The Holidays Are Coming... Don’t Get Caught Off Guard!
The December holidays are quietly sneaking up. 😅 You may not want to think about this right now, but it’s better to start planning. With mid-term breaks wrapping up and the sprint to the year’s end beginning, it’s the perfect time to start budgeting. If you don’t get ahead of it now, December might catch you off guard —and we all know what happens when you loose guard and detty December takes control of your wallet.
The good news? You can set yourself up for success without sacrificing all the fun. Here’s how to prep your holiday budget in four easy steps.
Review Current Spending – Start with What You Have, Not What You Want
We’d all love to jump straight to the fun part—picking out gifts, planning a getaway, or imagining those holiday dinners that leave both hearts and bellies full. But reality’s got other plans. The truth is you can’t budget money you wish you had. You can only spend what’s already sitting in your account—unless you want to start 2025 dodging debt collectors.
So, before setting your holiday spending goals, take a good look at your finances:
- What’s in your savings right now?
- What bills are non-negotiable this season?
- Where can you make painless cuts?
Think of this step as the inventory check before the holiday frenzy. Pull out your banking app and scroll through the last few months’ transaction history. How much went out? How much came in? And what was left over or debits carried over?
This isn’t about tracking every naira; it's about identifying patterns. Do your usual spending habits leave enough wiggle room for December’s festivities, or will you need to tweak a few things? Imagine this: You keep spending as you have been, plus holiday costs—how does that look?
The answer to that question determines whether your December feels like a joyful celebration or a financial hangover waiting to happen. Once you have a handle on your current position, you’ll know whether to turn up the holiday cheer—or turn down some of those plans.
Pro Tip: Think of this step like scouting your opponents before a match—if you don’t know where you stand, you can’t have a good plan.
Prioritise Your Goals – Define Your Holiday Vision
Holidays mean different things to different people. Is this the year you splurge on gifts for everyone, or are you more about experiences and getaways? As you step into the holiday planning process, it’s time to clarify your vision: What do you want to achieve this season, and how does it align with your overall financial goals?
Start by asking yourself:
- Do you have any funds saved for holiday festivities?
- Are you prepared to dip into debt to make this season special?
Once you’ve grasped your financial standing, you can start matching your holiday aspirations with what your wallet can handle. Let’s say your budget allows you to pull together about N1 million for holiday spending without touching your savings or taking on debt. Now, what does that mean for your celebrations? A few thoughtful gifts? A fancy dinner date? Or perhaps a small getaway?
But here’s where it gets interesting: If you desire more than what your current financial flow can support, you’ll need to rethink your strategy. Do you want to hustle for extra income, or perhaps find a way to tighten the belt on your monthly expenses? And if borrowing is on the table, it’s crucial to consider how you’ll manage that in the new year. Because let’s face it, no one wants to start January with a financial hangover from holiday spending sprees.
Alternatively, if your goal is to enjoy the holiday season without any financial acrobatics keeping everything within your current budget, then you’re already on the right track. By setting clear limits, you can enjoy the festivities without the looming stress of debt. You’ll feel lighter, freer, and ready to embrace all the joy the season has to offer.
Connect Budget Cuts to Spending Goals – Trim the Fat Without Feeling the Pain
You’ve set your goals, and now it’s time to get practical: How do you fund your holiday dreams without wrecking your budget?
If you’ve been diligently saving for the holidays, that’s fantastic—you’re more than halfway there. But if your holiday fund is looking more like a pipe dream, you’ll need to make some decisions: cut back on current spending or, as a last resort, take on debt.
Debt might feel like the easy way out, but it’s a slippery slope. A few minutes of joy now can translate into months of financial stress later. If you can, try to avoid starting the new year in the red by revisiting your everyday expenses. The goal is to find low-priority spending that can be temporarily redirected toward holiday fun.
Let’s be honest cutting back isn’t always fun. But what if you could make it meaningful? Connect your spending cuts directly to your holiday goals. Skip one Friday night out with friends, and you’ve freed up enough cash to buy a thoughtful gift. Swap that expensive lunch for homemade meals for the next few weeks, and there’s your budget for festive decorations or a small holiday treat.
This isn’t just about cutting back, it’s about reassigning value. When you can see the trade-off clearly, every small sacrifice becomes part of the bigger picture. Instead of feeling like you’re missing out, you’ll feel empowered, knowing each choice is bringing you closer to the holiday experience you want.
The key is to stay flexible. Not all expenses are equal, and some are easier to trim than others. Unused gym membership? Consider pausing it. Opt for market groceries instead of supermarket groceries for the next few weeks? With a little creativity, the funds you need are already within reach, you just need to shift things around and adopt a frugal mindset.
Set Up a Spending Schedule – Map Out Your Game Plan
You’ve analysed your spending, set your priorities, and found hidden funds. Now it’s time to bring it all together: When will you spend what you’ve planned?
- Break down your total holiday budget into categories—gifts, food, travel, entertainment.
- Assign deadlines to each item. For instance, buy gifts during black Friday sales, book travel by November, and reserve party budgets for Christmas week.
These spread out the expenses, keeping your cash flow manageable and ensuring no surprises pop up at the last second.
How long do you need to stay disciplined? If your plan involves cutting back on everyday expenses, map out a clear timeline and break it into weekly savings targets. Think of it like assembling a puzzle—one piece at a time until the full picture comes together.
It’s normal to hit a point where things feel tight, and the temptation to swipe a credit card “just this once” will be strong. But don’t let short-term convenience ruin your long-term peace of mind. A schedule helps you stay in control and ensures your holiday expenses don’t spill over into the new year.
For example, if you had cut back on takeout by N10,000 a week in June and started a Holiday Custom SaveIN plan with InvestNaija, by December, you’ll have easily saved over N260,000. That’s a substantial sum to fund thoughtful gifts and more paid for in advance, without stress or debt.
The key? Keep the end goal in sight and start early. Celebrate each small victory along the way—whether it’s skipping a night out or choosing homemade meals over delivery. Stick to the plan, and come January, you’ll have joyful memories and a healthy bank account.
Takeaway: Enjoy the Holidays Without the Financial Hangover
December shouldn’t feel like a financial ambush. With a bit of preparation and smart budgeting, you can glide into the holidays stress-free and ready for all the fun. Start early, prioritize your goals, and trim where needed—your wallet (and future self) will thank you.