Forget cutting on food from restaurants and making a budget diary - the best way to halt your pocket from getting lighter is by avoiding family gatherings and big spending friends, advocates Australia's 'tightest man'.

The penny-pincher Paul Squires advises avoiding family gatherings, limiting your friends and ignoring Mother's Day.

"I'm tight, but I'd like to think there are people out there much tighter," News.com.au quoted Squires, as saying.

"There are times when my wife is even tighter than I am," he added.

In his new book, 'Wealthier Than You Think', the 43-year-old promises to cut readers' debt, and put as much as 50,000 dollars back into consumers' pockets over five years.

He believes many Australians are living beyond their means, and there is a "river of money slipping through people's fingers every day".

Among his strategies for a financial makeover are having a weekly blackout night, where no electricity is used.

"It not only saves on the power bill but also gives people 'time out' to reflect," he said.

The father of two also recommends avoiding family get-togethers, particularly Christmas and Easter.

"There's nothing but heavy stress, heavy drinking and, amongst some families, some deep-seated issues come up. You spend a lot of money to partake in it and seriously, without being too negative, people come out mentally scarred. The reality is, why do it?" he added.

As for friends, Squires believes people need to limit the number of mates they have, and reduce the amount of time spent with them.

"Invariably, catching up with friends involves spending money and, some of the people you socialise with you don't like that much, anyway," he said.