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Will “Forced Frugality” Last?

Lately I have been hearing about the concept of “forced frugality” from the media and my peers.  Many colleagues and  family members say they feel a need to be frugal in this economic climate due to job loss and investment losses.  With this shift to frugality it seems that shopping at thrift or dollar stores is suddenly trendy.  However, will this new wave of frugality last? (Recessionwire co-founder Sara Clemence isn’t so sure it will.)

Right now some households have no choice but to be frugal.  With job losses, credit card companies aggressively cutting credit lines, and home equity lines drying up due to the drop in real estate prices, many are forced to be conservative with their cash.

If these households were not particularly thrifty previously, this new financial reality may be painful.  There is definitely a learning curve to spending less.  You have to research cheaper alternatives to everything in life and find creative ways to cut expenses.  Another issue with a sudden conversion to frugality is that many things that were taken for granted may become luxuries.  Several friends have told me that they are eating out less, and some are buying less entertainment.  It is understandable that this sudden onset of forced frugality can cause quite a bit of anxiety because people feel that they have to work harder to live on less…

Read the rest of this article at Wise Bread.

Tags: frugality, new frugal