Black Friday has undeniably become a global phenomenon for business, be it from the professional or consumer perspective. On one hand, retailers benefit from an increase in purchase intent, while individuals are primed to use the season for bargain hunting.
Originally a US-specific event following Thanksgiving, more and more markets participate in this highlight of the shopping calendar. In 2019, it is estimated that sales managed to hit the $20 billion mark in digital channels alone.
In light not only of the current pandemic situation, but also from a general trend point of view, a question emerges: should Black Friday be done differently?
Iban Wallet believes so, and is working to contribute to a mentality shift around this driver of consumption patterns.
First of all, there is the matter of sustainability. It is widely known that the way resources are globally distributed and consumed need to be addressed. According to data from think tank Global Footprint Network, considering today”s global consumption levels, Humanity would require 1.6 planet Earths so that enough resources could be produced and for the waste to be absorbed.
It is then clear that there is a global and actual need to consume less. Conversely, events like Black Friday prompt behavior to follow a different direction. Good opportunities exist, and some can really be justifiable in the long run. On the other side of the coin, however, there are those purchases made on impulse and/or merely because the price was so alluring.
Looking at preliminary data for 2020, consumer comparison platform Finder concluded that 64% of Americans have experienced buyer”s remorse from items on sale, which is already an increase from the 49% in 2019.
To counteract this tendency, a focus on keeping and using our current items as long as possible should be cultivated. Besides being responsible from a sustainable standpoint, it also makes good financial sense.
Notwithstanding inflated original prices that give a false sense of bigger discounts, even when considering legitimate good deals, a discount will never result in saving money. Yes, it is possible to get necessary items at a better value, but an expense is an expense. In the end, an account”s balance will not increase, no matter how great the deal.
Which means that by not making (or further delaying) a purchase, a negative financial impact on personal finances can be avoided.
One question that may arise is what to do with funds that were originally destined for Black Friday expenses.
If by not buying one is able to cut costs, having those funds working towards worthwhile goals can contribute to an increased net worth. Hence, it is possible to shift perspectives from spending less to actually earning more through investments.
If we consider an overall amount of EUR600 being allocated to Black Friday (which is actually realistic, with Americans spending on average the equivalent of EUR778.02 in 2019, as per Finder data referred to above), it is easy to imagine how this could be working for one”s finances.
For instance, investing it instead at the projected 2.5% interest rate offered by the Iban Account could get you a total of EUR3,153.80 over the course of 5 years. And by holding off purchases, it is possible to aim for higher quality with more durability of both material or non-material assets, which can feed the growth cycle.
With that in mind, a different kind of Black Friday deal can be considered. In order to help an increasing number of people getting more from their money, Iban Wallet is running a series of special offers. To find all the ways you can make the shift from spending less to earning more, just follow this link until November 30 – 2020.
Iban is an online marketplace that offers investment opportunities at a projected interest rate derived from investment in loans from various lenders
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