All the discounts and offers put out around Black Friday are designed to make us buy. In behavioural economics it is known as ‘anchoring’ where we see the original price as the true value and so any discount sends a message that we are getting a deal. There are plenty of good tips on where to find the best deals so I thought what if we took it as an opportunity to think of the emotions behind spending and take charge of your wealth this Black Friday instead.
Use the opportunity to work out your goals for the start of the new year now
Why wait until January to set new year’s resolutions? Can you set aside some time to focus on what you want to achieve next year? What actions do you need to take to start putting these in motion? If you want to start investing, can you automate a sum of money to go in to your investment account each month? If you want to start paying off debt can you work out a strategy of which one you want to pay off first?
Check in with your emotions around money
We all have reasons why we are compelled to buy things. The narratives we tell ourselves around money are formed at young ages and so stopping before buying something and being mindful of why you might want to buy something this Black Friday can be helpful. Perhaps you were always given the best presents so associate expensive things with being loved or you always had to wait to get what you wanted growing up. This can sometimes prompt us to buy something because we can so checking in and getting awareness of where impulses may be coming from can be helpful. If you know you are impulsive, wait 24 hours and decide if you really want to buy it.
Map out your big expenses for the year ahead
Black Friday and the January sales can be a great time to get what you already need to buy. If you can set aside 10 minutes to work out what you want and need to buy then you can be purposeful with your spending. This isn’t limited to physical products, things like memberships and subscriptions can be discounted too. If you’re going to buy it anyway, go for it when it is on offer.
Can you save or invest the balance of what you would have spent?
It is great if you have any opportunity to add to your wealth, whether that’s in cash savings or putting into an ISA, JISA or General Investment Account. If you would have spent £200 on something but get it for £150, can you put that £50 towards one of your financial goals? These small actions add up and all contribute to your wealth in the future.
If you’re looking for help setting goals and keeping track of your wealth, my 3 month undated planner to improve well-being is now available to buy here so you can start as soon as tomorrow. If this article has made you think you’d like to chat about your relationship with money, book a call here or see how to work with me here