Luxury items have had to go for oil trader David Goh, who anticipates that the cost of living will continue to climb in the months ahead.

Such times call for more sensible spending, said the father of two, who in good times can earn a six-figure sum in annual pay and bonus combined.

While his family still lives 'comfortably now' in their corner terrace home in Grove Drive, in the Holland Road area, he expects his bonus to be cut by at least 50 per cent in the coming year due to a slowdown in the financial market.

Mr Goh, 48, is now less willing to 'splash out'. Instead of splurging on Bruno Magli shoes for as much as $800 a pair, he now turns to cheaper brands like Braun Buffel, which costs about half as much.

Cartier watches that cost $7,000 are also out. He will opt for lesser-known brands such as Armand Nicolet which, he explained, 'costs 60 per cent of the price but is still value for money'.

His wife Julie, 44, a teacher, now shops with their 13-year-old daughter Joanne at malls such as Far East Plaza instead of high-end retail outlets.

'A pair of trousers can cost you about $100 at Esprit but at Far East, it's almost half the price. You can save a lot,' she said.

They also have a son, Justin, who is 12.

The Gohs' monthly grocery bill has also gone up from $600 a month to $800 now. To cope, they have started buying more frozen food instead of fresh fare. Frozen food used to account for only half of their purchases a year ago but now makes up at least 80 per cent.

Using frozen oxtail for soup, for instance, has cut their bill by at least 15 per cent. 'The taste is not very different, so why not?' said Mr Goh.

This year, the Gohs have also cut back on their weekly visits to posh restaurants such as Lei Garden, indulging in such meals only once a month now.

More often than not, they now dine at home, choosing to buy roast duck and barbecued pork takeaways from eateries in Tiong Bahru, saving a few hundred dollars.

The hike in petrol prices has also hit home. To save on fuel, Mr Goh turns off the car's air-conditioning in the mornings when he takes his wife to the school where she works.

He is also considering switching from his Mercedes-Benz E200 Kompressor to a more fuel-saving E-class hybrid when it becomes available over the next few years.

'Everyone, rich and poor, has been affected,' he said. 'It will just mean that everyone has to be more prudent and live within his means.'

This article was first published in The Straits Times on October 5, 2008.