Expert's warning as Aussies set to spend over $10 billion in EOFY sales
Brace your bank accounts, as sales season is almost upon us.
Aussies are expected to drop an estimated $10.5 billion on end of financial year (EOFY) sales this year – an increase of $400 million on last year, according to research by the Australian Retailers Association (ARA) and Roy Morgan.
The average shopper will shell out $1714 in the mid-year sales – that's $76, or 4.6 per cent, more than last year, with men expected to spend $2044 – $614 more than women.
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Aussies are expected to drop an estimated $10.5 billion on the EOFY sales. Getty Images/iStockphoto
So with PayPal Australia estimating seven out of 10 Aussies will hit the sales, which start in June and continue into July, we asked finance expert, author and She's on the Money podcast host Victoria Devine to share her top shopping and savings tips with 9honey – including when to avoid the sales completely.
Devine overcame her own debt to become a financial adviser with a successful business, even making Forbes' 30 Under 30 list for Asia in Media, Marketing & Advertising in 2021.
The author of three books now hosts a successful podcast to help others take control of their money.
She was not surprised to learn consumers are planning to spend more at this year's mid-year sales.
"With the cost of living still so high, shoppers are using sales events to stretch their money further," she said.
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Finance expert Victoria Devine recommends setting a budget before hitting the sales. Instagram/@victoria_devine
"More than half of Australians wait for major sales to buy essentials and nearly 80 per cent try to avoid paying full price if they can.
"A lot of people are becoming more strategic with their spending. If you know you'll need something soon, grabbing it while it's discounted just makes sense."
Her top tips for preparing for the sales are setting a budget and making a wish list.
"I always say to go in with a wish list and a clear budget so you're only buying things you actually need," she said.
"Sales can be overwhelming, so having a plan helps you stay focused.
"If it's not something you've already been thinking about or planning for, it's probably not worth buying just because it's on sale."
She also recommended waiting 24 hours before making a big purchase.
"If it still feels worth it the next day, it's more likely to be something you genuinely need," she said.
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Victoria Devine made a career out of giving financial advice. Instagram/@victoria_devine
But Devine warns against hitting the sales if you're already financially strapped.
"My biggest rule is simple – if you can't afford to pay for it upfront, don't buy it," she said.
"Use savings where possible, set a spending limit, and avoid putting things on credit unless you know exactly how and when you'll pay it off.
"If you're already in debt or don't have the money to pay upfront, it's probably not the right time.
"Just because something is on sale doesn't mean it's a smart purchase. If it wasn't something you needed before the sale, you probably don't need it now."
For those who can afford it, she recommended buying "everyday items you'll actually use, like cleaning products, pantry staples or kids' essentials".
"Stocking up now can save you from paying full price later," she said.
And while it might be tempting to purchase luxury clothing, shoes and homewares, she suggested concentrating on everyday items including affordable homewares, kitchen appliances, baby products and storage items that "tend to get really decent discounts".
"Those are the types of purchases that can offer great value long after the sale is over," she said.
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"Stocking up now can save you from paying full price later," says Devine. Getty
Devine was speaking to 9honey ahead of Amazon's Prime Day sale, which stretches for a week from July 8-14.
"The good thing about a longer sale period like the seven days of Prime Day is that it gives people the space to make considered decisions," she said.
Like everyone else, she has good and bad experiences with buying on sale.
"I've had my fair share of both," she said.
"The best purchases are always the ones that get used regularly and make life easier.
"On the flip side, my worst buys have definitely been things I thought I might need, especially in the early parenting days."
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
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