(Dan Page / For The Times )
Ask Juli Thurston how things have changed from her spendthrift past and she's likely to point to a thick silver ring that she bought from Tiffany's for $175.
She recently put it up for sale on EBay. In today's economy, something less flashy will do just fine, thank you.
In fact, the only real accessorizing Thurston is doing these days is tightening her belt. After relocating to Florida last year to be close to her grown daughters, the former Los Angeles resident hasn't found steady work.
So what is is Thurston buying? Mainly groceries, which she shops for carefully, using coupons and food stamps. She'll be making many of her Christmas gifts this year. And she keeps up with friends on Facebook, instead of meeting them for drinks or dinner.
"I used to shop at Nordstrom and would go out to eat at least once or twice a week with friends," said Thurston, 50.
"I compare what I'm doing now to what my grandparents said they did during the Great Depression. I have cut back on everything, even the Internet and utilities."
She's not alone. Hit hard by job losses, strapped with debt or just plain weary of shopping for shopping's sake, millions of Americans such as Thurston are changing their free-spending ways.
The brutal economic downturn has battered stock portfolios and home values and made easy credit tough to come by. Even Wall Street tycoons are consuming less conspicuously.
In short: Frugal is back in fashion.
"In a normal recession, people pare back their spending somewhat," said Craig Thomas, a Pennsylvania-based economist and author of “The Econosphere.” "But this is an honest-to-goodness slam on the brakes. Households have cut way back on their consumption."
Signs of the trend
For economists, the shift is chronicled through reams of data that track indicators such as consumer debt and same-store sales. The national savings rate, for example, which lingered around 1% in 2008, has soared to 4.4%. Sales of "apparel and notions" have fallen 13.7% since January. Consumers are even spending less at the grocery store, according to the U.S. Census Bureau.
All the data tell the same story. People who spent every dime of their disposable income two years ago are now saving and paying down billions in debt. Like Thurston, they've shifted from shopping at luxury stores to buying from discounters. They're scrimping with more vigor and tenacity than economists have seen in decades.
"You even see a decline in sales of essentials," said Gary Schlossberg, senior economist with Wells Capital Management in San Francisco. "It's not that people are eating less. They're buying less expensive items -- private label rather than brand name. The stores are restocking their shelves to make more room for the cheap stuff."
But there's no need to turn to numbers to find signs of the trend. Legions of reformed overspenders like Sandra Hanna, 28, will tell you that cutting back is chic.
"Solvent is sexy," said the Denver author and talk show hostess. "Now when my friends get together, we talk about money, some sweet deal that we've found or what we're investing in. It's like we used to talk about boys. Everybody's eyes light up."
Hanna is part of a group of five women known as the Smart Cookies, whose conversion into penny pinchers has netted the team two book deals as well as a talk show on the W network.
Their transformation started one night when one of the five confessed that she had maxed out her credit cards and was $20,000 in the hole. Hanna had a confession of her own: She'd saved $8,000 by living with her parents after college. But in a mere two months, she had spent every dime of that and had racked up an additional $2,000 in debt.
"I worked with these women who had these fabulous wardrobes and stylish apartments," Hanna said. "I look back at it and realize that I just thought that's what you do."
They formed their own spenders' support group, urging one another to stay out of the malls and stick to their goals. In two years, the group managed to pay off $50,000 in consumer debt.
If there's a silver lining to today's recession, Hanna said, it's that it caused a lot of people to hit rock bottom and realize the lives they were living weren't sustainable. Some people say they also came to the realization that spending might provide a short-term lift, but it was like a sugar high. It didn't bring any lasting satisfaction.
That's certainly the case for Susan Kessler, a Los Angeles resident who is best known by her blog moniker The Frugal Diva.
A graphic designer, Kessler said that when work was plentiful she shopped frequently and spent carelessly on things such as dinners at overpriced restaurants. But when the economy stalled, she shifted gears. Kessler now dispenses advice on her blog about free activities and how to "work the system" to find nice things for less money.