'Spending what you save' may not be the answer, either....

As consumers, however savvy, we all have our own approach to dealing with the global financial crisis, each determined to reduce our dependence on the buy-now-pay-later model.

However, saving-before-you-spend may not be the answer to reducing consumption.

For instance, a pal of mine recently went to the summer sales to buy a £500 suit, and spent what he saved as follows:

- £500 suit in sale @ 50% discount, pays £250
- £250 jacket in sale @ 50% discount, pays £125
- £125 shoes in sale @ 50% discount, pays £62.50
- £62.50 shirt in sale @ 50% discount, pays £31.25
- £31.25 tie in sale @ 50% discount, pays £15.62
- £15.62 singlet in sale @ 50% discount, pays £7.81
- £7.81 socks in sale @ 50% discount, pays £3.90
- £3.90 shoe polish in sale @ 50% discount, pays £1.95
- £1.95 shoe brush in sale @ 50% discount, pays £0.97

....leaving £0.97 in his money-box towards the autumn sales…..