Prepare your finances for the holidays: essential tips for a stress-free season

Spring is the season of fresh starts and the perfect time to give your finances the same spring clean you give your home. With only three months until Black Friday, the school holidays, and the festive rush, now is the time to re-examine your debt, check your credit, and set a realistic budget - planning now will save you a lot of stress later.

September also marks National Wills Month, a timely reminder to tidy up the paperwork that protects your family. 

According to recent reports, most South Africans are unprepared for unexpected expenses. Over 80% of middle-income South Africans have minimal to no emergency savings. Further highlighting the severity of the situation, 27% of middle-income South Africans have no access to any savings at all.

Money management can feel overwhelming. But taking a few proactive, practical steps now can make the holiday season far less stressful, giving you greater control over your finances.

Here are some critical lessons we should all implement into our own budgets:

Tighten up

Start with a quick audit: where is your money actually going each month? Cancel subscriptions you no longer use and cut a few non-essential treats - those small savings add up fast. Then make saving effortless: set up an automated transfer or debit order so you put money aside every month before you have a chance to spend it.

Consolidate your accounts to avoid multiple service fees for more than one credit facility, it is also simpler to manage your finances in one place. So, try to consolidate your accounts.

Create a savings buffer                                                                                                                                 

Holiday costs add up - gifts, travel, keeping your kids entertained, and unexpected extras. Putting away even a small amount each month builds a useful cushion that reduces stress later.

It might not seem like much now, but small, regular savings compound quickly - and when the bills come, you’ll be glad you started.

Keep an eye on your debt and credit                                                                                                   

Know your credit score and keep track of outstanding balances. Start by checking your credit report for errors, set up transaction alerts, and prioritise paying down high-interest debts first - or consider consolidating them into a single, lower-rate repayment to reduce fees and simplify budgeting. If you’re unsure where to start, RCS provides free credit-management tools and budgeting tips via their Credit Gateway: https://rcs.creditgateway.co.za/

Keeping tabs on your credit helps you act fast if something’s wrong and prevents small problems from turning into big ones.

Double-check your insurance

Your car, home, and contents may need updated coverage. It’s important to check whether your policies are still reflecting current values. Comparing options can save money while keeping you fully protected.

Update your will

An up-to-date will protects your loved ones and removes uncertainty. Use National Wills Month as a prompt to review beneficiaries, confirm your chosen executor, and ensure any new assets are included. If you haven’t made a will yet, get one in place - even a simple, professionally prepared document is better than none.

Making sure your will is valid and current gives you peace of mind and will avoid costly disputes.

Stay cyber-safe

Online financial fraud is on the rise, and scammers are getting more sophisticated by the day. A few simple steps you can take to protect yourself include only shopping on reputable websites and verifying that the URL starts with “https”.

You can also enable two-factor authentication on all accounts (where possible), use secure payment methods, and keep your devices updated with the latest security protocols.

It’s crucial to never share passwords or personal information over email, social media, or messaging apps. If a payment request or deal seems unusual, pause and verify it with the company directly.

Boost your financial knowledge

Understanding your finances can be a very empowering process, giving you greater control of your overall financial well-being. Read trusted sources, take a short course, or ask a financial advisor. Small steps in learning can prevent costly mistakes and provide confidence.

Start with your budget, credit, and savings now. A little preparation will go a long way in making the holidays calmer, safer, and more festive, especially when you don’t have to stress about finances.

* Van Brakel is the deputy CEO at RCS.

PERSONAL FINANCE