Why December splurging keeps South Africans broke in January

Every year around this time, South Africans eagerly await the arrival of their savings maturity dates, stokvel pay-outs, or year-end bonuses. For many households, this represents money diligently saved throughout the year, yet often earmarked for a once-off wave of spending linked to the joyous celebration of the December festive season.

It is a time associated with abundance: abundant food, abundant gatherings, abundant travel, and, unfortunately, abundant financial waste.

Across the country, money will be spent on alcohol, on food purchased in quantities far beyond what is necessary, on hiring luxury vehicles for the sake of appearances, on entertaining friends and extended family, and on many other indulgences. Unnecessary spending becomes almost inevitable, justified by a belief that this is the season to “reward oneself” for surviving yet another challenging year.

But as citizens of a country facing deep economic uncertainty, rising living costs, and fragile household finances, we must pause and reflect. There is more at stake than simply enjoying December. We need to cultivate a culture that recognises an important financial truth: money makes money. Theoretically and practically, once you have accumulated a stable base of capital and invest it wisely, it can generate a sustainable income without you ever touching the principal amount.

This leads to a critical question: Are South Africans saving for the wrong reasons? When we closely observe our spending patterns, the answer may very well be “yes.” Instead of saving to build wealth, many save simply to spend, often immediately, around the festive season. This cycle ensures that by January, many people are financially strained, waiting for the next pay cheque, despite having had money just weeks before.

It is no surprise, then, that many South Africans anticipate working until pension age with little hope of early retirement or financial freedom. They spend in direct proportion to what they earn, and increase their lifestyle and expenses every time their salary increases. This pattern is not destiny, it is behaviour. And behaviour can change.

Changing our relationship with money requires knowledge, awareness, and a shift in mindset about the future. It requires us to rethink what “rewarding ourselves” truly means. Instead of rewarding ourselves with consumption, we can reward ourselves with financial stability, less stress, and a future that does not depend solely on monthly income.

Let 2025 be the year we choose differently. A year where we spend less on alcohol, unnecessary outings, and oversupply of food. Let it be a year where we celebrate in moderation, eat healthier, and resist the temptation to empty out our bonuses as soon as they arrive. The truth is that many South Africans drink beyond the point of enjoyment, eat far more than is necessary, and spend savings simply because the money is available. This behaviour does little for long-term well-being or prosperity.

We must become smart enough to recognise when each unit of spending delivers real value. When the answer is “no,” that is our cue to stop, rethink, and save. These small, conscious acts are powerful. They can slowly reshape our spending patterns, reduce waste, and strengthen our financial resilience as individuals and as a nation.

Food waste in South Africa remains alarmingly high. Alcohol consumption spikes dramatically during December. Unfruitful expenditure continues to burden households. These are not merely economic issues; they are cultural issues. And cultures can evolve.

Self-evaluation and small cultural shifts may be exactly what we need to start enjoying better Januaries and more financially stable years to come. Positive behaviour, when modelled consistently, becomes habit. And habits, when shared widely, become culture.

Social media and digital platforms offer a powerful opportunity to popularise a positive financial culture. one that celebrates smart spending, intentional saving, and a healthy relationship with money. By doing so, we also educate the next generation. They will grow up in an environment that views money not only as a tool for consumption but as a resource that must be nurtured, respected, and grown.

As South Africans, we have the ability to reshape our financial habits and build a stronger, more resilient national economy. The journey begins with awareness, continues with discipline, and thrives through collective cultural change. Let us reward ourselves with financial wisdom and not just festive indulgence.

Professor Pfano Mashau is the Director of the Durban University of Technology (DUT) Business School, where he leads strategic initiatives in business and executive education, research development, and industry partnerships. He is an academic, NRF-rated researcher, and IBASA-certified business advisor whose work focuses on promoting entrepreneurship, sustainable business management, and sustainable economic development.

***The views expressed here do not necessarily represent those of Independent Media or IOL.