Did you know Americans are planning to spend over $630 billion this year on holiday shopping? According to the National Retail Federation, enticed by great deals, consumers will be hitting stores for all types of gifts, food, and holiday items for Christmas, Hanukah, Kwanza, and other festivities. That can also mean big problems for millions of Americans: It is too easy to swipe a credit card and rack up debt. Depending on how you manage your budget, Black Friday could be good or bad for you. :–Keeping in mind that your credit card may hold a high interest rate, check out some suggestions that will help you effectively budget your Black Friday shopping plans.
Set A Limit
We all know tis the season of gifting, however, don’t let your good intentions turn into bad financial decisions. Set a spending limit and stick to it. It is a bad idea to spread your finances too thin. Even though Black Friday deals can save you a ton of money, you can easily get carried away with too many purchases that will turn those savings into big financial burdens down the road. Once you have your overall budget set, allot individual amounts for each person on your gifting list.
Make A List
Start browsing the hundreds of Black Friday deals now and create a list of the items you want to purchase. This can help you stick to your budget and give you a well-thought game plan. Another great strategy is finding an alternative product for everything you have on your list because Black Friday deals only last as long as the inventory is in stock. Chances are that you may not be able to get your first picks on a few items, so if you have a backup, it can help you retain a budget-friendly alternative. Lastly, once you make the purchase, cross it off your list and calculate how much you’ve spent to remind yourself of the budget.
Like mentioned above, swiping your credit card for purchases is all too easy and if you know that you tend to overspend, consider using cash. Carrying cash around can keep your spending under control because you only have a finite amount.. In order to avoid spending too much cash on one person without dipping into the designated amount for another, place the cash into separate envelopes with the names of each person on your list.
Don’t Forget About Cyber Monday
Hitting the stores for deals is not the only place where you can save on holiday gifts: In fact, Cyber Monday falls on November 30th and it’s a similar shopping event that takes place online. You can shop from the convenience of your home and find discounted goods as well as special deals on a variety of products.
Keep these budget suggestions in mind when you are shopping during Black Friday and Cyber Monday so you can maintain control over your budget. For more ways to take control of your budget and to stabilize your financial security, contact Broadstar Financial Group today.