Essential Tips For Black Friday Budgeting

Stay within your Budget!

It can be very easy to get caught up in the emotions and the deals of Black Friday and holiday shopping in general. But remember: just because something has a Black Friday sale does not mean you should buy it!

So how do you enjoy the Black Friday shopping craze while making sure that your financial goals stay on track?

We’re here to share our essential Black Friday budgeting tips that will keep you in the black this holiday season!

Easy tips to remain on budget when Black Friday shopping:

Set limits for your holiday spending. This is a great opportunity to create a budget for the year if you don’t already have one or put your budget back on track.

When I help our clients create a monthly budget, I encourage them to set aside money all year for big purchases, which often occur on Black Friday given the great deals. If you didn’t do that for this year, consider this tactic moving forward.

You can also use the money you’d normally spend elsewhere– for example using your Starbucks latte budget, clothing budget, or “going out to dinner” budget—towards your holiday gift purchases

Make sure your budget is based on your own personal finances. Perhaps your sibling is in a different financial situation than you – don’t feel the need to complete with them. Remember, it’s the thought that counts.

Lastly, try to keep your list short. Remember, you can always bake or cook something, or give the gift of time.

Price shop and look for coupons

If you have specific items on your list, check out prices at several stores to ensure you receive the best price before even going to the mall

Once you know what store you’d like to buy from, do a quick search: “your store of choice + Black Friday coupons and deals.” Be sure to print these deals out or have them downloaded to your phone.

Some websites which may be of assistance for couponing are coupon.com and thecouponingcouple.com

TheKrazyCouponingLady.com also has a list of 10 items not to buy on Black Friday. Items include: Christmas décor, bedding, and a treadmill, which she believes should all be bought after the holidays for a better price

There are several stores that also offer items free after rebate on Black Friday. Typically you have to pay approx. $10 to mail in the rebate, but then you’ll receive your money back for the item. I’ve seen items from slow-cookers, watches, and tote bags to name a few.

Use Credit Cards to your advantage

I first must say: do not use credit cards to spend beyond your needs. If you cannot pay off the credit card within the next cycle, you will most likely incur high-interest payments. So be mindful of staying within your budget.

Americans expect to spend an average of about $920 per person this holiday season. Consider using your credit card for these purchases in order to gain the points – but again, not spending beyond your budget!

For those that regularly use credit cards for purchases throughout the year, you likely have accumulated quite a lot of points. Consider using the points to purchase big gifts that are on sale for Black Friday.

Often you can buy gift cards using your credit card points. This may feel like an impersonal gift but often is most needed, especially by your college student, who may prefer to spend that money throughout the next semester. According to the 2015 survey by the National Retail Federation, 59% of consumers said they’d like to receive a gift card as a holiday gift. The great news is that most of the stories in West Farms Mall provide gift cards!

Consider credit cards that reward you for spending on Black Friday. For example, some credit card companies are paying 5% cash back on purchases at department stores, such as Macy’s and Nordstrom, during the holiday season, while others are paying 5% back for purchases at Walmart and Target.

Some cards offer price protection. You register your credit card online through the company’s website and you purchase an item with that credit card. If you find a lower price within a certain time frame, you’ll be refunded the difference

Other cards offer purchase protection, meaning if the merchandise you’ve bought with your credit card is stolen or damaged within a set period of time, you may be reimbursed the cost.

Written by Maggie Johndrow

Maggie is a Partner and Financial Advisor at Johndrow Wealth Management. She attended Providence College and the London School of Economics prior to beginning her career on Wall Street at Barclays and JP Morgan. She has taken her experience with high net-worth clients and used it to empower families and small businesses.