Why Black Friday 'savings' could be costing you more than you think

As South Africans gear up for Black Friday’s annual rush of ‘unmissable’ or ‘unbeatable’ deals, the promise of saving big often masks a more expensive truth - most shoppers end up spending more, not less. The thrill of discount shopping can quietly erode long-term wealth.

 Black Friday is one of the largest shopping events in South Africa, with many retailers and businesses reporting increased sales during this period. Both Nedbank and FNB reported an increase in the number of customers transacting during Black Friday 2024, with FNB processing transactions worth more than R5.4 billion through its Speedpoint devices, up 11% year-over-year.

 Black Friday plays right into our psychology. We see 50% off and feel like we’re saving money, but what’s really happening is that we are often spending money we hadn’t planned to spend. 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.

It is not about avoiding the sales altogether, but instead shifting from impulsive, bargain-buying to intentional, value-based spending.

It’s about taking control of how you spend so that your money supports your goals, not just your impulses.

Reframe your thinking of a ‘good deal’ as it is only truly good if it serves a real purpose in your life - something that aligns with your needs, goals, or delivers long-term value. Otherwise, it’s just another distraction dressed up as a saving.

It’s easy to justify a purchase when it’s on sale, but frequent bargain-hunting shopping can quietly sabotage your investment potential. Each impulse buy, even if small, chips away at money that could have been saved or invested - funds that, over time, could have compounded into meaningful financial growth. Delayed gratification is one of the most powerful wealth-building tools we have.

When you work with a financial planner, these moments can be built into your broader financial plan, giving you the freedom to spend consciously, without the guilt or any financial fallout. True financial control means your money is always working for you, even on Black Friday.

5 smart spending tips for this Black Friday:

 Make a list: Identify what you genuinely need ahead of time and research prices early. This helps you recognise a true deal versus a marketing gimmick.

Use cash or debit 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 savings.

Avoid FOMO purchases: Everyone’s buying” is not a good reason to spend. Remember: deals will come again, but debt lasts longer.

Apply the 24-hour rule: Before checking out, wait a day. If it still feels like a worthwhile purchase, it probably is.

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.

* Brachner is the founder of Doshguide.

PERSONAL FINANCE