‘Tis the season to be jolly’ that’s the phrase on most people’s lips as Christmas Day gets closer.

Between gift buying and celebratory parties, it’s easy to lose sight of what really matters – your financial goals.

This is why it’s important that we curb the urge to splurge.

If you’ve already determined your Christmas budget, then you’re already half way there.

According to manager of client financial education at JMMB Group, Michelle Sinclair Doyley, the other half involves a few strategic tips to help you spend wisely this Christmas.

1) Make a Christmas gift list: In making your gift list for Christmas, detail gift options and the cost of each gift. This will help you to stay within budget. But, if you overspend on one gift, remember to curb the urge to splurge by spending less money on other gifts and taking advantage of discounts and special deals.

2) Use your debit card instead of your credit card: This allows you to spend only the money you have, without additional debt and the associated interest charges, if you are unable to pay off the credit card bill in full on/or before the due date. Therefore, only transfer the money you intend to spend on gifts into your expense account and take the debit card for your shopping spree. Knowing our accounts have a finite amount of money will psychologically restrict our spending.

3) Give monetary gift certificates: It may be more budget-friendly to contribute to the gift your loved ones really want. This could still be complemented with a small token such as a personalised card.

4) Give of your time: Your presence may be the best gift to some of your loved ones. Mariah Carey sang “Baby, all I want for Christmas is you,” and there may be a few persons in your life that feel that way about you. Show your loved ones how much they mean by finding exciting ways to spend time with them, even coming up with some budget-friendly memory creators together, and capturing those memories with photos. You can also share your time and talent with the less fortunate, in a cost-effective way.

Aside from those tips, Sinclair Doyley is advising shoppers to remember to account for the following:

• your monthly expenses;

• a prorated monthly amount of annual expenses, such as your car insurance, which is determined by dividing the annual cost by 12; and

• holiday expenses, such as parties and family festivities.

A simple formula to calculate your budget might look like this:

Your Christmas budget = December salary + bonus – (Monthly expenses and savings + provisions for annual expenses).