How to financially prepare for the festive season
We are entering the last stretch of the year, and it's time to get financially ready for the December holidays.
We've reached the last stretch of 2025, and it's time to think about your festive season financial planning.
December is around the corner, and if you take some time now to plan your finances, you can have a stress-free holiday.
We all know the saying: if you fail to plan, you plan to fail, and we couldn't agree more, primarily because more and more South Africans are relying on credit to meet their day-to-day needs.
It's time to take control of your spending before the festive rush begins.
How can I prepare my finances for the December holidays? Here are some practical tips:
1. Start saving
If you haven't already started a holiday savings fund, now's the time to start. Many people are struggling to make ends meet, but we also encourage you to try to save some money where possible.
The money could be used to pay towards your debt at the end of the year or even as an emergency fund. Practice the 50-30-20 rule made popular by Elizabeth Warren in 2006.
Half (50%) of your income should be allocated to fixed expenses (rent, utilities, food, school fees, etc.)
Approximately 30% of your income should be allocated to lifestyle expenses like cellphone contracts, clothing or entertainment.
While 20% should be immediately deposited into your savings account. This could be an emergency fund.
2. Reduce your expenses
If you choose to follow the 50-30-20 rule, then you could shift the 30% allocation to your "Januworry" fund. This money could go towards school stationery, uniform or school fees.
You don't have to cut down on the luxury, just reinvent it. Instead of buying out once a week, have a burger night or pizza evening at home. This will help save you money and also allow you to bond with the family.
3. Be a savvy shopper
Instead of waiting for the peak shopping times, look out for sales like Black Friday or Cyber Monday, for gifts or household purchases.
You can compare prices online before making your purchase. You can even get a bargain if you decide to negotiate for a better price. Buy in bulk if you know what you are preparing for this holiday season. Usually, this works out cheaper, but be wary of expiry or sell-by dates.
4. Save on your rewards or loyalty
Many retailers and banks offer rewards when you purchase throughout the year. Review your savings on your rewards cards and keep these for January?
Some retailers offer cash back each time you make a purchase, which you can use at a later time.
5. Avoid getting into more debt
Times are tough, but try to avoid getting into more debt by paying off debt. Think about how you can budget your income so that you reduce your non-essential spending and put that money toward paying off your larger expenses.
Paying off your car's balloon payment or home loan.
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