Is your festive season budget ready for the unexpected?

The festive season for many South Africans is a time for enjoyment with loved ones, reconnection, and taking time off.

However, alongside the festivities, there are often unexpected events, such as a car that needs urgent repairs or a burst geyser at home.

It is advisable to include emergency funds in your festive season budget due to unexpected events.

Sean van Zyl, Old Mutual personal finance certified financial planner says people usually budget for gifts and holidays during the festive season, forgetting to check if their life and car insurance is up to date.

“Whether it’s a minor accident or unexpected travel delays, having a proactive plan can make all the difference.”

An increase in unexpected misfortunes

According to their data, insurance claims usually increase by 20% during the festive season.

“This highlights how the natural rush of the season often leads to accidents or disruptions that could derail your holiday plans.”   

He adds that when one is fully prepared for anything that can come their way, they can focus on enjoying their time away from reality knowing they can handle whatever curveball life throws at them.

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Review your policies for the unexpected

“The festive season brings extra risks, so it’s the perfect time to review your car insurance.”

Ask yourself questions like: “Is my policy comprehensive, or is it limited to third-party, fire, or theft?”

“There are certain realities in life and even though we know it could happen, we don’t know when. Rather be always prepared.”

Double-check your life and disability cover

He notes that with most people being on the road during the festive season, accidents are more likely to happen.

“Make sure your life and disability cover is up to date so your family is protected financially if the unexpected occurs.”

The last thing one should worry about is “what ifs” when one should be focusing on making memories with loved ones.

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Don’t let hidden costs catch you off guard

Van Zyl says festive budgets often forget the little things, like extra petrol for road trips, meals and treats at stops, or those spur-of-the-moment activities.

“These costs add up quickly and can throw your finances off track. Build a detailed budget and set aside a little extra for surprises—it’ll keep you stress-free and in control.”

It could help one a lot if they look at travel packages which include things like accommodation and travel.

Plan for January’s “long month”

He adds that December spending can make January feel like the longest month if one is not careful with their finances.  

Van Zyl advises that one must make sure they have prioritised essentials like school fees, utility bills, and loan repayments.

“Starting the new year without financial stress is the best gift you can give yourself.”

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