Top 5 items to budget for during holidays

Top 5 items to budget for during holidays

We’re in holiday mode which also means a lot of us are in spending mode! While spreading good cheer, we tend to travel back home, shop for our parents or children or just eat a lot.

All this extra spending will need extra money and therefore more careful budgeting. Here are some things you should budget for during holidays:

  1. Food

People eat or host a lot during holidays. If you’ve been to an African gathering at this time you’ve seen how much food goes around.  We’re big on cooking, ensuring that everyone’s well fed and we even have aunties that carry food home from a gathering so that they don’t have to cook after a long day of partying and catching up with family. If you love to have people over or have children that’ll be home most of the time in December then you’d need to ensure you budget for food and drinks so that your pocket is not dented beyond your expectations.

  1. Travel/vacation

It’s better to plan for your vacation way earlier by using a sinking fund but if you missed that opportunity then you should budget for all the costs that come with taking a vacation. From food, transport, accommodation, fun activities, clothing , getting your hair and nails done and even souvenirs, set a spending limit for yourself. While having fun is important, you don’t want to be filled with regret while the next year begins because you didn’t plan well enough.

  1. Transport

This applies if you’ll be moving around but not necessarily going on vacation. Kenya has lots of beautiful places to visit even within the city and aside from the actual fee that you’d need to pay to access these places, one cost that most people overlook is transport. Be it public transport or cab fare, unless you’re planning to stay indoors this holiday, transport fees add up just set aside some money for that.

  1. Gifts

Whether you’re doing secret santa at work or just want to do something special for your family, make sure you set a budget for this. When I was younger, my mother would give us money at the end of the year to shop for clothes in Gikomba (market in Kenya)  in bulk. We’d get about Kes 3,000 ($30) each and go back home with  sacks of clothes and that was our Christmas gift. This time of the year was when she got money from her chamas so this “gift” was always budgeted for along with the other house updates she wanted for the home. She saved for them through the year and that put less of a strain on other regular bills when the time to gift came around.

  1. Bills

You might have stopped everything to go on holiday, but your bills will not. A lot of people are paid earlier than usual in December, before enjoyment begins, sort out your major bills like rent, set aside money for fees, buy books and uniforms prior (these tend to increase in price as January nears) so that you can have a no-stress holiday.

If you budget for these things you’ll be able to enjoy your holidays freely and have nothing to feel guilty about in January. This will help you stay on track with your financial goals, you won’t be “borrowing from your emergency fund” for the holidays. Our course, Your Roadmap to Wealth teaches you how to create financial systems that allow you to plan for your long term goals and still cater to your wants and needs. Check out our website to learn more: 

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