The festive season tends to be a time when purse strings are slackened and many attempt to shut their consciences up while they let their money do the talking. It's a trap that's fairly easy to fall into but by taking a few simple steps, you can save money and still have an enjoyable Christmas.

The best thing you can do is to plan. Many people get so caught up in the spirit of the season that they spend more than they should and later come to the cruel realisation that being merry can be a very costly expensive affair. Here are some tips to help you enjoy the festive season without overtaxing your wallet.

Open a savings account

Create a savings account and deposit small amounts of money into it throughout the year. This is ideal since you gain interest if you maintain deposits without making withdrawals. When the end of the year arrives, transfer the money into your transaction account. If you plan on using a credit card, just use one. It will help give you a better idea about how much money you're spending.

Plan your shopping

Shop around when buying gifts.Companies tend to get quite competitive during the festive season so there's always the chance that you'll find a better deal when you find a price tag your bank balance doesn't agree with. Your shopping trips should be well planned and kept as short as possible. Try to resist buying things on impulse, it can lead to you spending more than you would like.

Make your own cards

You might be surprised how much Christmas cards can eat into your budget if you're not careful. Making your own cards is much more cost effective and can be fun too. If you're not the arts-and-crafts type, you could always print some Christmas designs off the Internet instead.

Christmas lights

Who can imagine Christmas without lights? Of course, you're going to have to be careful if you want to save on electricity. Opt for LED lights instead of conventional bulbs. They may have a higher price tag but they use 95 percent less energy and last up to seven times longer, making them a better investment. You can increase the effect of your existing lights by placing them near reflective surfaces like windows and mirrors. Doing this doubles their effectiveness.

Wrapping it up

You don't have to spend a cent when it comes to wrapping paper. Use brightly coloured pages from magazines or comics instead. You can also buy plain white paper and get your kids to decorate it with pictures, drawings and stickers. As for bows, you could use ribbon (which you can save and use the next year) or make flowers out of tissue paper.

It's better to give

Gifts don't have to be expensive. There are many options available that your family and friends will find more meaningful than soap-on-a-rope, like personalised gift certificates. If you have a busy friend, make one that offers taking them to a fancy restaurant or kids could make some that offer them to give their parents breakfast in bed.

You don't have to spend any more than you need to this festive season. Look at where you can cut back on costs and you can still have a very merry Christmas without breaking the bank.

For more information read the following links.

• Mmegi
• norwichbulletin
• Finance Daily

Last Updated: 13 December 2011