The Christmas Season is often the time when people sink deeper into debt. If you already have debt it can be an extremely stressful time. And if you don’t have debt but are on a tight budget then some decisions need to be made. Go into debt or have a cash only Christmas. Regardless, of your financial situation a cash only Christmas is always a good idea. Here’s how to make it happen.

Step One: Plan How Much You Need To Save.

The earlier you sit down and plan the better. Sit down with a piece of paper and make a list of all of your potential Christmas expenses. Include food and party expenses, decorations, holiday cards and gifts. Err on the side of caution and overestimate if you’re in doubt about how much you might need to spend in any individual category.

When estimating the expense for gifts, don’t forget co-workers, extended family, and service providers. And if you have children then their friends and teachers may need to be included on the list.

Step Two: Calculate How Much You Have

The next step is to take a look at how much money you have to spend on Christmas. The closer the two numbers are, your cash on hand and your holiday expenses, the better off you are. It means you won’t have to make too many budget cuts. However, even if your numbers are far apart right now, that’s okay. The next two steps will help you bring the two closer together. The ultimate goal is to have all of the cash you need to afford your list of Christmas expenses.

Step Three: Extra Cash

Now take a look at ways you can earn extra cash. For example, can you save an additional ten dollars a week? Can you do a few freelance projects to boost your income between now and Christmas? Can you work a few weekends or add overtime to your work schedule? Can you sell all of those used books and electronics stacking up on your shelves?

Are their clothes in your closet that you can take to a consignment store? Also think about ways you can earn money online. For example, if you’re crafty you can sell your hand made goods at etsy. If you’re a budding chef or baker then head to foodzie to sell your homemade goods.

Step Four: Cutbacks

In addition to looking for ways to add cash to your holiday savings it’s also important to look at ways you can cut back on your holiday expenses. For example, maybe you can have a secret santa exchange with your extended family so you only have to buy a gift for one person instead of twenty. Can you make some gifts instead of buying everything at the mall?

Step Five: Sticking To It
Finally, once your two lists match, your savings and your expenses, make sure you stick to your list. This is the most important step in the process. If you feel like you might be tempted to use those credit cards, put them in a bag filled with water and pop them in the freezer. When you head to the store to shop for gifts, take all credit cards out of your pocket. Cash only!