What the Reserve Bank would like you to do this Black Friday is probably not spend your money.
It’s the most wonderful shopping weekend of the year.
Discount sale posters cover the windows of every shop and people with already-too-many bags to carry rush in to get the best deals in the lead up to Christmas.
This is our first “normal” Black Friday since the pandemic began.
But Reserve Bank Governor Adrian Orr may well be sitting in his office with a sweat on.
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Instead of the government telling us to stay home to stop the virus, this week Orr told us to stay home – or at least spend less – to reduce inflation.
Here’s how you might be able to satisfy both the governor and your Christmas shopping list.
Just bought one thing this year
Don’t fall into the over-indulging, mass consumption trap this year and just snag yourself to one thing.
Or only buy things you actually need, instead of getting sucked in by the sale signs.
ASB senior economist Mark Smith talks about spending trends, and expectations for Black Friday.
And yes, this is a tough one. Especially when the deal seems so good that you can’t resist it.
Swap buy-now-pay-later for save-now-pay-later
Economist Brad Olsen says, if you think buy now pay later is good, you’ll definitely want to try to save now pay later.
“Those mortgage rates are rising, and you’ll want to make sure that’s one repayment you don’t miss,” he said.
Not racking up other debt at the moment is probably a good idea.
Monopoly is not only a great game to risk family harmony with, it is also a fun way to keep spending money and buying property, without contributing to inflationary pressures or experiencing the downturn in the housing market, Olsen jokes.
“Perhaps Monopoly sales will rise today.”
Those in Southland must have already got the memo – the new one Southland Monopoly game is on the verge of selling out before it has even been launched.
Just because something is on sale, it does not mean you have to buy it
Say it with me: “Just because something is on sale, it does not mean you have to buy it.”
Those are likely the words of Orr as he mixes some magical money potion to stop people spending.
But it’s true. Just because something is on sale, it doesn’t mean you HAVE to buy it, nor are you necessarily getting a good deal. Those pants on ASOS that are 4% off – leave them out of your cart.
Say it with me one last time: “Just because something is on sale, it does not mean you have to buy it.”
Go overseas and spend your money there instead
Contribute to other countries’ local inflation instead of ours, and clamber through the airport with so much shopping it looks like you’ve robbed a mall.
Then be forced to pay for an extra suitcase because there are only so many winter coats you can wear on the plane before you need to pay for an extra seat.
It’s again, the most wonderful time of the year, but at this rate it can wait until 2024 when the supposed looming recession is over.
No presents under the tree, only food on the table and family around it. Maybe even a lump of coal if you’re lucky.
Yoo hoo, big summer blowout
Perhaps this is the weekend is the “final hurrah” of spending for the country, and like the famous quote from Disney’s Frozen it’s our “Yoo hoo, big summer blowout”, Olsen said.
“If we’re needing to see demand restrained in the economy, maybe Black Friday sales are New Zealand’s big summer blowout, a little bit early.”
“With lots of deals on, perhaps today and this weekend are the final hurrah of frenzied spending – then it’s time to rein it in and keep that wallet closely protected.”
Or just ignore the fact that there is a recession looming and spend your money. It’s been a tough year. Treat yourself, you deserve it.