Can you afford to spend $ 400 on Black Friday?
Black Friday will be here before we know it, and at this point the deals are likely to begin. This year, consumers expect to spend an average of around $ 400 on Black Friday, according to a recent Self Financial survey. But can you afford to go this route?
How to make your Black Friday budget
It is tempting to do a lot of shopping at a time when items can be heavily discounted. But it’s also important not to overspend on this day.
If you accumulate a huge bill on your credit cards during Black Friday, you might not be able to pay off that balance when it comes due. This means that you could end up with credit card debt, which could not only cost you money in interest, but also damage your credit score.
That’s why it’s important to set a budget for Black Friday. To do this, all you really need to do is figure out how much money you have access to and how much you want to spend that day, as opposed to the rest of the holiday shopping season.
For the first step, take a look at your different sources of cash for Black Friday spending. These may include:
- Money you have in a savings account that has been used for vacation spending
- The performance of your work bonus that you will receive in December (If you accumulate credit card charges at the end of November but that money arrives before your credit card bills are due, there is no reason not to not count it)
- Money from your next paychecks that won’t be spent on existing invoices
- Money on your side, if you have one (hint: if you don’t have one, you might want to buy one for the holidays)
From there, you’ll need to figure out how much of your pocket money you want to get rid of in a single day. For example, let’s say you determine that you can afford to spend $ 800 while on vacation because you have $ 200 that you can withdraw from your savings, get a $ 200 cash bonus, and expect to have access to an additional $ 400 between your regular paycheck and your side work. .
You may feel comfortable spending half that amount on Black Friday. Or, you can decide to spend only a third of your money that day in case better deals and other holiday spending come up later in November or December.
Don’t spend too much on Black Friday
In the aforementioned survey, 42% of those surveyed regretted a Black Friday purchase. To avoid a similar fate, be sure to budget for expenses in advance and stick to it carefully.
Also remember that during your stay are great deals to be had on Black Friday, it is also possible to get discounts in the weeks before and after this mega day of shopping. In fact, you probably shouldn’t plan to spend all of your vacation money in just one day, as in doing so, you could lose out on other opportunities to make significant savings on gifts and purchases on your list.