How to avoid overspending on Black Friday — smart budget tips

Every year Black Friday rolls around like a travelling circus. Bright lights, loud promises, a rush of bodies pouring into tents of half-price bliss. By the time the show is over, many shoppers stand among their spoils wondering how bargain hunting became a budget headache.

FNB reported processing more than R5.4-billion through its Speedpoint devices during the 2024 Black Friday period. Reveal, a consumer-spend analytics company that tracks transactions, recorded a jump of almost 33% in online spending in November 2024 compared with the previous six-month average.

Black Friday may be one of the world’s biggest shopping events, but it works much like other manufactured rituals. The tactics that push people to overspend on roses on Valentine’s Day or scented candles on Mother’s Day are repurposed to nudge open wallets in November. Black Friday is a psychological game and the only way to win is to understand the rules to protect yourself and your budget.

Mastering the money mindset

Rory Brachner, founder of financial advice platform Doshguide, says a mental reset is the first line of defence.

“Black Friday plays right into our psychology. The 50% off deal still costs you more than you would have spent. The illusion of saving is one of the biggest threats to consistent wealth building.”

He suggests reframing what a good deal really means.

“It is only truly good if it serves a real purpose in your life – something that aligns with your needs or goals or delivers long-term value. Otherwise it’s just another distraction dressed up as a saving.”

Planning and preparation

Black Friday shopping now stretches from early November or even late October. This gives consumers room to plan ahead.

Brachner recommends treating the event as part of a broader financial plan. His primary smart spending tip is to make a list.

“Identify what you genuinely need ahead of time and research prices early. This helps you to recognise a true deal versus a marketing gimmick.”

Wandile Mnguni, head of individual issuing at Nedbank, offers a practical budgeting tactic.

“Prefund your credit card or the account you are using to spend with the money you are looking at spending for the day, and set payment limits on your banking app that align with your budget,” he says.

Comparison shopping still beats clever marketing. Sanlam Credit Solutions business head Afua Darko suggests checking prices across multiple retailers and using simple tools like a notes app or spreadsheet to track differences.

Consumers can also tap into technology to maximise value. “AI tools can quickly compare prices across a wide range of retailers and help you to verify whether a ‘sale’ is truly a discount or simply a repackaged regular price,” Darko explains.

Avoiding the debt trap

The biggest financial mistake consumers make during Black Friday is overspending and taking loans to get the things they want, Mnguni warns.

Brachner advises consumers to use cash or a debit card where possible.

“Spending on credit can quickly erode discounts once interest is factored in. If you can’t pay it off immediately, it’s not a saving,” he says.

Darko warns that using debt to fund unplanned spending often turns one-off deals into long-term costs. She gives the example of buying an entry-level laptop costing R4,159 in cash.

Paid for with credit at 21% interest over 12 months, it would cost R5,030 in total, resulting in an additional cost of R871. “A deal is only a deal if you can pay the full amount within the stipulated period,” she says.

Although credit cards can be recommended for rewards, Mnguni suggests that this only holds true “if you can prefund first and not dig into the credit limit for the purposes of Black Friday”.

Impulse control and wealth building

Another simple technique Brachner recommends is the 24-hour rule. “Before checking out, wait a day. If it still feels like a worthwhile purchase [then], it probably is.”

He also warns against herd-driven shopping. “‘Everyone’s buying’ is not a good reason to spend. Deals will come again, but debt lasts longer.”

The final trick is redirecting avoided spending. Brachner notes that every skipped impulse buy preserves money that could be saved or invested. “Delayed gratification is one of the most powerful wealth-building tools we have,” he says. “Redirect your savings. Take the money you would have spent impulsively and invest it, even if it’s just a few hundred rand. Over time, those small decisions add up.” DM

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.