Holiday budgeting and planning tips

After another tough year, the December break is a chance for most to let loose, indulge and have a fun time with family and friends, away from daily stress and routine. With the increasing cost of living, the negative outlook for the SA economy, and the lingering effect of Covid, South Africans are being forced to tighten the purse strings. As much as we all want to throw caution to the wind when it comes to spending over the holidays, here are some practical tips to avoid overspending and a dreaded “Janu-worry”.

1. As these are budgeting tips, let’s start with setting an actual budget! A bit of planning ahead might avoid blowing all your savings and even going into debt. If you have a partner or spouse – spend some time together discussing the plans for the holiday. Print out a calendar and set a budget per category: whether it’s fuel or travelling costs, Christmas presents, bonuses for helpers, groceries and dining out, tithe or charitable donations. Actually, setting it out on paper or a spreadsheet and discussing this with your partner, can make sure everyone’s expectations are managed for the holiday and deciding on who is covering what expense. Categorise your expenses: transportation, entertainment, food, and miscellaneous, giving some room for unexpected or spontaneous spending.
2. Still continuing with the calendar – plan out certain days where you will be “self-catering” and the days you will be eating at a restaurant. Setting a limit per meal per family can then adjust expectations as to how many times you can go to a restaurant. Take into consideration extra groceries needed for any special holiday meals, also check your freezer if there is any meat you can take along to make use of instead of having to buy more. If you are holidaying in a big group, assign meals per couple or family – it spreads responsibility to do the shopping, cooking and clean up and then everyone gets a turn to also rest.
3. If you have children and you are planning on a beach holiday, you will be spending money on ice creams, cold drinks, chips you name it – it’s guaranteed. Get the kids involved in budgeting – allocate an amount, in cash that they can manage safely, for them to use for these extras. Buying some of these items in bulk such as drinks and snacks and then packing your own cooler box on outings can reduce unnecessary spending.
4. Moving on to a big expense for most over the holidays: gifting. Consider “needs” vs “wants” when gifting over the holidays. Instead of expensive toys in which interest will fade quickly, guaranteed, consider an activity that can form part of your holiday outings, and then exchanging small gifts. If celebrating in a big group, look into doing a “Secret Santa” with a set budget, where the adults only need to then buy one present – this cuts down time in the shopping malls and spending considerably. Or alternatively, declare this year “gift-free”, it is definitely the more environmentally and purse-friendly option.
5. If you receive a 13^th check or a bonus – a strong suggestion is saving a percentage for long-term savings goals (as difficult as that might be) or paying off debt, and then transferring some of it to a savings pocket or similar account for back to school expenses and the end of January stretch.
6. On a more important note: make sure you have a will in place before you head out on holiday. Ensure that someone, who is not travelling with you, knows where it is held and who to contact if the worst were to happen. Also set up all emergency contacts on your and your partner’s phone: medical emergency details, insurance contact numbers, security company details, and bank contact details in case of lost cards.
7. Before heading out for a road trip, make sure your vehicle has been for a service, the oil levels and wheel alignment and spare wheel have been checked. Unexpected expenses related to a vehicle breaking down could put a damper on your budget. Double check with your motor vehicle insurance company in terms of roadside assistance – if available, have those details on your phone. To avoid unnecessary traffic fines, ensure that your licence disc is up to date and stick to the speed limit.
8. Start planning and setting savings goals for next year’s holiday – it might make it easier to pay off a holiday over 12 months than all in one go. A little planning ahead can make next year’s break even more enjoyable.

Terms like “savings” and “budget” are not synonymous with fun over the festive period, but hopefully, by applying some of these tips you can enjoy your holiday without placing financial strain on the year ahead. No matter what your plans are this December, if you are travelling, staying at home or working (thank you retail workers!)– may it be filled with some rest and quality time with loved ones.