Have you ever wondered how Black Friday, the biggest shopping day of the year, got its name?
One theory is that the day after Thanksgiving was when retailers started selling enough merchandise to get out of ‘the red,’ or an annual loss, and into ‘the black’ – a profit for the year.
For many consumers, however, the name Black Friday can mean the opposite – the day they start over-spending on the holidays. With that in mind, here are six tips to indulge in Black Friday shopping while staying in the black.
PLAN: Before you start shopping, make a list of people you want to give a gift to, gift ideas for each person, and how much you want to spend per gift. Include sales tax, stocking stuffers, wrapping paper and bows, holiday cards and decorations into your calculations.
THINK TWICE: Put your list aside for a day or two and then review it carefully with an eye toward cutting back your expenditures before you proceed. Ask yourself whether everything on your list is truly worth the financial pain you’ll suffer if you over-spend on Black Friday.
DO HOMEWORK: Before you head out to the brick-and-mortar stores, check the prices of your planned purchases online. Add in sales tax and shipping costs so you can make accurate comparisons before you decide whether to purchase each item online or in a store. If an item costs more than you planned, cross it off your list and substitute something more affordable.
BE ACCOUNTABLE: Once you’ve made your list, check in with a friend, family member or co-worker and promise to stick to your plan and budget. When you’re tempted to stray – and you will be – call your accountability partner or at least remind yourself that you’ll have to own up to your decisions later.
USE THE BUDDY SYSTEM: Don’t shop with friends or family members who are most likely to pressure you into sharing their over-spending habits. Instead, buddy-up with people who are thrifty, levelheaded and able to shop with more joy and less money.
JUST SAY NO: If a deal that looked great online or in an ad turns out to be not so great in person, walk away and choose a different gift that makes sense for you and your wallet.
A loanDepot licensed loan officer can help with these and any other lending questions. Call (888) 983-3240 to speak with one today.
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