Mar 19th, 2009
The Frugal Comeback?
There’s more and more positive signs that frugality is making a comeback (although some of those are counter to the economy making a comeback).
Savings rates are up! Not very long ago Americans had a negative savings rate–they spent everything they made and more. Today, possibly in response to the economic uncertainty and the plunges in their retirement accounts, the savings rate is now positive at 5%. Enough? Probably not, but at least it’s actually positive.
In addition, business at auto repair shops seems to be up. Instead of replacing cars (and in spite of very low interest rates and very attractive bargains from car dealers), people are interested in repairing them due to the lower cost.
For those of us who are frugal, things seem to be turning our way. But perhaps the biggest question is whether or not this new found frugality is going to make the economic recovery slower. After all, this is a consumption centered economy, and money that’s put away is not money that’s making its way through the economy.
Still, it’s refreshing to see more people saving! I’m very impressed. Keep it up, gang!
[...] Ryan Suenaga presents The Frugal Comeback? [...]