Financial Success on Black Friday

The humor and irony here is that Black Friday originates in Philadelphia of all places. I lived in Philly for a short stint many years ago, and I can say that this origin is perfectly fitting for the city.  

Further, the description of the chaos during the 1950s is strikingly similar to the mayhem we’ve all grown accustomed to over the years. Back then, people were flocking to the streets primarily for football. Today, it’s for big screen TVs.

I wonder where this intense zeal comes from on the day after Thanksgiving. Perhaps there is something in all of that turkey meat that drives us a bit mad. Or, maybe it’s pent up rage from dealing with the in-laws for too long. The world may never know.

Whatever the cause, we see this frenetic energy lead many people into financial trouble as they run out (or in – via the internet today) to catch the hot deals. 

A survey by Self Financial Inc found that 42% of respondents reported regretting their Black Friday Purchases. In a different study administered by Creditcards.com – 40% respondents admitted that they would be willing to go into or add to existing debt to fund their holiday purchases.

Our collective alarm bells should ring anytime we see the words debt and regret mentioned in the same paragraph because this is a clear indicator of potential trouble. There is a better way forward to avoid any financial issues stemming from Black Friday. 

Here is my personal approach from the last few years as I focused on my goal of becoming debt free and winning with my own money. 

Have Important Goals

Having one or two really big goals in life is important. I mentioned that we all need problems, and pursuing a major goal is a form of a problem that can excite us to get out of bed each day and keep pushing forward. An overarching goal can also serve as a guiding compass for your decision making. 

My overarching goal in life is to have as much freedom as possible on a day to day basis. To achieve that goal, I needed to get out of debt so no one could have a claim on my hard earned money. Getting out of debt was actually a sub goal that helped get me one step closer to my main goal. 

Your goal may be to save up for a dream vacation, pay for college, or buy your next vehicle with cash. Others may want to save up a hefty down payment for a home, or buy a nice gift for their spouse.  

Whatever the goal may be, it needs to be established and prioritized as the most important thing in your life. This makes the next steps easier to tackle. 

Sit On The Sidelines

Sometimes it’s best to just watch the madness from the sidelines as a spectator. I sat on the sideline from 2018 until now as the Crypto market went boom and then bust. It was difficult to sit idly by as close friends became millionaires and as the general masses dove in to stake their claims. I did the same during the recent real estate frenzy. I just sat things out and focused on my plans while seemingly everyone around me caught housing fever. 

I’ve managed to complete my goals without deviating from the course and am satisfied with the results although there were times when I got antsy with my student loan lump sum as it grew in my savings account. I never bought the latest coin or a place to call my own, but I don’t feel that I’ve missed out on anything.

A key practice of living a rich life today is being able to focus on your life and goals while avoiding FOMO.

Spend Only Cash You Have On Hand

If you are broke, you really shouldn’t be spending much money on discretionary purchases. If you have something that is closer to a real need, then I suggest you only use actual cash that you have at the moment of purchase. 

Some try to short circuit a lack of cash by floating debt on a credit card with intentions to pay the bill before the due date. I don’t recommend this route since you literally don’t have the money at the time of purchase and therefore cannot truly afford the expense.  

To Break Broke, you must move away from walking the financial tightrope and playing debt games. 

Only Buy True Needs

I’m in the market for two items that have been on my list for several weeks now. The first is a high quality camera that I can use to enhance the podcast. The second is a pair of weightlifting shoes that I need in the gym to properly perform fitness movements. 

Are these absolute necessities? Probably not. 

I’ve already created and released podcast material without the camera, and I don’t really have a clearly defined plan for how I will incorporate video yet. The weightlifting shoes are closer to a true need since they will allow me to move in correct ways during exercise. But, I’ve gone this long without them and could probably go much longer just fine. 

I could rationalize these purchases like crazy, but in reality, both items are really just nice to haves. 

This is the type of analysis I recommend you all do before making purchases. The key here is to be brutally honest with yourself and remove emotions. There is that little kid in all of us that wants what it wants – when it wants it, but the adult in us must take over command of the ship. 

There you have it. A solid process for financial success on Black Friday while avoiding debt and regret. What’s your best strategy for navigating holiday spending?