I think it’s crazy that people scrimp and save by not tactically buying their favourite latte or turning the heating down a few degrees over a month, only to completely mitigate those actions by buying the latest fashion/software/cable plan etc. I’m officially labelling it personal finance schizophrenia!

I’m still using Adobe Photoshop 6 (from 2000!) and it still does almost everything I need – ($699 for the latest CS5) – and I built my computer from unwanted scraps (£800 saved). The problem is that modern, western culture requires money to change hands almost constantly… frugality is laughed at as ‘penny pinching’ and using second-hand goods is equally sneered at. Hell, even cooking from fresh ingredients is a dying skill in the UK and USA.

It amazes me, however, that a lot of the people I know are living above their means regardless of the consequences. I have a friend who is in debt and still goes shopping for clothes when she has nothing better to do.

For businesses… a lot of new companies think they need to get Microsoft Office for their computers. Shelve paid software and start using opensource.

I transitioned to Open Office two years ago and I haven’t looked back since.

Ah, I just saw now the date of this post – ah well =p Better late than never. Haha

When you honestly work out the minimum amount you need to survive comfortably, you’ll wonder just what you are spending half your monthly salary on! It’s quite a wake up call.