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…

How to Survive and Thrive in the Recovery

An ounce of a prevention is worth a pound of cure, they say, and many of us wish we’d thought ahead about the downturn we’re in (it’s not like you couldn’t see it coming, with teetering mortgages built on nothing and monolithic banks crumbling all around).

So, lesson learned. Now we look ahead to recovery. What are you doing to prepare? The signs of an end to the recession are inconsistent, at best, with economists and banks — and politicians — all over the map on their predictions. But the day may come when the economy is robust and healthy, and you need to be ready for it. No longer will lavish spending be something you want to flaunt. Frugality is in; it’s here to stay. If you don’t want to be caught all bespoked and besotted with pecuniary privilege, you’ll need these essential tips for slimming down now, before it’s too late (with apologies to U.S. News):

1. Rethink your lifestyle. It’s okay to live at home for a little while. Call it shag chic à la 1970s basements.

2. Couponize. They’re better than food stamps.

3. Downsize permanently. Ditch the manse and live on the road. It worked for Jack Kerouac.

4. Get competitive about it. Isn’t there a reality show about scraping and scrounging? Oh, right. The Real Housewives of New York City…

Recession Briefing 6.5

What you need to know today to survive and thrive in the recession.

The recession has sparked a growing phenomenon of people dressing up as superheroes to perform community service, help the homeless and even fight crime. Superheroes also emerged as figures in the Great Depression. (CNN, Recessionwire)

Instead of feeling self-conscious about spending less, people are flaunting their frugality. Both those who have lost income and those who simply fear they may become at risk are part of the new discourse. (Washington Post)

The official unemployment rate doesn’t include millions of “involuntary part-time workers,” or those who grew discouraged and stopped looking for work. Once they are added to the unemployment mix, the April rate would be 15.8 percent. (Associated Press) Are you among the “Screwed” by the economy? See our Laid-Off 101 guide...