Understand your shopping personality this Black Friday to maximise savings and investments

As Black Friday approaches, shoppers across South Africa are poised to dive into the frenzy of discounts and deals.

Yet, how we engage with sales reveals much about our financial habits.

Steven Amey, a personal finance expert and Head of Intermediated Distribution at Ashburton Investments, highlights four distinct shopper types, each with a unique set of strengths, weaknesses, and methods for maximising their financial potential this holiday season.

The Impulse Spender

Impulse Spenders thrive on the thrill of snagging the latest trends, often driven by a Fear of Missing Out (FOMO). Their enthusiasm can be harnessed positively, leading to significant financial growth.

• Smart Money Moves: Initiate a small monthly debit order into a flexible savings account to pool funds for annual Black Friday splurges. Aim to save around 60% of this amount yearly.
• Turn FOMO into investment curiosity by exploring trending sectors like green energy and crypto. Utilise exchange-traded funds (ETFs) for a calculated investment approach.
• Start small and maintain consistency. Investing even a few hundred rand monthly can yield impressive growth over time.
• Portfolio Tip: Allocate 40% of savings in low-risk investments and 60% into balanced funds, including higher-risk options to satisfy their investment needs.

The Cautious Thrill-Seeker

Mixing excitement with calculated decision-making, Cautious Thrill-Seekers are meticulous researchers who enjoy a balanced approach to risk.

• Smart Money Moves: Continue saving regularly and reinvest returns to leverage the power of compound interest.
• Focus on diverse portfolios, mixed with speculative assets like venture capital and green technology for a thrilling yet secure investment experience.
• Long-term goals (5+ years) should govern their financial strategies, rewarding their patience with gradually increasing wealth.
• Portfolio Tip: Suggest allocating 75–90% to a balanced portfolio, with 10% in income funds for Black Friday, and the remainder in speculative investments.

The Aspiring Wealth-Builder

This disciplined personality prioritises savings and wealth creation, often envisioning their financial future.

• Smart Money Moves: Maintain focus on long-term objectives like retirement. Tax-free savings accounts can enhance returns.
• Exploit less liquid investments such as physical property or private equity, and consider offshore investments to diversify currency exposure.
• Portfolio Tip: Invest 70–75% in equities for growth, while diversifying across other asset classes with 5% in cash for spontaneous purchases.

The Highly Disciplined Investor

Highly organised and cautious, these investors have a well-established financial routine, yet they may benefit from branching out into new investment opportunities.

• Smart Money Moves: Ensure a solid plan for long-term objectives, including a retirement strategy and an emergency fund.
• Encourage exploration of adventurous assets like venture capital, private equity, or collectibles. Considered exposure to offshore investments will open doors to international opportunities.
• Portfolio Tip: A healthy growth-focused portfolio typically features 70–75% equities, balanced with diverse asset classes for stability.

The Real Black Friday Win

No matter your shopping personality, the ultimate victory this Black Friday is a more secure financial future. As Amey emphasises, balancing spending habits with smart investments can lead to both enjoyment today and wealth building for tomorrow. Before diving into investments, however, engaging with an accredited Financial Advisor is crucial to ensure sound decision-making.

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