My mother is the sort who won't let a tube of toothpaste die in peace.

She has a small plastic device that has a slit where you slide the base of the tube through. It ensures you squeeze the paste from the bottom and work your way up, leaving nothing to waste.

When we're down to the last blob of paste, she will insist that there is just that bit more to be used.

So she'll cut the tube into two and scrape what little is left inside the two halves. There's usually enough toothpaste for another two or three brushings.

It's a habit that drives me up the wall.

Mum, I'd say each time I see a scissored- off tube in the bathroom, it's just toothpaste. It's all of, what, $3? What's there to save? Besides, isn't it unhygienic to leave the paste exposed like that? And surely life is too short to be wrestling with a tube of toothpaste?

It's not the only frugal habit she has.

It's near impossible for me to pare down and spring-clean my wardrobe because whatever clothes I throw out will be rescued by her, packed into plastic boxes and stored.

Her excuse is, "In case the fashion comes back", but I know it's because it pains her to discard anything that is still wearable, even if I've long grown tired of it or it has become scarily unstylish.

For T-shirts that are yellowed and really unwearable, she'll recycle them into rags to clean the house. I can't understand why she can't just throw them away.

She hates to see food left uneaten and nags me when I don't finish what's on my plate, even at my age. My argument that you should stop eating when you're full - never mind if there's still food left; it can't be helped; that's how people get fat - cuts no ice with her.

Eating out with her at nice restaurants is also no fun because she will always comment on how this and that isn't worth its price, and how you can cook so much more cheaply at home. (Yes, I know that, but we go out to eat because I don't want you to break your back cooking every day. Besides, I like trying new dishes, enjoying the ambience and being served.)

When I complain that she's too thrifty, she'll trot out the same old World War II, tapioca-sweet potato stories of how there was so little to eat during the war and if only I'd lived through those times I'd understand how it's a sin to be wasteful.

As you can tell, frugality isn't my strong suit.

I'm not a spendthrift - I took part in an online poll and got a "You're not frugal, but you appear to be reasonable with your spending habits" rating.

But I also believe that the only reason one works and earns money is so that you can spend it.

I buy things based on what I need and what I want. If I see something I like and I can afford it, I will buy it. If I'm tired of it or it has outlived its use, I will discard it. I feel no pain doing so.

Maybe it comes from being (yes!) single. I spend on myself what I like and how I like. I'm not beholden to inform, explain or justify to anyone how I use my money, and neither do I need to get "approval" for what I spend it on.

I don't have to save beyond what I'll need for my future. I don't even buy life insurance because there's nobody I'm leaving behind who will need looking after by me.

Recently, though, I've been thinking that I should start being more careful about how I part with my money.

Like everyone else, I've been hit by the rising cost of living. I feel it most when it comes to transport.

Just a year ago, a full tank of petrol cost me about $85. Today, I pay about $120.

A year ago, I would top up my car's cashcard with $50 once every month. These days, $50 won't get me far, not when ERP gantries are everywhere and carpark charges have gone up. I now top up my cashcard with $100 each time.

Price increases can be seen across the board. My favourite soy bean drink stall has raised its price by 10 cents. A "thunder tea rice" stall that I like has cut costs by serving less rice.

It's now almost impossible to get an entree at a decent restaurant for less than $25. At a cafe the other day, I baulked when I saw that a tiny salmon sandwich cost $7. Birthday cakes, which I've always known to be in the $30+ price range, can now cost more than $50.

The rate of inflation is rising faster than my salary, which is bad news. It is time I manage my money better. Thing is, I don't know how.

I'm not a savvy investor and have no idea how to use money to make money. The bulk of my assets is in fixed deposits that give me less than 2 per cent interest, and in a POSB account; the rest is in stocks that have, alas, lost half their market value. I have no head or heart to look at bonds, equities, hedge funds and the like.

So what should a person like me do if I don't want inflation to bleed my bank account dry? The only way is to be more frugal, but how?

Like everyone else, there's a pattern to my spending. There are things I must splurge on or I'll be unhappy, and others I can live without.

For example, I spend freely on food, cosmetics, clothes, shoes, bags, books and holidays, and my biggest big-ticket item is a car. But I'm a scrooge when it comes to liquids (I don't drink alcohol), jewellery, electronic gadgets, homeware and kitchenware, and I don't buy property.

One trick, I suppose, is to still spend in the first category but to cut back a bit. So instead of buying a new car now that mine is five years old, I'll hold on to it for a few more years. Instead of spending seven nights at a spa in Thailand, I'll trim it to four. Instead of buying two shades of lip gloss in pink, I'll get by with one.

Another way to keep a lid on my expenses is to make sure items from my second category don't ever get onto the first. Heaven forbid that I should develop a love for diamonds or snazzy kitchen aids.

But while it's good to be more thrifty, is there a line you cross before you become penny wise and pound foolish? Does it always pay to buy the cheaper version of an item?

I've learnt the hard way that it doesn't. Some things aren't worth sacrificing quality for even if they cost more, especially when it's stuff that matters to you.

If clothes are an important part of your life, then between buying one expensive cashmere sweater and a few cheaper woollen sweaters, opt for the former. You'll feel happier wearing it, you'll get more compliments and it will last you longer too.

But if, like me, IT devices mean nothing to you, then between buying a branded computer printer with all the bells and whistles and one that is merely functional, go for the cheaper latter model.

I suppose it's working out your priorities and deciding where to cut back.

There's much to be said about tightening our belts, having more self control and being frugal.

But, sorry Mum, I'll still draw the line at sawing off a tube of toothpaste.

This article was first published in The Sunday Times on Aug 10, 2008.