This is really in response to Monkeymama's great recent post (http://monkeymama.savingadvice.com/2008/03/14/interesting-local-article-today_36624/)--I'm never able to respond on MM's blog!--about how the drastic cutbacks necessary aren't really anything but common sense that most of us already abide by (or are easily able to abide by in times of financial shortfall). But I thought I'd make it into a contest entry as well.

I straddle the fence, perspective-wise, between mainstream America's mindset and the average SA blogger's point of view. I've been watching every penny for about a year. Before that, I felt I was always struggling, never able to get everything I wanted, always in debt, raises and bonuses seemingly disappearing into the ether with nothing to show for them, either materially (possessions or savings) or in lower debt.

I do sympathize with the average American because I remember exactly how I used to feel. "Sure, I'm living beyond my means, but I have no choice! It's not like I live extravagantly; I just don't want to feel poor and miserable." That's how I felt, and I bet that's the gist of what almost anyone (outside this site) would say. I didn't think I was a bad person, or irresponsible; I just didn't know any other way.

I always thought I would gradually earn more and be able to reduce my debt while living better and better. Needless to say I'd started myself in a bad position, and not budgeting "everything" didn't help.

Soo, I sympathize with those who feel like cutting back during the recession will seriously affect their happiness and quality of life. That's what I thought I was in for, just over a year ago.

But now I look back at my old self and snicker. If I could go back in time and talk to her I'd say, "Self, living beyond your means IS extravagant, no matter what level of income or lifestyle you're at. And THAT'S the only thing that's making you feel poor and miserable, you silly thing."

A year later, I'm not cutting everything back, but I'm living consciously, paying for everything with cash or knowing exactly how I'm going to pay for something if I do put it on credit at the time. And I have places I could cut back--I pay $1500 extra on debt per month, allocate several hundred toward saving up for fun stuff, even reward members of my household with cash for exercising. Out of three incomes, one is dedicated to just those budget items that could be eliminated. Some day a good chunk of that will go toward savings, and our future. Right now it's digging us out of the hole we're in, and allowing a little extra fun. But it's good to know we're disciplined enough that we could live on just two incomes if we had to.

So I have to say once you've been through the looking glass for a year, on the other side of the American mindset, everything is opposite. Living beyond my means is the last thing I'll ever resort to again. I feel extravagant because I always have plenty of cash in the bank to cover the bills, and spending money in my wallet that I know is mine free and clear. And far from feeling poor and miserable, I feel strong, and smart, and in control of my future.

Being recently converted into a truly budget-conscious person can teach you a lot about money, about people's perspectives on money during a recession, because you've walked in both sides' shoes. And you know anyone can do what you did, and even learn to love it. Because you were sooo typical, and now you're sooo not.