Holiday budgeting strategies that work

The holiday season brings a unique set of challenges.

Of those, let's all admit that we don't have a solution yet for the top festive season challenge: Mariah Carey and that song.

The next ones are family gatherings and boring office parties. Our personal financial consultants are highly skilled at many things, but they can't help you get a date with Dee from HR (unless her 'thing' is a tight budget, in which case, boy, do we have news for you). They also certainly can't help you find a way to avoid awkward family gatherings either.

But one challenge we CAN help you with is avoiding the three months of Janu-worry at the beginning of 2024.

If you've been around here for a while, you'll know that this is a topic we've written about before. But we're hitting it again because it's important.

And to make this year extra special, we've teamed up with our Velocity Club team of financial consultants to get the very best festive season financial hacks for you. We will ensure that your January is as laid-back as your Netflix bingeing session this holiday.

But before we get there, can we just say:

Eish, December is more expensive than ever before!

It's true. The economy is not exactly going in the direction that most of us would prefer right now, and as we all know, life has become pretty expensive.

And while the holidays are sure to cost you a bit, we need to keep our eyes on January if we're going to win this festive season. January is around the corner, and with it comes all of those debit orders and the usual January expenses. If you have kids, you may also need to buy stationery, uniforms, books, bus tickets and everything else to get your youngsters going.

Therefore, it's time to put your adulting pants on and get ready to budget because, without that, the joy of December can quickly turn into a traumatic January.

Unleash the experts

The recommendations you're going to read today are tailored to help you navigate through the festive season without compromising your financial stability in the new year. From smart shopping strategies to wise management of your December earnings (and bonus!), these insights are designed to equip you with the tools you need for a financially healthy holiday season and a worry-free January.

Let's dive in.

Neo's advice

Plan and budget for groceries

One of the major holiday expenses is groceries. Neo advises that you plan to buy in bulk to reduce the number of store visits and thus avoid impulsive purchases. He emphasised the importance of making a list (and checking it twice) (hey, if Father Christmas does it, so should you) and always seeking discounts.

Allocate funds for spoils

Set aside a specific budget for holiday treats and ensure you do not exceed this amount. This disciplined approach will allow you to enjoy the holidays while keeping your finances in check.

Travel smart

Group travel is a smart way to cut costs during the holiday season since you can all share the petrol and other expenses. But please be sure to prioritise safety when on the road. It's dangerous out there. And remember: friends don't let friends drink and drive.

Value family time over spending

Presents are super fun, but if we're honest with ourselves, we can all admit that the holidays are more about spending quality time with family and friends than extravagant spending. Focus on creating lasting memories rather than spending excessively. The January version of you will thank you.

Naledi's advice

Manage your December earnings wisely

Naledi's advice is to remember that your earnings in December have to last until the end of January. Whether this is your first or 20th December holiday, you'll find it's a very long 6 (or more) weeks.

Naledi advises you to lock away your savings before you begin your holiday spending. She also stressed the importance of not touching your emergency fund. And by not touching, she means it. Don't make her angry (trust us on that one).

Dumisa's advice

Strategies for better spending

Dumisa recommended that we all set a festive season budget. Allocate a specific amount for your holiday spending, and stick to it. Echoing Naledi's advice, Dumisa suggested you set aside money for January's expenses in a separate account.

If possible, save half of your early December salary towards January. This will take some discipline, especially when saying no to unnecessary expenses.

We're not promising that your friends will like it when you say no, but you'll be better off for it.

Nqobile's advice

Smart grocery shopping

Nqobile suggested always shopping with a grocery list to avoid buying unnecessary items. The best part about this advice is that it's applicable year-round because we all know how difficult it can be to rein ourselves in if we walk into the store without a clear plan! Let's face it - you go in there planning to just quickly buy a bottle of milk and a loaf of bread, and suddenly, you're arriving home with five slabs of chocolate, two magazines and a bulk pack of toilet paper. And you forgot to buy the milk and bread!

Tshego's advice

Compare prices for bulk purchases

When purchasing groceries in bulk, comparing prices across different retail stores is beneficial. Bulk shopping is increasingly on-trend, and many grocery stores now routinely offer bulk discounts. Shop around, and you could really score.

Avoid using credit for consumables

Avoid using credit facilities for consumables like food, alcohol, and gifts. This is a good habit to help us stay out of debt.

Live within your means

Living within your means can be a difficult practice to master, but it's especially important to do during the festive season when overspending can lead to financial strain later on, especially in January.

Let our team help you prepare for 2024

To kickstart your new year the right way, consider booking a session with our financial experts for January. It's no obligation and totally free, so you've got nothing to lose!

Schedule your free consultation. We’re standing by to meet you!

And finally, let's all keep in mind that careful planning, budgeting, discipline and wise spending are key to a financially successful holiday season. Happy holidays!