"Personal luxuries, holidays and restaurant meals are off the menu as Australian families look to tighten their purse strings," according to research by ING Direct.

So what are some luxuries we can all afford on a budget? I guess that depends on what luxury means to you.

Many of my girlfriends (as a former model myself, they're mostly ex-models) have recently either returned to their natural hair colour, so they only need the hairdresser every three months, or do their own at home.

One particular group of industrious friends in Los Angeles has started organising their own "beauty days", where they do each others' nails, facials and hair colour after buying the products from discounted hair-care and beauty supply stores. Think about it: shopping, beauty and budgeting. It sounds pretty good to me!

Also they buy scented candles and bubble bath (for the foot spa) to complete the ambiance and every now and then they get a good fake-tan product which they can all share. They also take turns having it at each others' places.

Another couple I recently read about gave away all their worldly possessions so they could travel with their baby around Australia. The only puzzling thing is they also gave away their money and their car; I am not sure how they're going to pay for transport for their "social experiment" around Australia. I think they might have taken the "time" luxury a little far. Still, maybe that's luxury to them. Good luck to them!

For birthday dinners, people are reportedly choosing cheaper restaurants or opting for home-cooked meals. I have to say I am split on this one. I love home cooking but I am also a sucker for cheap Thai.

Virginia Graham is a mortgage broker for Model Mortgages.

Your say: What "luxuries on a budget" do you find yourself having? How have you been making your dollar go further?