Easy access savings accounts are not the only ways of saving - paying off / overpaying your mortgage, paying into your pension or opening up a stocks and shares ISA are all ways that should beat inflation over time. You also need to establish a safety net of savings to cover things like redundancy, the boiler breaking down, major repairs on your car - all of which require a decent level of savings. One of my old bosses always kept enough in cash savings to pay his mortgage for a year if he was made redundant - that may be a bit much but a 3 to 6 month salary emergency fund wouldn't be. Inflation is being driven by the things that you can't save for - food, utility bills and petrol - so your argument that it is better to buy now as your money will be worth less in real terms in a year or so is a little flawed. I bought a TV two years ago for £1,000 which I can now get for £500 so in fact negative inflation on that purchase and the one I bought 20 years ago for £750 (it was a good one at the time) is still going strong and won't be replaced until it finally breaks (it may have a small screen but there is nothing wrong with the SD picture) although I could afford to throw it away and buy a new 3D one.

I agree with Skywalker - don't buy something unless you've got the savings to pay for it. Even if you have take a step back and wait a week or two before parting with your money to work out whether you really NEED (not want) whatever it is you are going to buy. Most household items can be acquired for free (or rather just the cost of picking the up) via freecycle and I can't think of many (if any) consumer goods that are essential to life.

To my mind to buy something (other than a house) intending to pay someone else interest is a bit daft - would you really buy something if it was 20% more expensive ? That can be the same as buying something on a credit card but not paying it all back for 18 months or so.

I could understand the buy now advice if what we bought was British and hence we were supporting British jobs but most of the time the stuff we buy is made abroad !

Good advice in normal times but as Miliband and the deputy PM have said in their speeches in December and January we are facing difficult times and household income levels and spending have become increasingly painful to deal with for many families and individuals. With inflation at around 5% and savings interest rates averaging 0.5 to 2.25% a year less 20% tax the value of savings becomes eroded and the purchasing power may be that the person should have bought it when they had the money and not six months later with a possible price rise of 2% and the proportional tax deduction from the money saved occurring over that period resulting in the person needing more money at the time of purchase to make up the shortfall. This is the general situation around the country at this time with some exceptions. The advice now is to buy things while you can, put any excess cash into savings like an easy access ISA or if you do not have sufficient money consider buying it using a credit card choosing the one with the lowest interest rate for purchases if you have more than one card or choose the one with a slightly higher interest rate and a good points, vouchers or other benefits scheme. This combination can address a large part of the shortfall but remember the interest has to be paid on the transaction on the card or with another type of credit from a credit broker or reputable moneylender.
LATE ITEM As an alternative to an ISA you could consider a savings account with a bonus interest period usually lasting 12 months and then reverting to the standard rate for the account unless a new bonus period and rate is announced around that time. These accounts can pay 2.4 to 3.1% a year including bonus and you should be aware there may be restrictions on the number of withdrawals allowed during a year. Beware regular savings accounts as the returns for a year are not as high as the interest rate stated when you take into account that not all the total amounts paid in have been in the account for all that year, for example a rate of 4% advertised multiplied by 12 times an agreed monthly deposit should then be multiplied by 0.52 or 0.53 to estimate the total amount of interest likely to be added to the account.

Have no borrowings except a mortgage and possibly a car loan.

Don't borrow, SAVE.

If you can't afford something, save up for it, and if you can't save, then you can't afford it.

Don't take financial advice from a person in a bar.

NEVER let assumption rule your expectations, the Americans say assume stands for makes an ASS out of U and ME.

If you need any further advice I am here!