Archive for May, 2010:

is frugality here to stay?

Written on May 26th, 2010 by Jamesone shout

I don’t know about you but I have seen a lot more writings about ways to economize and cut costs lately.  Is this just a passing fad or is it here to stay?  It seems as consumers throughout the 90′s and early 2000′s we had become a binge buying nation.  Was it in fact that the standard of living had improved so much that a big house, new cars and inflated lifestyles were the norm?  Or was it a momentary lapse of sanity that caused things to get a bit out of whack?  Loans were cheap and easy to get.  You could buy a house with little money down and then turn around and take out a home equity loan to fill it up full of big screen tv’s and such, and it seemed as if everyone was doing it. 

 I have falling victim to some of these consumer flaws as well, but luckily I have such a buyers remorse on big ticket purchases that it doesn’t occur to often.  Couple that with reinventing my business 8 years ago and again 4 years ago and you learn to live somewhat frugally until things improve.

It will be interesting to see if we as a society are truly seeing a shift in consumer attitudes or if it is a temporary phenomenon.  With tighter lending standards for the foreseeable future and tighter job markets what we are seeing may in fact be a longer term cultural shift.  I guess it lasts until the next bull market and then the wild spending will commence again!

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