FRUGILLIONAIRE

Over the past year, mainstream interest in frugality has surged. People who never before hesitated to whip out their credit cards have been shunning retailers, clipping coupons, and making do with what they have.

Many have been forced into this new lifestyle by job losses, underwater mortgages, and mounting debt. Others have embraced frugality to establish a safety net should the same thing happen to them.

According to the Washington Post, however, the novelty of this new fiscal responsibility is wearing off—and some people are struggling with “frugal fatigue:”

Frugality falling out of fashion?

When the recession slowed business at her public relations firm, the Silver Spring fashionista put herself on a strict spending diet. She avoided online retailers and her favorite Georgetown haunts. She unearthed clothes in her own closet that she had never worn, some with the tags still on.

After about six months, however, her virtue has begun to feel like a heavy cloak she longs to cast off.

“I had not shopped in so long I was going through withdrawal,” said Kwawu, 34. “I thought, ‘I have to get something now. I’ve been good long enough.’ ”

Malls and boutiques are filled with people such as Kwawu these days, shoppers who have cut their spending — some drastically — during the downturn and are now suffering from what some call “frugal fatigue.”

It’s just like being on a crash diet—at first we feel righteous and noble nibbling our celery sticks, but then a sense of deprivation kicks in and that chocolate cake starts to look more enticing than ever.

On the other hand, had we simply adopted a healthier way of eating—allowing for the occasional “treat”—it’s unlikely we’d feel the same temptation to be “bad.”

It’s the same with our finances. When we quit spending cold turkey, all those things we “can’t have” start to look more and more attractive. And if we give in to temptation, there’s a real danger that we’ll overcompensate for our sense of deprivation—and end up with some serious debt.

However, if we take a more balanced approach to our money management—making wise choices, but allowing an occasional indulgence on something that’s important to us—we’re much more likely to stick with the program.

Frugality isn’t about depriving ourselves of ALL consumer goods. Rather, it’s about being more mindful of our money, and making sure that the way we spend it accords with our other goals in life.

Suppose you love to eat out, but have decided to cut your restaurant expenses to save up for a down payment on a house. You’ve determined your priorities—homeownership is more important to you than dining out every week. However, that doesn’t mean you can’t indulge in the *occasional* restaurant meal. Such a “treat” every once in awhile won’t derail your home buying plans; plus, it’ll keep you from feeling deprived and falling off the wagon altogether.

The key, really, is BALANCE. Doing things in moderation is always so much easier than taking extreme measures (and more likely to lead to success). If you’re living frugally, a well-considered expenditure won’t lay waste to your plans—on the contrary, it may very well help keep you on the path to your financial goals.