How Should You Spend Black Friday?
Skip the lines and put your money to better use
Black Friday is the pinnacle of American consumerism. Every year, you see stories on the news about people lining up the night of Thanksgiving in order to get those door deals bright and early Friday morning.
I love finding great shopping deals as much as the next person. But when you get home on Friday with a bag full of goodies, all you will have are bags full of liabilities.
Remember, liabilities are things that take money out of your pocket. Assets put money back into your pocket. Liabilities lose value over time, while assets continue to accumulate wealth. Everything on sale at the mall on Black Friday is a liability.
On Black Friday, people are so focused on the savings that they don't realize that they're not really saving at all. They're still spending tons of money on liabilities, even if they are marked down.
So this year, instead of getting up at four in the morning to wait in line to spend money on liabilities, consider spending your Friday putting your money to better use. Below are five alternate ways you can spend Black Friday.
1.) Invest in assets
This Black Friday, skip the liabilities and invest in assets that will put more money back in your pocket.
Remember, the key word when investing in assets is "cash flow." You want to invest in things that will generate extra cash every month.
My favorite investment vehicle for cash flow is real estate. If you can find and source a good deal for a solid building in a great location, the rent you receive from that asset can be extra cash flow into your pocket every month. Robert and I have written books and designed courses to help you learn how to do this. This Black Friday, consider signing up for our Real Estate Webinar, and start learning how to put money back in your pocket just in time for the holidays.
Here's the best part of investing in assets: you can use the passive income your assets generate to buy all your holiday gifts. Instead of digging into your savings or getting into debt by overcharging a credit card, invest in an asset that will generate cash flow that you can use specifically to complete your holiday shopping list.
2.) Donate to charity
As the saying goes, "Give and you shall receive." It seems like a counterintuitive idea, but I've found the wealthiest people I know make room to give back, even when they were first starting out and had almost no money.
One line of the Rich Woman's Creed is "I am grateful," and Thanksgiving is the time of year when this line is most important. It's the time to count your blessings, give thanks for all you have, and give back to those in need.
Sharing what you have, and lifting up others, is far more rewarding than standing in line for hours, and shoving people aside to get to that special sale. Even if you don't think you have enough money to make monetary donations, you can still donate your time. Spend Friday helping out in the community, and spreading love to those around you.
3.) Teach your family and friends about financial freedom
Thanksgiving is when family and friends come together to give thanks for one another and spend time together. Maybe your Thanksgiving tradition includes touch football in the backyard, or naps in front of the TV after dinner. This year, between the turkey and the inevitable political discussions, make time to discuss financial freedom with your family and friends.
A lot of people will shy away from that idea. Talking about money at Thanksgiving? No thanks!
But Thanksgiving might be the perfect time to bring up a discussion on money. With New Years on the horizon, and people starting to think about setting goals for 2017, why not start the discussion with your friends and family about financial freedom?
You can start small. After all, no one likes the family member who comes to dinner and brags about how thankful they are for their sports car and thriving portfolio. This discussion shouldn't start with you, but with your loved ones.
Start by asking questions. What would your perfect year look like for 2017? What would you like to be thankful for at next year's Thanksgiving? What can you do now to make sure that vision comes true?
If you come at it from a caring standpoint, and not an intrusive one, you can get the wheels spinning for your friends and family to make a change in their financial strategy.
4.) Start your business
Be on the receiving end of the holiday shopping mayhem and start your own business selling online.
This is the best time of year to start your business, particularly if you are selling a product online. As holiday shopping picks up, people will be scouring the Internet looking for that perfect gift for Cousin Mary and Uncle David, and you might just be the one to give it to them.
Maybe it's too late to start your business in time for Black Friday or Cyber Monday, but there's still plenty of time to get an online business up and running for the holidays. Platforms like Etsy and Amazon are the perfect place to start selling gifts that other people would love to give.
This weekend, instead of spending your time and money at someone else's business, get your plan together to start your own business.
5.) Invest in your financial education
The best gift you can get yourself is financial education. It's the gift that keeps on giving. That kitchen appliance you bought on sale or the two-for-one deal on cute blouses will all lose their value the minute you leave the store with them. But financial education is the one thing you can buy that will only increase in value with time.
Financial education comes in many forms. There are hundreds of books that range from very broad financial topics to extremely narrow investment practices. At Rich Dad, we have a range of webinars and coaching sessions you can sign up for that will help you learn about improving every area of your financial strategy.
Find a mentor and treat them to a post-Thanksgiving coffee. Pick their brain about your financial goals and how to achieve them. Learn from their wisdom.
What other classes or education are out there that can help you increase your knowledge? Start researching this weekend and get your plan together to fill the holes in your financial education.
I am thankful for a lot this holiday season. Friends, family, my husband Robert. But most of all, I'm thankful that I'm in a business I love, giving back and helping others achieve their financial dreams.
What are you thankful for this year? Is financial freedom on the list, or are you still working towards that? What can you do this year that will help you be toasting your financial success over next year's turkey?