There was a good article a while back from bankrate.com called Waste not, spend not or spend a lot that has some good thought- provoking points. I will highlight a few, but read the whole article for more detail.

‘œHas ours become a throwaway society? Maybe we should be conserving our resources. On the other hand, a big part of the U.S. economy is driven by consumer spending. Every new cell phone, plasma TV, car or upgraded computer means jobs for somebody … somewhere.’

So the money we put back into the businesses around us help to fuel the economy that we have become accustomed to. Although I do wonder if some businesses are just a bit top heavy in salaries, etc. It seems we could have an even better business model. Then again, I haven’t taken a business or economics class.

‘œA big problem is the easy access to credit and credit cards. With the previous generation, getting credit was difficult. Today it’s a matter of filling out a credit card form or going on the Internet. People are in an unimaginable amount of debt. And not just low-income people but wealthy people, too. All along the spectrum. And I think it’s the easy access to credit that’s the driver. Before you didn’t have that.’

It was in the fifties that the credit card was started, Diners club and American Express, right in the middle of the ‘˜American ‘prosperity’ that brought about suburbs, new cars and the emerging ‘˜American Dream‘. Now compound that with today’s lack of financial schooling as kids grow, either they teach themselves through trial and error or their parents are the role-models.

‘œI think there’s a real problem with the misconception that having the power of spending equals your value. There’s almost an equation that having money plus spending it equals power. What people can buy also really impacts their confidence.’

Maybe this is why it is called ‘˜consumer confidence‘ and such a big deal to economists, businesses and politicians? What would happen if we started buying only what was within our budget, reduced our debt and started saving a little? I think the economic bubble would fizz out a little, but still hold its shape. We may see hard times as a consequence of doing some good, but then we and the economy would recover.

‘œAt one time, needs — versus wants — were relatively simple: shelter, food and water. As more and more goods were produced, “needs” became more complicated and included things like telephones, hot and cold running water, TVs and today, cell phones, iPods, high-speed Internet and two cars.’

‘œOf course, maybe our ‘œneeds’ haven’t changed. Maybe manufacturers and their advertising agencies have convinced us — quite successfully — that we need these products.’

I do think our needs have changed, but it depends on what ‘˜economic plane’ you live on. A business man who lives in the Appalachians may have different needs than the business man in the city. Just their means of travel and communication may be different, thus requiring different needs.

It is true, our world has become a more complex place with many differing impacts on our lives. But, I still believe that in all situations, you can find the simplest way to live in comfort with the least amount of ‘˜wants’!

———-
Dawn C. is site owner of Frugalforlife.com and is residing in Colorado with her spouse, Teri, of 11 years. Dawn can be reached at Frugalforlife@gmail.com