Five months to December: How to plan your holiday without breaking the bank

Transport costs go up, accommodation becomes harder to find, supermarket trolleys get fuller, and budgets somehow stretch further than we expected. Then, before we know it, January arrives with its own set of expenses.

An InfoTrak Research & Consulting survey released during the 2025 festive season found that 55% of Kenyans planned to cut back on their Christmas and New Year celebrations, with 78% citing financial constraints as the primary reason.

Unlike an emergency car repair or an unexpected medical bill, December expenses are predictable, making them one of the easiest financial goals to plan for.

Whether you’re planning an international getaway, a road trip to Naivasha, a family reunion in Kisumu, a beach escape in Diani or a quiet staycation in Nairobi, a little planning now can make the holidays far more enjoyable later.

Start with the holiday you actually want

Once you understand your plan, estimating the cost becomes much simpler.

• Will you travel or stay home? Are you hosting family and friends? Will you be buying gifts? Are there concerts, festivals or activities you’d like to attend? Will you need to set aside money for January expenses, such as school fees or rent?

Having a clear picture of your plans makes it much easier to estimate costs and avoid the temptation to spend at the last minute.

Break your budget into smaller monthly goals

If your holiday is likely to cost KSh 100,000, finding that amount in December may feel impossible. Spread it over five months, and it becomes KSh 20,000 a month.

A simple way to stay organised is to divide your holiday budget into different “buckets”. For example: transport, accommodation, food and dining, activities and entertainment, gifts, shopping, an emergency fund, and a January buffer.

This approach gives you a clearer picture of where your money is going and makes it easier to adjust when costs change. 

Book early while everyone else is still thinking about it

Because December is one of the busiest travel periods of the year, it often leads to higher prices and limited availability.

If you plan to fly, take the SGR, book a hotel or reserve an Airbnb, compare prices and book early. Booking in advance can sometimes save you thousands of shillings and give you more options.

The same applies to concerts, parks, attractions and holiday packages. The closer you get to December, the fewer options you’ll have, and often the more you’ll pay.

Keep your holiday savings separate

It’s easy for holiday savings to disappear into regular expenses when your money is in one place. Instead, consider setting up a separate fund for your holiday:

• A dedicated savings account; a separate savings wallet or a Money Market Fund if your travel is still several months away and you don’t anticipate needing immediate access.

Keeping your holiday money separate also makes it less tempting to dip into whenever an unexpected expense comes up.

Budget for the things people often forget

Flights and accommodation usually get all the attention, but it’s the smaller expenses that quietly push your budget over the edge.

Depending on your plans, don’t forget to budget for:

• Fuel or airport transfers, meals and snacks, park entry fees or activities, mobile data and roaming charges when travelling abroad, shopping, emergency expenses, tips and service charges.

A holiday budget is only useful if it reflects your entire trip, not just the headline costs.

Don’t leave all your shopping until December

If you’re hosting family this Christmas, don’t wait until the second week of December to buy everything.

Buying non-perishable pantry items, decorations or gifts gradually from August to November can ease pressure on your December pay.

Likewise, if you exchange gifts with friends or family, consider buying one or two items each month rather than shopping for everyone at once.

Resist the temptation to finance the festivities with debt

A holiday lasts a few days, whereas loan repayments can last much longer.

While borrowing may seem like an easy solution, it’s worth asking whether you’ll still be comfortable repaying for this holiday long after it’s over.

Saving ahead gives you more flexibility and lets you enjoy your holiday without worrying about how you’ll pay for it later.

Leave something for January

However good December is, January still shows up with rent, school fees, transport and the usual household bills.

Before spending your last shilling during the festive season, leave yourself enough breathing room for the first few weeks of the new year.

Make the holiday fit your finances, not the other way around

It’s easy to feel like you’re falling behind when your social feeds are full of beach holidays, matching family outfits and luxury getaways.

A well-planned family road trip can be just as memorable as an overseas holiday and a relaxing staycation can be exactly what you need after a busy year. Hosting loved ones at home can also create moments money can’t buy.

You should always remember that the best holidays aren’t necessarily the most expensive; they’re the ones you can genuinely afford.

Start planning now and spread the cost over the next five months, so that when December arrives, you can focus on making memories instead of worrying about money.