How to save money in 2011 - Tips to avoid extravagant spending in 2011

The New Year 2011 is coming near and 2010 is going to get over. On January 1st , the year-end excitement will be over and we will get hurt in the pocket for the costs of the Christmas and New Year holidays, so I am sharing with you five simple tips to avoid extravagant spending and save some money. This is for people who spend extravagantly and for them, the idea is to create conditions that it should become hard to spend their money. With this, I am not trying to say that you should put a chain and padlock to your wallet, but I mean that we must apply some methods that make it difficult for us to spend extravagantly or lavishly.

How to save money in 2011 - Tip #1: Monitoring and keeping track of every penny spent

If you have a tight budget and at the same time you are extravagant, the first tip is to purchase a notebook and write in details about each and every penny you have spend or you are going to spend in the coming days. By doing this, you will keep a track of every penny spent and you will spend on items, which are really needed, and not on other useless items that are not really needed and those that you purchase when you have cash in your pocket. I have been doing this now for six months and it has helped me a lot. Some people will find this as a strange strategy because this requires a lot of balance and discipline. You have to create a sense of discipline to keep track of your expenses.

How to save money in 2011 - Tip # 2: Hiding your credit cards

I had five credit cards around one year back and now I only have one and that also I have kept for emergency situations. I am spending every penny in cash or with debit cards that means whatever I have spent is I have spent and there are no liabilities on me. I have learned a lot lessons from my past life where I was using all my credit cards and there was a huge debt on my shoulders every year. I have taken home loans, personal loans, and car loans and paid personal and car loans easily but paying off my credit card dues was a nightmare for me. Credit cards are like casino chips and are also called plastic money because it is the money, which does not even feel that it is being spent because a person has to not pay out of the pocket at the time of transaction and the person keeps on using it unless and until the person accumulates a huge amount of debt. Actually, we want to buy everything and that sense of buying everything is fulfilled by credit cards that’s why we become greedy about using them more and more, so my tip #2 for avoiding extravagant spending is by hiding your cards and using them only in emergency situations.

How to save money in 2011 - Tip #3: Consulting friends and relatives about your expenses and before spending again

If you want to keep within budget and remain moderate in your spending and you are finding it hard to do on your own, consult and talk with your close relatives and friends about your expenses and spending habits. Come together and share ideas with like-minded people. I guarantee that after doing this, you will be able to get many new ideas on how to do this without problem. Sharing information about big purchases you have done and you are thinking doing in the future can also help. Because some of your friends or relatives can come up with better deals and discounts with the purchases they have done and in this way, you can utilize their information while doing your purchases and save some money.

How to save money in 2011 - Tip # 4: Play it like you are playing a game

It is for sure that you can buy a 300-dollar digital camera, but why not get that same camera for 280 dollars? You can do this by spending some time hunting for better deals. You can also find some good deals online like free digital memory with the camera; just some research is needed. In this way, saving money will become a real fun.

How to avoid extravagant spending in 2011?
How to avoid extravagant spending in 2011? | Source
Reupholstering a sofa involves creativity and saves a lot of money
Reupholstering a sofa involves creativity and saves a lot of money | Source

Saving money in 2011 - Tip # 5: I was an extravagant fool. You don’t need to become one

When I was a bachelor, I used to purchase things without any consulting and without bargaining, but now I think I was a fool at that time because I would have used my brain at that time, I would have saved some money for me and my family. For example, in November 2005, I purchased a new flat and I thought it would be better to remove all my old furniture and buy new ones. I will give you example of only one furniture item and that is my soft set, my old sofa set was old and torn and I purchased a new one of around 500 dollars (approximately 23000 Indian rupees). I was very happy because it was new and shining. Now in November 2010, after only 5 years, that new safe sofa has worn out and I do not have money to buy a new one again, so I went ahead and visited a nearby furniture showroom asking what I can do to make it look new again. The person there told me that the best option is to reupholster your sofa and you have to spend around 250 dollars for doing that. He also told me that the best material will be utilized and the new reupholstered sofa will go on for another 10 years. After getting the rate for soft reupholstering and after having a look on some reupholstered sofas there, I thought that I was a fool when I purchased that new sofa in 2005 because time has changed and the quality of material used in new sofas has also changed that’s why my new sofa has worn out so early. If I would have REUPHOLSTERED MY OLD SOFA in November 2005, I would HAVE SAVED AROUND 250 DOLLARS plus I would have used very good quality material at the time of reupholstering that sofa. I have learned a lesson and I will not do it again and think over twice before spending money like this. This is just one stupid thing I have done in the past. There are many others which I will publish in my upcoming hubs.

The above are 5 tips I am using in my personal life. I think there are many other ways to save money but I have written them because I am applying them in my life. I think after reading these tips, you must have some idea on how to save your hard earned money by reducing some of your irrelevant expenses in 2011.

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Kmadhav profile image

Kmadhav 7 years ago from New delhi

very true dear these experiences. Not a problem, if u need anything in furniture I can help you to save money in this matter. Dear everybody in bachelor life is very careless in spending money and after marriage he/she thinks twice or thrice before spending any penny from his pocket.

I just use my credit cards only when it comes for exam registration online only this place my credit comes in picture otherwise in my pocket. Prefer to purchase in cash or from debit card.

Very Good Tips you also mentioned some other tips to save money like electricity bill and others like this. Good Hub AGAIN

Good advice for credit card also

cristina327 profile image

cristina327 7 years ago from Manila

Great hub. Great tips to consider. Thank you for sharing this. Have a great day.

dahoglund profile image

dahoglund 7 years ago from Wisconsin Rapids

good advice

ethel smith profile image

ethel smith 7 years ago from Kingston-Upon-Hull

Good advice. No-one really wants to be paying for christmas 2009 all 2010

Veronica Allen profile image

Veronica Allen 7 years ago from Georgia

Great advice and right on time too. I think it all boils down to using common sense. What a great resolution for the coming New Year.

DeBorrah K. Ogans profile image

DeBorrah K. Ogans 7 years ago

Soni2006, Wonderful hub with great advice! Writiing down what you spend gives you are reality check and helps you to evaluate your spending priorities! Thank you for sharing, Blessings!

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

Thank you very much to all of you for your comments and advice.

@Kmadhav, I agree that when we are bachelors at that time we are not concerned about our spending habits because all the money we have is for us only and after marriage, all the finances and spendings are divided among wife and children also. Writing on saving electricity is a good point. I have done this in one of my previous hub.

@cristina327, Thanks a lot Cristina for your motivation.

@dahoglund, thank you sir.

@ ethel smith, Yes I agree, No-one really wants to be paying for christmas 2009 and New Year for all 2010. Thank you so much for making it clear.

@Veronica Allen, I thought writing this hub was so important and I did this just one month before the Great Holidays so that we all can save some money.

@DeBorrah K. Ogans, Thanks for the motivating comment. I will be writing down more on what I spend so that it gives me a reality check and help me to evaluate my spending priorities and habits.

Best of luck to all of you and Merry Christmas and Happy New Year.

Linda Myshrall 7 years ago

Great tips and great hub, Soni2006!

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

Thank you very much Linda. I appreciate your kindness and support.

Pollyannalana profile image

Pollyannalana 7 years ago from US

It can get difficult and take all Christmas meaning away.

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

Yes, I think you are right.

Wife Who Saves 7 years ago

You give good advice. I enjoyed your hub and plan to read more of your hubs.

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

I joined your fan club dear. Thanks for reading and enjoying this hub. You are welcome to read more. I will also check out work done by you.

scheng1 7 years ago

Sometimes, recession is good, since it makes us relook the value of money and examine our spending habit. Nice to read about your personal experience and thanks for sharing

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

Thanks a lot scheng1 for expressing your idea on recession which is a really important issue these days. I agree that crucial times like tight economy and recession let us relook at the value of money and we start examining our spending habits which helps us in working towards saving money.

shafeeq 7 years ago

thank u...

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

It's my pleasure shafeeq.

Alba38 7 years ago

How very true - I learnt in the last economic crisis that borrowing money via credit cards or any other means is NOT worth it! I too keep one credit card for emergencies and only buy something if I have the money to buy it..... sound advice. It´s just a shame that the banks don´t follow it! I think that many people now are suffering because they have been encouraged to spend, spend, spend by the banks.... don´t you agree?

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

Yes Alba38, I agree with you on this totally. I know that people are encouraged and lured by banks with their various cashback and savings on shopping offers so that the credit consumer is attracted towards their schemes and spends more and more.

scheng1 7 years ago

Hiding credit card is the one that will prevent impulse spending. After all, using cash is more painful than using credit cards.

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

Yes scheng1, I agree that using cash is really painful initially but it never hurts after a month because your budget and your expenses are in your own control. You know how much surplus you have to spend and save whereas using credit cards is just like letting yourself fall into a deep well of loan burden which is sometimes as good as hell.

Karina S. profile image

Karina S. 7 years ago from USA

Great hub, Soni, love your tips, in particular tip #2 Hiding your credit cards- can save a lot of money and head ache

Thanks for sharing

soni2006 profile image

soni2006 7 years ago from New Delhi, India Author

It's my pleasure Karina S. Yes indeed I have stopped using my cards since the last two years and I am spending each and every penny in cash, so that's why I am so happy whereas previously I was depressed due to my bad financial condition. Thanks a lot to God who gave me some good thought of disposing off my credit cards at the right time.

darrylcrawford profile image

darrylcrawford 6 years ago from Philadelphia PA to Tucson AZ.

Very nice hub. Please check mine out. I'm sure you'll find something interesting and informative there. Have a great year in 2010. =)

soni2006 profile image

soni2006 6 years ago from New Delhi, India Author

Definitely I will do that darrylcrawford. Thanks for the appreciation.

Petstrel profile image

Petstrel 6 years ago from Slovenia

You can slowly begin to work on "How to save money in 2011" hub :)

soni2006 profile image

soni2006 6 years ago from New Delhi, India Author

I think this is a nice idea. Thanks a lot Petstrel.

mikiy profile image

mikiy 6 years ago

The tips feel great and doable but still I am not able to figure out what the year has to do with these. Couldn't we compute our spending last year in a way that we can now for example.

samironwebtrack profile image

samironwebtrack 5 years ago

very nice hub, thanks for share this....very informative

soni2006 profile image

soni2006 5 years ago from New Delhi, India Author

Thanks a lot Samir. I think I need to change 2010 to 2011 but I am glad that people are still visiting this old hub.

soni2006 profile image

soni2006 5 years ago from New Delhi, India Author

Hello Mikiy, actually people search in search engines like this - How to make more money in 2011? Where to freak out in 2011? so this is the reason why I wrote the title so that people like you and me while searching on Internet for this can come and have a look on this page. Best of luck.

MarloByDesign profile image

MarloByDesign 5 years ago from United States

I politely disagree with "Hiding your credit cards" - in fact, I wrote a Hub entitled "Using your credit card for all purchases 2011" - but that is my opinion. I would really appreciate your feedback on that Hub if you have a moment. Thanks! :)

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