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… and also, the most expensive.

The upcoming festive season is about family and, for those planners out there, a well-deserved break. But the most wonderful time of the year can also be the most dangerous for our finances. As the holiday season approaches, many of us are preparing to celebrate the past year - with our economy on the rise and our government (at the very least) trying something new. This hope might give us all a little extra confidence in the spending department.

Stats in a recent study show that last year’s average spend over the Festive Season for South Africans came to a whopping R200 Billion. With the economy improvement this year, we can expect an increase on this number for 2024.

Don’t be part of the majority who start their new year with an “oh dear, what have we done” scenario. We shouldn’t go on holiday to recover from burnout, only to come back with deeper debt and stresses in January.

At 1.618, we are here to help you stay on track. We’re here to support you as you consider your finances, re-check your insurances for the new year, update your medical aid plans, and help you get value out of your banking.

Don’t forget, making sure your car and home insurances are in place if you’re travelling in December.

Here are some tips to help you finish 2024 strong and start with confidence in the New Year.

1. Be a budgeting boss Start by setting a holiday budget. List all expected expenses, from gifts and travel to food and decorations, and set realistic spending limits. Then extend this up until the end of January.

2. Beat the rush, save some cash By planning ahead, you can take advantage of holiday sales and avoid last-minute expenses. Look for discounts, use loyalty programs, and consider buying in bulk for gatherings.

3. Spread joy, not just toys Meaningful gifts don’t have to break the bank and they often have much more meaning that just commercial gifts for the sake of giving.

4. Be a planning pro The end of the year is a perfect time to reflect on your financial goals and set new ones. Consider starting a holiday or emergency fund for next year, contributing a little each month.

5. Maximise rewards programme benefits - Save these up through the year, then ensure that you redeem all the benefits at the end of the year for the festive period.

6. Save one third to 50% of your bonus to see you through to January - Put it away in another bank account where you cannot accidentally chip in to it while you’re away. Remember, when we return to reality, there are all sorts of expenses ready to hit: from school uniforms, textbooks and stationery, to that January that feels like it’s one year long.

The festive season will fly past just as the last 10 months have. Don’t be in the position of getting in to debt to try and make people happy. Go and fill your hearts with what really matters this festive season.

And if you need any help with planning or adjustments for the coming year, get in touch with your 1.618 Financial Advisor to sort it out for you so you can have true peace of mind.

Happy Holidays everyone!