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Thursday, November 11, 2010
Consumers Expect to Stick With Frugal Ways
From the Modesto Bee.
"It remains to be seen if the recession will have the same long-term effects as the Great Depression, which yielded a generation of people who pinched pennies and reused everything from glass jars to nails. But it seems likely, especially in the Northern San Joaquin Valley, where recovery takes longer and unemployment could reach 20 percent this winter.
In general, experts say, recessions end as people start spending money. But with so many people bringing in less money and lines of credit harder to come by, few people have returned to their old financial habits."
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"She pointed to the types of businesses that are succeeding. Thrift and consignment stores are reporting strong sales. Two such shops recently opened along Main Street; two others have expanded into larger spaces."
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"I have a good system," Mulvihill said. "My husband says, 'You're not cheap. You just use financial wizardry.'"
One person in the article mentions that he furnished his house with thrift store buys--this can lower your homeowners insurance, because the replacement value of the contents are cheaper, resulting in a cheaper insurance rate. Also, you have nothing irreplaceable--it can be replaced at the nearest thrift store.
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