By now the hangover has worn off and we are finally waking up to the reality that we have another whole year with which to deal. The economy was really bad in 2011 (most people lost ground) and it doesn’t look like 2012 is going to be any better. Some things are already slated to cost more of our hard earned dollars. Things like gasoline, food, and electronic gadgets, are going to burden us even more than they did last year, but services and fees are also going to increase in cost. Car tags are going up (did they ever go down?) and fees of all kinds are going to get worse. All the good habits that we employed last year will have to be ratcheted up if we want to make it through the next twelve months.

One way to save money is to spend more – on quality. Although this is not a new idea, it is worth revisiting. When we buy a car, computer, or other expensive item, look at the item in terms of whether it will be a useful tool for us in ten years. If the answer is yes, then we will want to spend a little more on the best model, or the best features, or – and this is the most important factor – the best item in terms of longevity. We don’t want to have to buy a new item (like a computer) every three months because it has gone out of date. Buy a computer that you figure will last for a decade without having to spend a fortune every time the next little doodad comes out. Buy your car sensibly, it is transportation, not a toy, so spend what you have to to get the most reliable transportation. In other words, spend the money on a better model, not extraneous junk.

A second way to save is to forget the "bells and whistles". You are better off with a standard model of something rather than a cheesy version with a bunch of extras that serve no purpose. Get your entertainment by going bowling (or whatever) instead of trying to cram in all sorts of useless junk into your car, or computer. This coming year the manufacturers are gearing up to sell more gadgets and toys for those unfortunate enough to be dazzled by them. We will see "extra features" included with the higher end models – and we’ll pay dearly for them. The standard models will be played down. The smart shopper will ignore the hype and instead buy a more standard model even if he or she will spend more overall for a higher quality item. Don’t be fooled by the advertisers’ ubiquitous sales pitches; stick to your common sense, and buy what you need rather than buying what is being sold.

Another way to save money this year is to realize that you may not have to spend anything on a new item. Look at the old item and see if it still works to your satisfaction. Maybe the car just needs a tune-up, or a really good cleaning. If it still gets you to work, then why buy another one? It would be much better to spend a couple hundred on the old car than it would be to spend several thousand on a new one. Likewise with your electronic gadgets. Look at your possessions as tools that you need to get through your day. If the tools are still working, then there is no reason to waste money on new ones. Stop immersing yourself in the daily brainwashing that you find on the radio, TV, billboards, and other media. And, for Heaven’s sake, stop trying to keep up with the Joneses; they don’t have the answers either!