“What I am saying is that we have moved from an era of conspicuous consumption to an era of considered consumption. People at one time wanted to showcase all of the things they are buying and now they are stopping and really thinking about it.”

Kit Yarrow – consumer psychologist and professor at Golden Gate University in San Francisco, California

It is not a crime to like nice things. Even the most frugal of us like nice things, who doesn’t? Mortgaging your future for those nice things is what is the problem.

There is a lot of backlash in articles and stories about the recession; bringing about a collective shunning of luxury goods and services.  Every luxury is not bad. Living above your means and going into debt to finance your fun trashes your budget. There are still people though who have some disposable income. 

Disposable income doesn’t mean that you have money to throw away but that you have some extra money to spend, that doesn’t have to go toward bills or saving or investment. Saving all of your extra money for too long a period can make you bitter, if you have no goal in mind. This does not mean you have to buy things just because others have them or because the money is burning a hole in your pocket.

Saving is great, but conscious and thoughtful consumption makes a purchase special. Rather than buying something just because it is on sale, or just because it is trendy. Thoughtful purchases makes people the true cost of the item. You may have an extra $00 or have saved money by cutting out some services. Yet, if you cannot do certain things yourself – like cut your hair, then that is a service that you can’t live without. This doesn’t mean that you have to have the most expensive hair stylist coif your hair but you can still have someone do it for you, for less, or less frequently.

Thinking about purchases before you make them, regardless of the price reaffirms your commitment to spending money wisely. I enjoy looking at things and have been lured in by the clearance sections at stores too often. Occasionally I find a bargain, other times I just got sucked in by the lure of something cheap. Now, I will buy something that is only needed or really a great deal. 

Frugality rocks but that doesn’t mean that you can’t enjoy some goodies along the way. Some people are frugal by choice or force. Those who are frugal by choice may change how the truly wealthy spend their money. Those who are forced into frugality can share what they have learned with others and are making significant money choices as well.