The 'frugal future' has arrived

re: The 'frugal future' has arrived

P.O. Carl — Thu, 20 Nov 2008 03:53:26 GMT

Well folks, how does everyone like "globalization". We are just at the start of what will be a long economic slide for people in the US. The only result from NAFTA and other free trade agrements is a lowering of the standard of living here. When we import everyting we use, there are only service jobs left. And now, even service jobs are going away. There is no way to compete with the low wages and no benifits from foreign manufacturing. Cheap consumer goods kept us spending, and equity in homes kept the checking account going. But that is all over now. It's reality check time. I do feel for the many people who will be unemployed from all of this. Save now, don't buy imported junk for Christmas, keep what little money we have left here.

re: The 'frugal future' has arrived

Lee — Thu, 20 Nov 2008 03:27:08 GMT

Jon, you are right when you say that there are few places to save your money that pay a good interest rate. If the savings interest rate is low, people will look for better places to put it. So, If you are selling stock, and it looks like a better deal, people will put there money there. Now, you need to keep people in stock, because it makes your company more money. Truth be told, Wall Street doesn't want you to have any other place to put your money.

If the Fed would start a savings program that payed 1 percent interest above inflation, people would put there money in it. But again, Wall Street doesn't want you to have a option like that.

re: The 'frugal future' has arrived

Bill — Tue, 18 Nov 2008 23:30:25 GMT

what does anyone expect? The US economy has been built on quicksand for the past 16 + years rather than on a solid economic foundation with the quicksand being subprime mortgages, the envoge or infashion term for "substandard" mortgages used to purchase and refinance housing rather than the "old fashioned" 5-20% down payment with a long forgotten thing called a "debt to income ratio" that would guide borrowers as a way to buy within their means. Top that off with FannieMae/Freddie Mac guaranteeing everything they could get their hands on at taxpayer expense of course, as they must increase homeownership, then add Wall St. jumping in on the bandwagon with their fancy shmansy swap defaults and CDO's based on quicksand of course, as they must get their bonuses, and then selling trillions of these things oversees. Bill

re: The 'frugal future' has arrived

Abigail — Tue, 18 Nov 2008 00:57:05 GMT

To Michelle,

Your story is indeed upsetting and tragic. This is probably something you've already explored, but I'm wondering: Don't you get any death benefits from Social Security? It won't be much, but it would help pad things, wouldn't it?

My husband and I live frugally because I am on disability and he lost his job right before the wedding. He is now working with the Dept of Vocational Rehab, since he has some disabilities of his own.

We have credit card debt. Most of it from basic needs that our income couldn't cover. Some of it we could and should have done without. It's a learning curve. But it's one I at least got to choose. You have been thrust into it. And I wish more people who were spending as fast as the money came in could hear your story. As someone who ended up disabled early in life (age 19), I know how quickly everything can go to hell. Which is why our past decades of overconsumption are so painful to consider.

Like you, I get awfully sick of hearing about how everyone is "cutting back" to normal, sane standards. And all this great frugal advice? What happens when you're already doing it? And what happens when you can't effect change in a meaningful way by getting a second job? Or even a first one?

I rolled my eyes at having this cutback in consumer spending be called "tragic." Yes, I understand that less spending has broader implications for the economy and employment. But really, enough already, people. You rode the high. You have to now weather the low.

Most of the frugal people I know are hoping (probably vainly) that the American public takes away a small lesson from this. Of course, it didn't take us long to forget the lessons of the Great Depression, so who knows...

ipickuppennies.blogspot.com

re: The 'frugal future' has arrived

jon — Mon, 17 Nov 2008 23:34:29 GMT

There is a lot of talk about why people don't save like in the past. I don't hear much talk about the fact that there was a time when you could put money in a savings account and earn more than inflation. The low interest rates at the Fed have fueled a leveraged boom and bust. They've also made it hard to beat inflation on your savings. And has the stock market even broken even over the past ten years? If you want people to save, they need a safe and sensible place to put their savings. Where is that exactly?

re: The 'frugal future' has arrived

nan — Mon, 17 Nov 2008 22:30:10 GMT

i agree with sue. the middle class need more write off's. after all, we are the back bone of this country. we need all the help we can get.

re: The 'frugal future' has arrived

Rita — Mon, 17 Nov 2008 21:38:01 GMT

To Sue

how about instead a tax deduction for paying more than the minimum morgage payment? Or how about a tax credit for people paying off credit cards early, or each month to zero balance?

-now that would get us out of this economic bind quicker!

re: The 'frugal future' has arrived

Mike — Mon, 17 Nov 2008 21:18:13 GMT

The problem "We have a population of "Consumers" {should be a -4- letter word} rather than Citizens. They know how to "Borrow" but not how to "Budget". "Consumer is a Derogatory & insulting Discription for a Citzen.

re: The 'frugal future' has arrived

Sharon — Mon, 17 Nov 2008 19:31:47 GMT

As one pundit reminded us, think about Roy Scheider, when he saw the shark for the first time, turned to the boat captain and said, "Captain, I think we are going to need a bigger boat." The boat we have gotten ourselves in is being rammed relentlessly and the shark is laughing at us, as are the CEO fat cats who are swimming with the sharks.

re: The 'frugal future' has arrived

entrepreneur99 — Mon, 17 Nov 2008 05:50:40 GMT

Try using the PennySaver if you live in California. Being frugal is actually being money wise. The money you save you can reinvest it into stocks, bonds, real estate. I use the PennyySaver for restaurant coupons, to find a mechanic and even to shop for insurance.