It has always amazed me how quickly American, mass, opinion and behavior can change and that's exactly one of the big problems when it comes to personal finance behavior: we too easily accept that it is ok to over leverage and buy a home we cannot afford when times are tough and stop our spending and try to increase our savings when times are bad.

What we need is less fluctuations in how we lead our personal finance lives, so we need to:

- save more

- spend less

- live below our means

- take advantage of deals for consumer products when available and when we need the items

And, simply, use logic to arrive at conclusions like how much to save and what to do with our money.  We are almost too "trendy" in the US - we need to start making our own decisions based on our own personal financial situation.

Best,

Vince

I guess we will become closer to UK in living standards tha what we are currently - and that is not necessairly a bad thing. We will use more public transport where available, cut spending and begin to save. I am amazed at how much of my salary I saved while spending a year in UK. Now even after a hike and a promotion and my wife working at a good job as well, we hardly save in US. our suburban house and all the costs that go with it eat away all of our money. And it has now dropped in value to!

The most concerning thing might be that even frugality has to become a trend in order for the majority of Americans to start reconsidering their finances. It's not rocket science to figure out that cutting back on luxury lattes or selling things on ebay/craigslist can get some cash back into our pockets. However, for some reason most people don't start doing so unless the rest of the country is. Many of us have student loans looming over us, but for some reason instead of saving, we spend all the time. Not to speak too naiively, but maybe more of us can budget better if we're all suffering together.

http://www.justthrive.com

I sense a bit of wish to toss around a bit of "blame" at people who are "indulging" their taste of lattes or spending money. The fact of the matter is that Americans are intensely marketed every moment every day. They do things as a group because that is the current group culture. Saving wasn't really possible in a business climate that hasn't given significant raises to the average worker since 1974. It is nearly impossible for most Americans to AFFORD even an average lifestyle anymore. And if you graduate college you have huge college debt. So when and where can you save? Maybe if you live in a closet and shop at Goodwill every day if you shop at all. Maybe. People say "Oh now you can save!" Well not really when your salary is still barely above minimum wage and expenses and interest rates keep shooting up. Plus medical expenses that arrive unexpectedly, the car insurance goes up  and the car breaks down...Hmm.....SAVE??????

Agreed on education.  My foreign relatives from Europe and Australia cannot fathom how I can be taking out loans to get in debt to pay for college (heck, neither can I!).  I think that's a big contributor to why people are so in debt, and perhaps even why we trail behind other countries in terms of education.  

To Kami,

We can have a life.  But we should not all be elpecting to live better then our parents our first year out off school.  I recomend ready any of Dave Ramsey's work.

Those other countries have a socialist bent and that is why their taxes are SO HIGH and they can afford to fund college.  Not everyone goes to college...shouldn't the people who do attend pay more for it than the people who don't?  There are ways to cut down on costs.  Here in WA state if you get have the grades (and very importantly, are a grade or so ahead in math ) you can plan and go to community college during the last two years of high school for FREE!  A student has to be serious and get their act together early and sacrifice the fun of some or even much of high school but is it worth it to get the state to pay for the first two years?!   Transportation is the student's responsibility but it can be done.  Just learn to get serious about life at a younger age and teach your children responsibility.   That way with little or no debt when you become a parent you can start 529 investment plans for your children the day they are born and their educations will be in the bank!