December is full of good things: time off, family, travel and shared meals. It is also expensive, and January arrives with school fees, uniforms, stationery, transport and a long wait until the next payday. Planning now, in October, gives you time to spread the cost instead of scrambling for credit later.
Step 1: Write down the real December costs
Many people budget for gifts and food but forget the rest. Make a list that includes:
- Travel home, including fuel, tolls or taxi and bus fares
- Groceries and braai or celebration food
- Gifts and money for relatives
- Clothing and shoes for the family
- Entertainment and outings
- Extra data, airtime or electricity when everyone is home
Add a 10% buffer for the things you forgot.
Step 2: List the January costs
January is where the hangover happens. Include school fees, uniforms, books, stationery and transport. Add any annual payments such as insurance renewals, licence fees or subscriptions that fall at the start of the year.
Step 3: Work backwards from the date
Take your total and divide it by the number of paydays between now and the date you need the money. Set that amount aside on each payday, ideally into a separate savings account, a stokvel or a bank fixed deposit where you cannot spend it easily.
| Total needed | Paydays left | Set aside per payday |
|---|---|---|
| R6,000 | 3 | R2,000 |
| R6,000 | 6 (e.g. paid fortnightly) | R1,000 |
| R3,000 | 3 | R1,000 |
Step 4: Look at alternatives before borrowing
If there is a gap, consider these options first:
- Layby or store payment plans for gifts and clothing.
- School payment plans. Many schools allow fees to be paid in instalments if you ask early.
- Selling unused items online or to neighbours.
- Scaling back: a smaller gift budget or a shared family meal rather than everyone buying separately.
When does borrowing make sense?
A loan can help if the cost is genuine and unavoidable, such as school fees, and you have a clear plan to repay it. It makes much less sense for luxuries you cannot afford. If you do borrow:
- Borrow the smallest amount you need.
- Choose a registered lender and compare the total cost of credit.
- Make sure the instalment fits your January and February budgets, not just December.
- Check that you can settle early if extra money comes in.
Watch out: a loan taken in December starts costing you in January, when your money is already stretched. Count those instalments in your budget before you accept.
Key takeaways
- Budget for both December and January, not just the celebrations.
- Start saving now, even small amounts, and put it somewhere separate.
- Try payment plans and trimming costs before turning to credit.
- If you borrow, use a registered lender and know the total repayment.
This article is for general information and is not financial advice. Please consider your own circumstances before borrowing.