Over the past few days I've had a couple of conversations with colleagues that have crystallized a recent change in my personal business philosophy. My own business of writing books and consulting for aspiring authors is very cyclical -- most of my business comes from referrals from happy clients, and I never know when a new customer is going to walk through the door. When business is tight, I automatically go into austerity mode -- I don't spend a dime on my business unless I absolutely have to. But when I've got LOTS of business, that's when I typically go into spending mode -- buying new computers, monitors, software, printers, and the other things I need to upgrade my office.

However, that's all changed.

In today's recessionary business environment, there is no longer a spending mode -- it's austerity mode all the time. Sarah Edwards -- my coauthor on Home-Based Business For Dummies said it best in her Eco-nomic Well-Being blog when she reminded me of this old Depression-era saying: Use it up, wear it out, make it do, or do without.

Here's a very recent example for me. For the past year or so I've been hobbling along with Microsoft Office 2003, which includes the older versions of Word and Excel. I figured, why buy the newer Microsoft Office 2007 when I can get by with the older version? However, more and more of my clients and colleagues have made the switch to the newer version -- which generates files that my old version doesn't like. Making the change has therefore become a business imperative for me. So last week I finally relented, ordering a copy of Microsoft Office 2007. But did I order the "all-the-bells-and-whistles" Professional Full version for $400? Heck no. Although affording the $400 pricetag would be no problem for my busy business, I decided that I could make do with the Home and Student version for $75.

Austerity IS the new black.