When to buy, and when to ignore

RETAILERS entice shoppers to visit their outlets and websites all year round, but marketing reaches fever pitch this month.

It starts with Black Friday in November, which evolves into Cyber Monday and then special offers gather momentum with pre-Christmas sales.

The festive-season frenzy morphs with sales pitches changing to clear holiday stock in the new year, followed by back-to-school specials in January.

How do you differentiate between scoring a great deal and buying on impulse that you will regret later on?

What is a sensible purchase and what will leave you with debt?

Whether you are a traditional shopper who reads about supermarket specials in community newspapers or pay a subscription service to a global online retail brand, you will be tempted to spend and, sometimes, possibly to your detriment and your family’s.

When looking to bag a true bargain, the key is to differentiate between

your wants and needs.

Do your homework before making a purchase.

Determine your values and keep your financial goals in mind. You will stand a better chance of building the lifestyle that you hope to attain.

Here are tips to help you sidestep the “never-to-be-repeated” offers and spot real value-for-money opportunities.

Focus on your aspirations:

You may dream of a university education to kick-start your career or about buying your own flat.

Knowing your priorities will help you focus on your true goals, instead of being side-tracked by tempting offers.

Compare prices: Shop around first if you have decided that an item is a good buy. There are numerous sites that showcase the best daily deals in South Africa. There are also clearance sites with stock overruns from previous seasons plus factory outlets and distribution centres.

Differentiate between good and bad debt:

Major purchases often require a loan. Understand the difference between good debt – such as a loan to revamp your house and increase its value – and bad debt, such as buying the latest fashion on credit. Avoid short-term, high-interest loans that could take months to repay.

Read the fine print: A South African consumer has the right to receive goods in working order, free of defects. Keep packaging and proof of payment. If you experience problems, contact the store as soon as possible. Bargains may come with specific terms such as “No returns” on sales goods. Check the terms and conditions of the sale.

Shop at reputable outlets:

This will increase your chance of obtaining quality goods, instead of counterfeit replicas that soon fall apart. Read the customer reviews.

Be wary of scams: When searching online for bargains, use strong passwords. Pay with a credit card or a well-known payment platform. Some public wifi hot spots are not secure, so use data from your network provider instead.

Also, when hunting for a good deal, keep your saving, investment and lifestyle goals in mind. If a great offer becomes available, you are more likely to recognise it and have the means to acquire it.

For example, you may have searched for a home in a favourite neighbourhood, then hear of a new development where you will avoid transfer fees. This could be a special offer that has longterm benefits.