If you think you’re in for some great deals on Black Friday this year, think again, says Steve Siebold, author of the book How Rich People Think. While most stores advertise huge savings on hot ticket items, most people fail to recognize the “Black Friday Money Trap” they are stepping into. Just how bad is it? Siebold says in 2010, American’s spent a whopping $45 Billion in stores and on the web the day after Thanksgiving.
“Middle Class America is notorious for living beyond their means, especially on Black Friday,” says Siebold. “They are brainwashed about how much money they are supposedly saving on Black Friday, and they end up buying way more than they would on any other day during the year.”
The problem, Siebold says, is Black Friday leads many people to financial devastation. “When it comes to money on Black Friday, put your emotions on the shelf and let reason be your guide,” Siebold says.
“In 2010, the census bureau reported that total credit card debt in the United States was $886 billion. On Black Friday, either the consumer racks up even more credit card debt than they already have, or they pay cash but spend so much that they don’t have enough left to pay their mortgage, car payments and other essentials,” he says.
Here are 10 Tips to Avoid the Black Friday Money Trap:
- Make a list & check it twice!! Right down WHO you need to buy for, and WHAT you want to get them. You can even write down what stores you can buy them at – this will save you time and stress in the wee morning hours of Black Friday.
- Allocate a certain amount of money for each person you plan on buying gifts for and don’t overspend by even a dollar. This tip is SOOO important!
- Ask yourself if you would rather have the short-term satisfaction of expensive material possessions, or the long-term results of financial freedom and abundance? Instead of buying that iPad or new laptop for someone, buy them a giftcard so that can help them pay for it themselves.
- Don’t fall for marketing campaigns that make you feel as if you’re getting a great deal when you’re really not (i.e. buy it today – pay for it tomorrow). This is where price matching comes in REAL handy!!
- Don’t even think of using a credit card unless you are 100% sure you can comfortably pay it off at the end of the month.
- Don’t get caught up in the moment. If your shopping cart is overflowing, step back, regroup and make sure you can really afford everything you plan to purchase.
- Kids learn by example. Even parents who have failed to reach their financial dreams can still teach their kids important lessons about money during the holiday season.
- Keep in mind that if you don’t find that 1 important limited time quantity item, you can always keep looking. Chances are, prices will continue to be just as good after the sales are over the following week.
- There’s no shame in telling people that this year will be a lean holiday season when it comes to exchanging gifts.
There are good deals to be had on Black Friday, but be mentally tough to know when enough is enough. As we all know, the holidays are not about the gifts…they are about sharing and making memories with your loved ones.
Post published by Melissa Roach, our Product Review & Giveaway Specialist.
Melissa is a Full Time Mom & Blogger HERE (please check out her blog)