Remember when bananas cost a scandalous $16 a kilo? Those now seem like happier, more innocent times - let's face it, leave the fruit out of your smoothie and you were none the poorer.

It's not really an option to forgo $1.60-a-litre fuel. Or 9.5 per cent mortgage interest rates.

Worse still, it's possible both will go higher.

Not for years has the pressure on our hip pockets been so great, as evidenced by an inflation rate that has moved well beyond the Reserve Bank's 2 to 3 per cent target band.

So in the interests of coping, here are a bunch of ideas - some more extreme than others - on where you might be able to cut costs.

Vehicle: A fitting place to start. You'll by now know it's cheaper to fill up on Tuesdays. But also get your car serviced regularly so it's more fuel efficient, unload after each trip, as weight will increase your bill, and brake and accelerate as if there were eggshells under the pedals. If you have two or even three cars, is there any way you could get rid of one of them?

Banking, utilities and insurance: Unless you constantly scour the market for the best deals, you will be paying too much for all three. Ask providers if they will give you a discount and, if not, take up a better offer. Think ahead to avoid ATM fees and consider all-you-can-eat-style bank accounts that offer unlimited transactions for a monthly fee. Buy energy-efficient appliances, minimise your use of energy suckers like clothes dryers and, that old chestnut, turn off appliances at the wall to help the environment and save up to 10 per cent on your electricity bill.

Communication and the internet: Hook up Voice over Internet Protocol, which allows you to make cheap-as-chips phone calls over broadband internet. Keep your eyes peeled for discount deals on mobile phone top-ups (Woolies, for example, offers 10 per cent off Vodafone phone credit). And think about turning off voice mail. Why pay for rambling messages when people can text you?

Groceries and alcohol: Plan your meals so that you don't buy a load of expensive perishables - only to watch them do just that - and go to the supermarket late at night when they may be discounted. Consider doing most of your shopping at cheaper food and grocers' markets. And cook recipes from current magazines and newspapers, which will use produce that is in season and therefore much cheaper. On the alcohol front, fantastic drops are being sold as cleanskin bottles. (And easy for my non-smoking self to say, but how much could you save by quitting?)

Other consumables: Wait for sales or shop at factory outlets and think ahead when it comes to presents. Delay buying new technology for as long as you can - prices come down fast and last year's model will be a steal. Join a library rather than buy books and magazines.

Entertainment: Entertain at home and split the cost. When you are going out, opt for BYOs. Which brings me to my personal fave, buy the Entertainment Book (about $70) from your charity of choice. It's valid for a year and gives great one-off discounts on a huge range of cafes and restaurants.

Bottom line: It's never been more important to live within your means. And if by chance you manage to find extra money - after paying the mortgage and filling the car, that is - throw it at your debts.

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