Consumers are cutting back on one hand to afford treats on the other.

[Sara Noel]

http://www.orlandosentinel.com/featu...home-lifestyle

[homesteadmamma]

But let's face it: For the most part, we are not a nation of savers, putting aside 10 percent of every paycheck for a rainy day. Economists have conservatively estimated consumer debt at $9.5 trillion.

This says it all.


btw - I don't agree that the magazine Real Simple helps anyone live a simple life or learn anything about frugality. It's a magazine that has tons of advertising first off and along with that there certainly aren't many stories on frugality as we see it.

[homesteadmamma]

But economists also worry that consumers may simply be bargaining themselves into deeper debt.

"The new frugality is the 'lack of frugality,' " says Ken Mayland, chief economist at Clearview Economics.

"My point is consumers will say one thing, but often behave a different way."

Based on studies he has reviewed, Mayland says about one-third of consumer disposable-income spending is funded by penny-pinching. But the other two-thirds are coming from savings accounts, which are shrinking.

"During the third quarter of this year, consumer savings was a minus 1.1 percent. It's showing that people are putting less aside from their current income in order to foot these higher bills." Mayland says it also shows that people are paying for more items with their credit cards.

This is going to hurt people when they enter retirement, he says. "A dollar spent today means two or three dollars you won't have in retirement."

And that's the cost of a tall skinny latte.

He said it all when he said "the new frugality is the lack of frugality". I agree 100%

[Emerald_Mommy]

Interesting article. I smiled when I read the line "folks are not reusing their aluminum foil". I though, some do.

I find the lack of understanding about how money works very sad. I've actually talked to a woman in my church who thinks if something is on sale 75% off and they say take another 25% off, then it's 100% off. Um, no. I guess some people were just not paying attention in math class.

Frugality for me is not buying five inexpensive things so I can buy one extravagant thing. Frugality is making careful choices day to day so that our future lives are just as good as our present one.

[Lori Biever-Launder]

Real Simple is nutso! So is is Budget Living. I will NOT pay $48.00 for a shirt for my DSs, for goodness sake!

There are articles in there that talk about how to redecorate your apartment "on the cheap" and they are talking $40,000.00 . Pulllleeeeze. My idea of redecorating is painting the walls and buying a new comforter set (for the master bedroom). Amount spent? About $200.00. The difference in it and the Budget Living makeover? Priceless.