11 Nov 3 year-end budgeting tips
As cash-stressed South Africans eye the festive season off the back of rising food costs and higher living expenses, think about budgeting rather than borrowing to enjoy the holidays.
1. Consequence Budgeting.
Before borrowing money, maximising credit facilities or setting aside precious cashflow to fund year-end festivities, calculate the predictable consequences of your actions in January 2026 and beyond. How will it impact on your ability to cover everyday household expenses? Your ability to pay school fees? Your contracted creditor payments? And will you need to skip essential commitments such as your bond, insurance premiums, and rates?
2. Review Meaning and Purpose.
Its human to want to add a special touch to year-end festivities and surely, you deserve it! It’s possible however that many of your friends and family are in the same position as you are. So, think about whether all the ‘stuff’ that you spend money on is important, or whether spending quality, uncomplicated and consequence-free time is more valuable.
Most South Africans are struggling with the high cost of living and would probably welcome suggestions of:
- Sharing the cost of the Christmas and New Year meals.
- Reviewing the Christmas menu. Do you really need lamb, beef, gammon and turkey?
- Setting gift limits, so nobody feels they must match others.
- Deciding on the most important aspects of the holiday and prioritising your budget accordingly.
This is a time for relaxing and creating happy memories, not setting the scene for Instagram-moments.
3. Setting Up 2026.
If you’ve considered Consequence Management, you’re already well set to review your financial plan for 2026. The other half is looking at your existing circumstances and figuring how to improve that. Set financial boundaries with tactics to help you stay in reach of your planned 2026 budget.
For example:
- Look for sales, discounts and promotions.
- Avoid credit card debt and expensive, unsecured loans.
- Again, prioritise the few things that make you happy rather than doing many average activities where costs creep up on you.
One of the best ways to celebrate the new year is going into 2026 knowing that the year ahead will be better!
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Salt EB is South Africa’s largest independent employee benefit administration company.