Peter Goodman at the New York Times wrote a very interesting article today about a shift in consumers’ approach to spending money in lieu of uncertain economic times.

…the freewheeling days of credit and risk may have run their course — at least for a while and perhaps much longer — as a period of involuntary thrift unfolds in many households.

If Correct, Goodman’s predicted “period of involuntary thrift” will present a dramatic change in consumer behavior - one that has seen national savings rates plummet and credit usage soar. What will this mean for people like you? Savings…from the spending side, from the interest expense side, and from the deposit account side. Necessity truly is the mother of invention.

The bottom tool under the “Calculators” tab on the right illustrates how much you can save by systematically saving for an item as opposed to financing it with a high interest credit card. Setting specific savings goals and developing disciplined savings habits not only eliminates outrageous interest expenses, it thwarts impulse purchases (you know, like that new pair of shoes that you just “had to have” and have worn only once).

Systematically saving for a specific purchase also buys you time to research the target item. The more planning that goes behind a purchase, the more money you are going to save - simple as that. Check out reviews at sites like epinions.com, Reader’s Digest, circuitcity.com, or sears.com before you make a purchase and you could avoid blowing money on a sub-standard product…and find the best price available. By in large, you can be a better saver by being a better shopper.

This is not a new concept, and these times are not unique; periods in the 1930’s, late 1970’s and early 1980’s saw similar economic uneasiness. They, too, learned that by becoming better savers, better consumers, and more realistic borrowers, you can overcome recession, depression…and yourself.

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