Is Frugality the New Black?

Let's face it - there will always be rich people. Even during the Great Depression, while millions were starving and destitute, there were those who remained wealthy. As we head into tougher economic times, there will still be those around us who have money and will display their wealth conspicuously. On a global scale, the Arabs, and more recently, the Russians have honed it into a fine art.

While easy credit, affordable imported goods from the Far East and a (previously) buoyant real estate market, gave Joe Average in North America an excuse for conspicuous consumption, the tide may have changed. Not only has the recent financial crisis revealed that wanton spending is unsustainable, but the amount of time and effort needed to work to sustain such a lifestyle has led to higher levels of exhaustion, less family time, obesity and other general health issues, as well as greater levels of unhappiness and depression among North Americans.

But if there is a silver lining on this dark cloud, it is an increasing awareness of what people can live without, and during tough economic times, a return to sensible budgeting and spending. Whereas, keeping up with the Jones, and trying to mimic the lives of the rich and famous, may have been the societal norm (or at least the aspiration towards it), it appears that sensible spending, budgeting and frugality is making a comeback. In short, it may be the new black.
Not only have sales of McMansions, gas-guzzling SUVs and other status-bestowing luxury goods stalled, but even the use of the lowly-regarded coupon is rising. People are starting to get the message, as debt is crushing households, and any cost saving measure is utilized. Manufacturers of economy cars such as the Honda Fit cannot meet demand and smaller residences are becoming the norm. The use of the money-saving coupon, once derided as the tool of the poor and cheap, is growing by leaps and bounds. No more are people who make use of coupons looked down upon. Coupon use typically fluctuates with economic times, and right now, demand, interest and use of coupons is surging. In the US, over 300 billion coupons are offered every year.
If you read "The Millionaire Next Door" by Thomas Stanley and William Danko, you will learn that even millionaire households have long known the value of the use of coupons and frugality and budgeting, are important factors in those millionaires achieving the wealth that they have.

Interestingly enough, the vision of the general public of what a typical millionaire looks like, is very different from the reality. Individuals who live ostentatiously, are quite likely to be heavily in debt, lease their vehicles, live beyond their means and have very little net worth. Superficially, their lifestyle looks terrific, but in substantive terms, their facade is paper-thin.
To me, being frugal means living below your means. So start using coupons, turn it into a habit and use frugality to start on the path to becoming wealthy.