How to avoid becoming a January beggar: Financial tips for the festive season

They say December is not a month, but a feeling. However, it’s a feeling that often comes with a hefty, unplanned bill, and months of financial pain and regret.

It’s the time when many South Africans, after a long and demanding year, decide they deserve to live the “soft life.” The soft life means no worries, no limits, and no budgeting. It’s a time for expensive champagne, beaches, and brunches.

“Mind you, this is really on for a few days in December, usually around the 16th, 25th, and New Year’s Eve, and the New Year, many become December millionaires. But then January knocks and immediately submits an invoice,” warns John Manyike, Head of Financial Education at Old Mutual.

“The truth is, the real cost of the soft life isn’t just what you spend in December, but often the financial stress and hardship you carry into the new year because of it”.

For many, the soft life has become a form of reward after 11 months of hard work and sacrifice. There’s a deep emotional need to switch off and enjoy the fruits of one’s labour, perhaps rightly so. But Manyike warns that unchecked spending and instant gratification can create a cycle of short-term pleasure and long-term pain. For some, the December soft life is the begining of financial nightnares and the risks of losing valuable assets such as a family home or cars due to missed debit orders which were compromised or intentionally neglected.

“We need to start asking ourselves some questions, says Manyike. “Do we truly have the finances to fund the soft life or lifestyle we want in December?”.

“If your budget can’t carry your soft life well through January, then it isn’t soft at all but simply an expensive, borrowed happiness,” Manyike says.

The irony is that people who spend recklessly in December often spend the next few months grudgingly undoing the damage. School fees, credit card repayments, emergencies, and transport costs just all tend to arrive as the festive glow fades. This is where “December millionaires” become “January beggars.”

The solution isn’t to stop enjoying life but to live it smartly. Manyike says even small changes, like setting aside a ‘fun fund’ throughout the year, can help you enjoy guilt-free indulgence come December, so that when you plan for the soft life, then you don’t have to recover from it.

True soft living, Manyike adds, isn’t about designer labels or beach villas, it’s about peace of mind.

“It’s being able to rest, celebrate, and spoil yourself without fearing debit orders and school invoices in January. That’s the ultimate luxury, a soft life that doesn’t harden your finances and bring you pain later,” he explains.

“You can enjoy December, just don’t let December enjoy you. The real soft life is living with comfort and confidence all year round, not just for a few staggered days in December, followed by regret and pain in January,” Manyike says.

“Why not keep life simple, prioritize your essential items such electricity bills, mortgage, car, debts and use what’s left to put into your fun festive budget to avoid Janauary regrets.”