce industry for us to contribute towards that economic stimulation.
Many South Africans will be on the hunt for a good deal this month, and retailers are gearing up for the sales rush, but this means that you might run the risk of overspending and creating unwanted debt.
Ways to avoid overspending on Black Friday
Set spending limits
If you want to control your spending and work towards your financial goals. Buying lavish gifts for friends and family and excessive food and drink bills can affect your bottom line.
Avoid spending to save
You can save yourself deep into debt. That means that retailers make it easy to spend an extra R50 or even R500 to reach that free shipping or additional discount. Instead, look for that same item from a store that doesn’t charge shipping.
Know your spending triggers
People overbuy for several reasons, but you can control your spending by identifying what causes you to shop on impulse and buy needless things.
Have a game plan
Before you head to the store to do your holiday shopping, take the time to do your homework especially if you’re planning to hit up Black Friday sales. Retailers release their ads in advance so that you can compare the advertised prices and promotions.
Put yourself on a cash diet (and stay away from credit!)
If you can’t resist a sale, you may be better off shopping with cash, especially on Black Friday so you can only buy that which you budgeted for. Putting it on credit might seem like a good idea in the short term but has serious negative impact on your long term budget.
Track your spending
It’s important to monitor your spending. People often overspend and get into debt during the holiday season because they get caught up in the ongoing sales and don’t watch all those purchases.
Shop in advance
Don’t wait until the last minute to do your holiday shopping. Instead, buy early.