The CNN report comes at a time when new Commerce Department data was released indicating that Americans spent 0.2% more in February. This may seem like a sign that the economy is improving. It is, but personal income decreased by 0.1 % and income decreased by 0.2%. Real disposable income decreased by 0.4%. The news does not make you want to run right out and start spending. Spender’s remorse may not be a fallacy, but having less money to spend is very real.

Finally, there is a study that supports being frugal. Saving too much can make people resent saving. Moderation is key. Though that sounds great in theory, saving money, just like spending can be addictive. Compare this to a crash diet, dieting becomes a way of life, just as eating unhealthy can be a way of life for some as well. Being in the middle, of the two extremes is harder to manage because you are denying yourself many things all the time. First you are denying overspending and you are denying not spending anything. 

The middle ground would be to include the best of both worlds – saving, but buying what you can afford. Indulging within reason can be liberating because there is no wonder where the money is going to come from – you already have it.