Here’s your cheat sheet for a debt-free festive season

After spending all our money (and credit) on Black Friday, we can all do with a little help to draw up a cheat sheet to ensure we have a debt-free festive season.

Chris Coetzee, CEO of FinFix, says firstly we must consider that a report indicates that a significant percentage of South Africans, as high as 40%, admit to going into debt during the festive season, with many struggling to recover for months.

“The good news? With a realistic holiday budget and a few strategic behaviour shifts, you absolutely can enjoy the festive season without financing it on credit,” Coetzee says.

ALSO READ: How to avoid debt ruining your sleep this festive season

This is how to do it:

1. Start with January, not December

The common mistake is budgeting only for December’s delights, Coetzee says and points out that you should reverse your thinking entirely by listing January’s essentials first.

Then add your rent or bond, electricity and water, transport and petrol, school fees, uniforms and stationery, existing debt instalments, insurance premiums, groceries and child-care. Ringfence the cash for these expenses as soon as you can.

If your salary is paid early in December, consider immediately paying these bills or setting aside the exact amount in a separate, untouchable account or even in a physical envelope.

2. Know your true festive cash

Only count money that is already in your account or guaranteed: your salary, 13th cheque, confirmed bonus, or stokvel payout. Ignore “expected” overtime or a promised side-gig until it is actually paid.

Studies show that over-optimistic financial planning is a leading cause of overspending. If your total festive cash after ringfencing January essentials is R6 000, that is your entire holiday budget for gifts, food, travel, entertainment and giving. “No more, no less,” Coetzee says.

ALSO READ: Senior citizens warned to be extra careful to protect their money this holiday season

3. Build a simple, working holiday budget

Once you calculate your true festive cash figure, split it into clear, non-negotiable categories like this:

• Food and entertaining: R2 000
• Travel or family visits: R1 000
• Experiences, such as outings, movies and events: R800
• Giving to charity or extended family contributions: R700

Choose ceilings for each category, Coetzee says. “Then, pressure-test each line: if you allocate R2 000 to travel, what gets cut from gifts or entertainment? A budget only works if it forces realistic choices.”

4. Use the cash-first rule

Credit is more expensive than ever. With the repo rate at its highest in years, a store card special or a “buy now, pay later” (BNPL) option may look harmless, but the interest and fees quickly turn a R500 gift into an R800 regret, Coetzee warns.

Consider these practical, cash-first alternatives:

• Lay-by instead of credit for big-ticket items.
• Use your loyalty points to subsidize groceries and gifts. These points are essentially pre-paid cash.
• Plan gift exchanges, such as Secret Santa with a firm, agreed-upon price cap.
• Agree as a family on experience-based gifts: a hike and picnic, a braai, or a DIY game night.

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5. Budget for back-to-school now

Back-to-school costs erode January budgets more than most other factors. Families can spend thousands on uniforms, stationery and school fees, often leading to emergency loans.

Make a mini budget for uniforms, shoes, stationery, textbooks, transport and lunchbox items. Start buying essentials in December using cash, loyalty points, or lay-by if needed. If you are in a stokvel, allocate a portion of the payout to school costs before anything else.

6. Trim the travel

Festive travel is often the biggest swing factor in holiday budgets. If flights or long drives threaten to derail your financial plan, consider:

• Day trips and local experiences rather than multi-night stays.
• Carpooling and off-peak travel days to save on fuel and tolls.
• Self-catering and potluck meals with family, sharing costs upfront.

ALSO READ: Now that you submitted your tax return to Sars, what comes next?

7. Embrace three behaviour guards

These simple habits can make a monumental difference:

• One-day delay rule: Wait 24 hours before buying anything non-essential larger than 10% of your monthly income. Most “wants” fade when given time to cool off.
• Do a weekly 15-minute budget check: Every Sunday, tally what is left in each category. Adjust your spending for the week ahead before the money disappears.
• No-spend days: Lock in two or three days a week of zero discretionary spending.

8. Watch the sneaky costs

Data and streaming upgrades, last-minute outfits, “quick” store runs and delivery fees add up faster than you think. These micro-transactions can quietly drain hundreds, if not thousands, from your budget. Unsubscribe from marketing emails and mute “deal” notifications until January.