My fellow frugalistas, our time has finally come! It may have taken a pandemic to show the world that our frugality lifestyle is the way to go! But here it is. The consensus is in: frugality reigns divine. It has now been proven to be an acceptable, permanent, smart, social lifestyle. Can you imagine a society that is living within its means?
Can you imagine a world where everyone has a savings account to at least cover themselves for three months? A world where DIY is king? Car repairs, home repairs, self hair cuts, bread baking, learning to cook for oneself and the family, stockpiling, veggie and fruit gardening, sewing machines and bicycles rule the days? No expensive vacations. No cruises or frivolous trips to DisneyLand. Can you imagine a world where RVing is the mode of vacays?
Can you imagine a world where people have learned to live on less, live in smaller houses and still retain their happiness? Their social mode is the appreciation of all things natural the state and Federal parks have to offer (most times for free) all around America? They appreciate nature, the great outdoors, a natural walk, a festive hike, a free concert, and the plethora of opportunities awaiting them at their local library? Can you imagine any of that? Well, I hope you can because this mode of frugal living is reigning supreme right now in the middle of this pandemic.
David Rosenberg, candid influential economist, calls it the ‘Homebody Economy‘. Life has seriously changed for all of us. Based on Rosenberg’s experience, most vaccines weren’t ready for mass injection sometimes for up to four years. The pandemic has brought about a fundamental shift in our economy. Until there is a Covid-19 vaccine, the frugal lifestyle should be made permanent. Future investing will focus and concentrate on anything and everything connected to home-style living and technology.
Despite the prior three years of a raving economy, many people were caught off guard without any savings when the pandemic hit. Waiting on long food lines while idling in their debt-laden SUVs wasn’t envisioned on their time line horizon. Now? People are forgoing many luxury items, getting down to basics and are saving their money instead. Saving rates are up 33%! Forty million people have lost their jobs and there’s a very good chance ten million of these people will never find work as they had before, again. No one is going out to eat anymore. People have learned to cook and bake for themselves and their families. People are buying bread machines and brewing their own coffee. And they like it! No one is hoping on a plane to travel the world or take a vacation. RVing has finally come in to be a respected vacation mode. Bicycles have out sold cars for the first time ever!
To hear Part Two of David Rosenberg’s interview on Wealth Track, I’ve posted it down below. I’ve also posted Part One but I think listening to the second part first is more appropriate in finally understanding what we all have been going through. Rosenberg focuses on finding a solution and navigating a new lifestyle course. He praises the accomplishments and satisfaction a frugal lifestyle can bring to any of us. He offers sound advice on future investment strategies. Businesses, as we knew them, are going to change.
Let’s hope we all make frugal living a permanent choice as we go forward into this brave new world. Who would have thought being a homebody would rule the world?