The big spenders are now at a disadvantage, as it will be more difficult and take longer to adjust their lifestyle to the new era of frugality.
On the other hand, the people that have rejected the cultural movement to live it up and take on huge debts are now cashing in their frugal lifestyle. The simple folks that cut coupons, live in a small house and drive an economic car are in the best position to whether the economic storm that is plowing our way. The simple folks that do their own household chores, manage their own money and perhaps plant their own garden – are cashing in there frugal lifestyle.
The over-extended families that have taken the ‘easy money’ handed out so freely by the government over the last decade are in the worst position. They are heavy users of the service industry, which has been growing for decades. That is all going to change in the age of frugality and the service industry is probably in for a large decline as more and more people begin using their own time to take care of their own needs.
The Recession Is Here
Sometime in the near future, the government will be forced to acknowledge that the economy is in a recession – and perhaps an inflationary depression. When that day comes, the government and many Americans will begin to look for ways to cut back on their spending.
The flood of people seeking personal financial counsel or a ‘money saving expert’ will quickly overwhelm the few financial professionals currently working in this capacity. Many of the people who need financial counseling will not be able to get it. They will begin to look for financial counsel in other places, like churches, government agencies, the Internet and even private businesses.
Millions of American’s will suddenly need a Money Saving Expert. The question will become Who Should Provide Financial Education? One of the best ways to turn around the economy is to teach the public to save 10% of their income, budget and stop consumer debt. The America public needs to be told the truth by the president and congress, that we have a declining dollar and a sinking economy with high imports that we can no longer afford.
We need to be honest with the public so that a national campaign can be launched to unite the public around a common cause to turn around the economy. Our economy is a national crisis, as we are losing our status as a superpower. We need every household to participate in an effort to increase our national savings rate, pay down the deficit and reduce spending. It is no longer patriotic to live beyond your means, now it's patriotic to be stingy.