Turning Frugality Into a Lifestyle

Many financial experts are saying that we are at the beginning of the end of the "Great Recession" as it has been dubbed in the news, and as the economy improves, there is already speculation about whether American spending habits will change at all in the long run. In the past year, we have gotten smarter with our money. We are more frugal. We keep a close eye on our credit card balances and pay them off right away. When we don't feel the pressure to watch our finances this closely, however, will frugality become last year's trend?

I'm going to share some of my goals for the New Year, and hopefully they can help you keep your credit card debt down in 2011.

1. No more recreational shopping: I will shop when I need to. When I shop just to shop, I end up feeling more discontent with what I don't have than content with what I do have. Besides, I don't view eliminating my recreational shopping as a sacrifice as much as a trade-off. I am the type of person who ultimately appreciates experiences more than possessions, so I would rather have a nice night out with dinner and a theater show than spend an afternoon buying more shoes.

2. No procrastination with payments: I will keep up with my credit card payments and pay off my holiday debt before my honeymoon in February. As a freelancer, I also owe the government more in taxes, but I will keep up with payments via the Electronic Federal Tax Payment System (EFTPS) website instead of putting off payments until the end of the year.

3. Give myself a savings goal: Gregory Karp on Philly.com recommends giving yourself a savings goal so that you are working towards a tangible goal. As I said before, I am going on my honeymoon in February, and it is the perfect first savings goal for the year.

4. Set savings amount for each month: Through online banking, I can set up an automatic transfer of a certain amount of money each month from my checking account to my savings account. This way, I end up saving at least some money each month without me having to do anything.

Comment below and tell us your financial goals for 2011, and if you want to read more about money management during the holidays, go to http://blog.mycreditspecialist.com/2010/11/24/money-management-my-holiday-challenge/ and read about holiday money management. Also, check out http://blog.mycreditspecialist.com/2010/11/24/store-credit-cards-avoid-the-impulsive-trap/ to read why store credit cards can sometimes do more harm than good.

To learn about responsible credit card use and improving your credit score, go to http://blog.mycreditspecialist.com/, and sign up for a free credit evaluation at http://www.mycreditspecialist.com/.