New shoes or a good book might take your mind off the economic gloom, but shopping without planning means money down the drain. Follow Times Money's ten tips to stay savvy.

1. Be prepared

Before you shop, work out what you need to buy and how much you can afford to spend. Shopping with a list and a budget is safer than shopping on impulse.

2. It's cheaper online

The internet gives access to a huge choice of retailers - for everything from T-shirts to fridges. A recent survey for Which? magazine indicates that online retailers are “generally” cheaper than the high street, with the best deals on books, DVDs, sports equipment and homeware. Buying online should be safe, provided that you take precautions outlined at getsafeonline.org, the government website. For a list of the best online shopping sites, click here.

3. Compare prices

Comparison websites, such as Kelkoo.co.uk and Pricerunner.co.uk, list the prices of goods at both online and high street stores. No site has full market coverage, so it is best to check several, as well as retailers' own websites.

For example, a search of Kelkoo finds the 8Gb iPod Touch priced from £139 at Amazon.co.uk to £177 at Misco.co.uk. Pricerunner, however, finds it for £129 at Dixons.co.uk. Users of Mysupermarket.co.uk can compare the cost of their grocery shop at Tesco, Asda, Sainsbury's and Ocado, and order via the website (but note that Aldi and Lidl may be cheaper).

4. Claim cashback

The companies behind cashback websites make commission by referring users to retailers and then pass some, or all, of it to members. Quidco.com, for example, offers 7 per cent cash back on games and DVDs at HMV.com.

5. Earthly rewards

If you use the relevant stores, sign up to free loyalty schemes, such as the Boots Advantage card, the Nectar card, the Waterstone's card and Airmiles. Points can be earned and redeemed in stores and online. The Boots card, for example, gives four points, equivalent to 4p, for every £1 spent.

6. Now is the winter of our discounts

Even after the January sales, watch out for unseasonal promotions on the high street - the financial crisis has hit retailers hard and many are desperate to generate business. Compare apparent bargains with prices online.

And remember that cheap does not always mean good value. Clothes shoppers should check LynkU.com for details of sales and sample sales across the country.

7. Buy second-hand and salvage

Scouring charity shops, markets and the internet for used goods can turn up outstanding bargains, especially in clothes, books and furniture. Architectural salvage stores offer old - often antique - home and garden goods at knock-down prices. Items listed at Salvoweb.com, a portal for dealers, include reclaimed York-stone paving, washbasins, church pews and cast-iron radiators. A set of 20 Edwardian oak boardroom chairs, meanwhile, is listed at £745, or £37.25 a chair.

8. The incredible bulk

Most products work out cheaper when you buy in volume. For example, a 12-bottle selection of “October fine wines” at Waitrose.com costs £99, saving a total of £44 on the usual price. Many retailers run multipurchase promotions in-store and online, so it can pay to shop with friends or family to share savings.

9. Talk is cheap

Haggling has a place, not only on holidays to far-flung destinations, but also on the high street. A straight request for a discount can work, even in chain stores, but you are more likely to get money off if you can show that a product is better priced elsewhere, or that it is shop-soiled or obsolete, such as a portable CD player.

10. Why pay if you don't have to?

Members of the Freecycle network, at uk.freecycle.org, list goods they no longer want, which other members can collect from them - therefore saving on disposal costs, as well as reducing the amount sent to landfill. Items range from sofas and rugs to cars. Free items are also listed at Gumtree.com.

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The best holiday bargains

Five websites

Kelkoo.co.uk

uk.freecycle.org

Mysupermarket.co.uk

Quidco.co.uk

LynkU.com