How long will the 'new frugality' last?

re: How long will the 'new frugality' last?

Mike — Wed, 06 Aug 2008 21:13:39 GMT

Interesting that most all of the responses are coming from the frugal minded readers. Does that mean that the non-frugal are not even reading this or are ignoring this article (and other similar articles/messages) which would further back the assumption that those personality types will go back to their old ways when given the opportunity?

I personally am a saver too - but while being practical and frugal, I can't sit here and say that person X is stupid because they spend. There is no reason why a hard working individual(s) shouldn't spend a few of their hard earned bucks along the way - AS LONG AS THEIR FINANCES ARE IN ORDER FOR NOW AND THEIR FUTURE. The problem is the attitude and feeling that a person feels they deserve something - and as soon as that mentality takes over, the spending will never stop - simply because most people are not strong enough to pull themself back over to the saving side. One of those purchases leads to another, and another....most people just do not have any will power!

To me, the truly smart people are the ones who can find the fine balance between saving and spending, to the point where they have a safe, financially secure future, with no debt what-so-ever, while also being able to enjoy some of the more extravagant things in life (whatever they may be, within reason - and in relation to that person(s) level of wealth).

re: How long will the 'new frugality' last?

James Pigg — Tue, 05 Aug 2008 23:14:39 GMT

Why does everyone want to point the finger at someone else for their own stupidity? Point your finger at someone or something then take a good look at your hand, you have one finger pointing at them and three fingers pointing back at yourself. We have only one person to blame, ourselves, for the mess that we are in.

re: How long will the 'new frugality' last?

atticus finch — Tue, 05 Aug 2008 22:01:17 GMT

some people choose to be frugal because they like that lifestyle. some people cant spend money because they are poor. the problem is that alot more people in this country are becoming poor, and are being forced to live a frugal lifestyle. I dont think that there is anything wrong with wanting to travel, eat at nice restaruants, and having nice things... I just think it stinks that people have less money to spend on the things that make them happy, and all of the wealth is being transferred to a very small percentage of people.

re: How long will the 'new frugality' last?

GSR in TH — Tue, 05 Aug 2008 21:08:52 GMT

I had anticipated a slowdown in my business (real estate appraisals) due to the tighter lending standards (and the fact that I refused to be an appraisal whore who made any number work). What's crazy is that I cut back, sold my Grand Cherokee to my dad (for $10k less than he was going to buy a used pickup for), and cut up the credit cards. Now I am paying down my debt faster than I ever have, have more money in the bank than I have in the past 5 years, drive a 1992 Olds 88 I bought from a little old lady, pay $50/year for plates & $500/year for insurance, skipped buying the plasma TV, etc. I purchased a 1 year gym membership at a local hospital which gave me 3 months free since I bought during a promotion ($20.50/month for unlimited use) and use that 5 or 6 times per week and feel SOOOO much better. I agree with the author, we need to define wants from needs. I do splurge once in a while but when I do, it's with cash I've saved. I don't advocate turning back to caveman times (which a lot of environmentalists want us to, no oil, no coal, no gas). But I do think we need to get back to living "below" our means so we can save for retirement. I also agree with the posting that it's nice now that when the bills come in, they get paid THAT DAY. If I have an emergency expense come up, I can handle it. It's all about learning to ask yourself "do I really need that".

re: How long will the 'new frugality' last?

em — Tue, 05 Aug 2008 20:52:34 GMT

Great article and you are right, people forget. Just look at how kind people were to each other in NYC after 9/11. Several years after that--the rudeness returned.

I find, though, that since I was forced to cut back that it taught me a lesson. I never watched for sales or used coupons at the grocery store. Now that I am armed with this information, why on earth would I spend $100 for something I was paying $50 for...and I also continue to drive slowly to save gas. so these new habits did change me. but now that the economy is slightly bette,r I do admit I reinstated my starbucks habit. but you know what? I do pretty well along the way and learn my lessons so a little luxury is OK by me.

re: How long will the 'new frugality' last?

rob — Tue, 05 Aug 2008 20:16:22 GMT

I for one will keep being frugal as I have been all along. I hope others will learn from this current state of the economy. If you have the extra money in good times, it should be saved for times like these, not spent on excess

re: How long will the 'new frugality' last?

Victor — Tue, 05 Aug 2008 20:10:27 GMT

Thank God my parents taught me frugality ..... being immigrants, they understand very well the value of hard work and money. The problem with the word 'frugality', is it's all relative. One person's frugalness is another person's cheapness.

We are being trained to spend anything and everything we can get our hands on. First spend all 'your' money, then spend all of someone else's money(credit, your parent's or spouse's or whoever you may know remotely) and then try real hard to get more money that you should even think of borrowing and then spend all of that ASAP! This practice has always been absurd and ridiculous to me and all one is doing is making someone else rich at the expense of the rest of your future.

re: How long will the 'new frugality' last?

Don — Tue, 05 Aug 2008 19:44:46 GMT

It is gratuitous to feel sorry for ourselves for the current economic hardship. Let’s not blame ourselves to the point where spending on anything becomes a shameful act. Let’s not forget that Americans’ consumption is the biggest vehicle for the global economy and it is extremely important to other nations, including China.

It is fair to say that some of us spend recklessly but there are many more financially responsible people who will overcome this. Americans are hard working people who are also generous. I know this because my parents came from South Korea where its economy was built on America’s consumption of South Korea’s exports during 70s and 80s. During the Korean War, it was American middle class families who were sending basic necessities to help South Korean refugees. My parents survived North Koreans’ atrocities by eating chocolates given by American soldiers and clothes sent by American families.

Americans work hard to spend their money and we deserve to get some credit for the economic growth in China and other third world nations that are dying to sell their products to American middle class families. Without America’s spending, a country like South Korea would have never survived its poverty.

Yes, it is a difficult time and we should all spend wisely, and there is no doubt that Americans will overcome the current economic struggles. Yet, let’s not kill ourselves with an unnecessary remorse over our previous spending behavior that may, or may not, have contributed to the current problem.

re: How long will the 'new frugality' last?

Erik- Omaha — Tue, 05 Aug 2008 19:40:29 GMT

There is a lot of common sense in this article but a distinction needs to be made about what people 'should' do and what they are free to do. I agree everyone should live within their means, save $$ and spend wisely. But (instead of government bailouts) they should be allowed to reap the consequences of those choices when they act foolishly. Human nature is what it is and many will not learn from history or even personal examples.

re: How long will the 'new frugality' last?

rich — Tue, 05 Aug 2008 19:39:52 GMT

Two rules I have found useful

Spend less than you earn - happy life

Spend more than you earn - unhappy life

I don't pay interest, people pay me interes.