With the economic downturn and oil at alltime high, we ordinary folks are experiencing difficult times. This does not spell the end of the world to a comfortable life. We can still enjoy good living during leaner times by being less wasteful, better organised and more appreciative of the good things we used to take for granted. It is a test of one's tenacity and one will emerge stronger and have better sense.

Here are some tips. Please feel free to add to the list.

Restructure

Often, we purchase things on impulse. I'm not referring to the compulsive shopper but the average person who can't resist a good bargain and believe that it would come in useful sometime in the future. Then these things get stored awau anad forgotten. Now it's time to go through your wardrobe, pantry, cabinets, basement, attic, garage, etc to find these treasures. Put them to good use. Start wearing those clothes, perhaps, at home if you think it has gone out of fashion or accessorize to update it. You may have surprising finds of pots and pans. For stuff that you don't want, recycle or donate to charity thrift shops.

Smart Shopping

Now, after you've cleared out the useful and the junk, you could shop for the essentials -- things that you really need. Be mindful not to grab everything on sale but think of whether and how often you would make use of the items before parting with your dollar. While it is wise to reduce the number of trips to conserve petrol, it may not be advisable to buy too much perishable foods. Just get what you and your family are able to consume before your next shopping trip.

Shopping for clothings that are classic, in solid colors, and not too fanciful so they won't be outdated quickly. Buy only the essentials for the season. Unless it is an irresistible bargain of items that are versatile for most seasons and daily use, don't succumb to temptation.

Inexpensive does not equal cheap and inferior quality

Discount stores come in useful. Check the quality and expiry dates and you'll be amazed at your discoveries. I have stuff bought at $2 shops that have lasted me more than 10 years. These days, it is worth checking out some online discount stores are very handy and competitive.

Homecooking

Cutting down dinners at restaurants would reduce expenses drastically. The thumb of rule for a viable restaurant business is charging food at three times the cost price. So if you don't think it's worth paying the markup, try improving your cooking skills to whip up nutritious and delicious meals in minutes. Steaming fish, pasta, soup, grills can be easily prepared with basic sauces and natural ingredients such as herbs, spices and a dash of wine.

Vacations

Look out for promotional offers and short trips in view of the increasing air fares. Take short weekend tours of your vicinity before venturing interstate or overseas. The destination may be secondary, it's the company that makes a trip really enjoyable.

Non-essentials services

Being a non-customer of such services, I don't know how much emotional attachment some people place on frills such as visits to the nail painter and beautician. But if these visits can be reduced or substituted by self help or groups, it could well save you a couple of hundreds a month. For the fitness freaks, you may want to rethink when your gymn membership is up for renewal. Brisk walks and exercising at your backyard may be just as good if not better than working out at indoor fitness centres.

DIY

Most of us may not be born handymen but certain small jobs can be easily done at home during the weekend instead of employing tradesmen. If you do call a plumber, electrician or repairman, ensure that you have a few jobs planned to save on separate callout charges.

Positive Thinking

The human mind is creative and you are what you think. So cheer up and enjoy life.

And watch "Die Hard 4". Any other great movies to recommend?

" Die Hard 4 " out yet in DVD? In the movie house? Sang Nila, we are talking about saving some dough here. Wake up!

Kebau, are you living in some sort of deprived entertainment desert? I believe Die Hard 4 has been available on DVD for months and I mean the legal / unpirated DVDs. Family and friends can enjoy one DVD for a couple of dollars depending on the contract with service providers. You could order a certain number of movies on line and have them delivered. The lease is for an unlimited time. Just seal the return envelope and drop it in the post box when you're done with and you'll receive another DVD. It's huge savings compared to going to the cinemas. You don't even need to drive to the video stores to rent the DVDs, thus saving petrol. We still have to enjoy quality standard of living during hard times.

Thanks Orange Blossom, I will check this out. Maybe for this weekend.

Financial consultant Noor Aini Redwan is able to keep to a weekly budget $120 for a household of seven.

It boils down to alertness, prudence and adaptability.

http://www.asiaone.com/Business/My%2BMoney/Starting%2BOut/Investments%2BAnd%2BSavings/Story/A1Story20080706-74949.html

She practises all the golden rules she imparts in her budgeting class.

Save before you spend. Put aside at least 35 per cent of your income away for a rainy day. Minimise loans. Avoid hire-purchase schemes with high interest rates as they usually make you spend future income.

Separate needs from wants. Meet the needs, avoid the wants, except when you want to reward yourself.

Singaporean Noor Aini Redwan's practice of thriftiness is applicable to any society. It is all relative, expenditure and available resources to save. In North America, where transportation to work can be a huge problem, with gasoline prices at record high. In many cities, many urbanites do not have transportation to go to work in factories or jobs located mostly in the suburbs and thus decide to stay at home to collect welfare. In such cases, living from hand to mouth existence is a reality and many of these folks just have no chance to save for any rainy days.

There are two ways to plug a leaky budget, according to Desiree Fraser of Count Wealth Accountants : earn more or spend less
After years of economic growth and cheap credit, peoiple have forgotten how to budget!

A senior policy officer with the Australian Financial Counselling and Credit Reform Association says before you can save, you need to know exactly how much you are spending and what you are spending on.

Most people who keep a daily log find it's the little things that count - your morning coffee and newspaper, lunch and phone calls.
Let kids use cash instead of plastic as some have no idea where the money is coming from.
Talk with the family about the difference between needs and wants and involving the kids in the drive to cut unnecessary spending.

Cost-cutting measures around the home such as checking:
- standby power, like dripping tap
- thermostat
- more efficient appliances such as switching off old friedges and halogen lighting

Banking : consider the fees, transaction, operating account, claims for tax deduction, and interest rates.
Check deals that big banks offer such as bundling mortgage with credit card.

Assessing health and life insurance needs and calculate your premiums. However, dropping insurance to save money is a false economy.

Useful calculator which shows a representative basket of goods compiled by the Australian Reserve Bank :
www.rba.gov.au/calculator/calc.go.

After wage increase and tax cuts, consumers may not be better off because of hikes in gas, electricity and water, and mortgages.
However, clothing prices has fallen 7 per cent over the past 4 years while real spending rose 29 percent as people are buying more.
Gadgets such as computers, digital cameras and iPods take a bigger slice of household budgets than petrol.

- Extracted from Barbara Drury's article : The building blocks of wealth
www.moneymanager.com.au

A pleasant discovery some off the shelf products from one pharmacy across the road from another are prized between 20 to 30 per cent less.
The items are regular priced and not on special offer.

Though I've always known about price differentiation by companies and locality, it is indeed great savings for consumers.

If anyone is interested to know the name of the pharmacy, please private message (PM) in this forum. (Applicable to Australia only.)