Thrifty Thinking: Black Friday and How Rich People Think (it might surprise you!)

Here are10 tips for consumers from Steve Siebold, author of the book How Rich People Think, who is also a self-made multi-millionaire.

 

Siebold says in 2012, consumers spent a whopping $59.1 billion on Black Friday, creating a financial nightmare for many because of foolish overspending. 

 

His 10 tips to help consumers not break the bank this year:

 

·         When it comes to money on Black Friday, put your emotions on the shelf and let reason be your guide.

·         Don’t fall for marketing campaigns that make you feel as if you’re getting a great deal when you’re really not (i.e. buy it today – pay for it tomorrow) 

·         Allocate a certain amount of money for each person you plan on buying gifts for and don’t overspend by even a dollar.

·         Don’t even think of using a credit card unless you are 100% sure you can comfortably pay it off at the end of the month.

·         Don’t get caught up in the moment.  If your shopping cart is overflowing, step back, regroup and make sure you can really afford everything you plan to purchase.   

·         Remember that kids learn by example.  Even parents who have failed to reach their financial dreams can still teach their kids important lessons about money during the holiday season. 

·         There’s no shame in telling people that this year will be a lean holiday season when it comes to exchanging gifts.

·         Just like you would diet or exercise with a workout buddy to hold you accountable, shop with a friend or shopping buddy to help keep you spending below your means.

·         There are good deals to be had on Black Friday, but be mentally tough to know when enough is enough. 

·         Ultimately, ask yourself if you would rather have the short-term satisfaction of expensive material possessions, or the long-term results of financial freedom and abundance.