Monday, November 22, 2010

The New Frugality

Conservative, simplistic advice in consumer economics. It is well carried out with plenty of personal experiences. The underlying thesis is that the fall of the economy in the "great recession" has triggered a change in behavior and circumstances. The excessive consumption of the past cannot be continued and today people will be required to live within their means. He thus provides a number of tips for doing that.

The goal, however, is not to sacrifice the quality of life. Instead, "excess" should be siphoned off, while still spending generously (within one's means) on areas that provide value. Debt is generally to be avoided, but is appropriate in some cases. Renting a house is often very appropriate, especially when house values are high relative to rentals. Saving for retirement and other events is good. Credit cards can be good or bad depending on how they are used.

The author presents his "goals" in a fairly open manner, acknowledging that different people function in different ways.

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