The New America Is Frugal
Experts Say Economy Is Taking a Turn for the Better — What Have We Learned?
I know you may have thought you’d never hear the words good news and recession in the same sentence but that time has perhaps finally arrived. Financial experts are saying that signs are pointing towards an economy finally on the path to recovery, however long and arduous that road may be.
Now I’m no finance analyst, and this is not going to be some boring discussion about the factors that brought the country to the brink of depression, but what I’d just like to explore is how Americans have come out of this crisis. One thing’s for sure, though. We didn’t emerge unscathed. More resilient maybe, and with a few lesson tucked under our belt. Gone is the shop-’til-you-drop, devil-may-care mentality that was more often than not, dependent on easy credit from (then) low interest credit cards to home equity loans. But no sir, not anymore. The new America is now frugal. Here’s how I know that this is so:
• Carpooling or public commute is in. Prices of gasoline are slowly eating up a big chunk of our daily expenses. Because of this, it has become more practical to just take public transport or arrange for carpooling with colleagues. Compared to last year’s figures, the number of people who carpooled grew by 0.3%, while those who commuted jumped by 5%.
• Dollar stores are showing strong sales. Been to a Family Dollar, Dollar General, or Dollar Tree outlet lately? If you’re like most of us, you probably have. At a time when most retail businesses are cutting back and even closing shop, dollar stores have finally become mainstream for most consumers.
• More Americans are saving. From being nation of big spenders, America has become one of prudent savers. Five years ago, the rate at which people have been saving was at less than zero percent. As of May this year, the savings rate is already at 6.9% — and that’s even with interest rates at a record low.
• Less people are borrowing. Not that we could if we wanted to. Qualifications and terms for availing of credit have become so stringent that those who do want to borrow money find the proverbial doors slammed in their faces. Still, the general attitude prevailing with most people is to stay away from credit as much as possible.
• We don’t find sunny climates as tempting now. Or maybe we still do; but in the face of a slump of this magnitude, people have opted to stay put rather than move around. For the first time in so many years, Florida’s population is actually decreasing. And the same goes for taking family vacations too.
• We’ve learned to make do without many conveniences. Families have discovered the joys of just eating in on Friday and Saturday nights, and then watching a DVD. Some are canceling their cable subscriptions, bringing lunch to work, and taking advantage of events like the National Museum Day (free admission on that day) instead of sending their kids to science camp.
Whether saving just $5 or $500, it’s apparent that many Americans have realized that sometimes, the basics are just all we need.
photo credit: Rich B-S
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Totally agree – the new America is Frugal. With the state of the economy, we can’t afford not to be. I try to be as frugal as possible without being cheap. Started with cutting down on eating out, buying only items needed (not wanted) with fewer splurges every now and then and scrutinizing bills to see if there’s any trimmming possibilities. Come to find that I’m paying over $100/month on my cell phone and thought to myself with a bunch of carriers out there, there must be a better deal! Hooray for that thought because it prompts me to do research and discover StraightTalk. Cuts down my bills by $70/month! This so far has been my biggest single item saving. And I’m on a mission to top that!