Don't splurge this festive, invest

The festive season is fast approaching.

We all know what this means. Splurging to spoil ourselves and loved ones and feasting.

The festive season comes with spending unnecessarily.

SV Capital co-founder Ayanda Majola says many experiences financial hangover due to the small, seemingly harmless expenses that add up.

“Let’s face it, South Africans turning December into one long spending spree could be a national sport. Whether it’s throwing the biggest braai or grabbing that extra just-because gift, the festive season feels like an open invitation to splurge. But when January rolls around, the financial hangover hits harder than expected,” says Majola. “But it doesn’t have to be this way.

She believes the festive season can be a time of both celebration and smart financial decisions. "We’ve all been there, overspending in December and then scrambling in January. It’s fun at the moment, but that financial stress is something we can avoid with a little bit of planning.”

She adds that the problem isn’t just the extravagant purchases.

“A few extra nights out, a handful of spontaneous gifts, and suddenly your December pay cheque has evaporated... The real cost? More than just a tight January – every rand spent on short-term pleasures could have been growing in an investment.

“Shifting your mindset is the answer. Instead of viewing December as a time to spend without limits, imagine if you took that same holiday budget and put a portion of it into investments that continue to grow long after the festive lights have dimmed,” says Majola.

Kagiso Tloubatla, SV Capital co-founder, says the festive season shouldn’t come at the expense of your financial future.

“If we redirected just half of what we spend on temporary thrills into smart investments, we’d all start the year in a much stronger position.

“Enjoying the festive season doesn’t have to mean sacrificing your 2025. With a few smart strategies this side of the year, you can still make the most of the holidays while setting yourself up for success in the New Year.”

He says with a spending plan in place, the next step is deciding how to make your money work for you.

“One cool investment tip is to diversify your range of products. Diversification is one of the most effective ways to reduce risk while maximising returns – and remember, patience and consistency are key to long-term success,” says Tloubatla.

Here are smart moves to get financially fit this festive season:

Set a spending cap: Plan by setting a firm spending limit. Make a conscious effort to stick to it. Whatever you don’t spend, put it aside for something that will benefit you in the long run.

Gift an investment: Why spend money on items that lose value when you can give something that grows? This year, consider gifting an investment to someone you love, whether it’s for your parents, your children or yourself. These kinds of future-forward gifts will deliver returns over time, giving your loved ones something they can truly appreciate.

Automate your savings: Set up automatic investments before December even kicks off. That way, your finances are working for you behind the scenes, and you’re still free to enjoy the holiday festivities without the guilt of overspending.

Trim unnecessary expenses early: There is still time. Start looking at your budget now. Identify any non-essential spending you can cut back on and reallocate those funds into savings or investments. By the time January rolls around, you’ll already have a head start on your financial goals.

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