When home values, investments, lifestyles were flying high, it was the economic "F" word everyone avoided.
"Frugal is no longer the “F” word," says Yahoo! Finance columnist Laura Rowley.
Now, it's a way of life.
"People have turned to frugal ways of behaving and found it's actually not so bad," said Rowley.
Rowley, author of "money and happiness," says one-way people are becoming frugal is by trading down.
“Trading up was very fashionable a few years ago, so from brewed coffee to gourmet coffee, from fast food to casual dining...now it's the opposite,” she says.
“The main reason is people know they can trade down without greatly affecting their lifestyle."
Another way is to use pricing power.
"A lot of retailers will now match a price you bring in from somebody else. Or you can ask them to throw in something else. I'm going to buy the iPod I want the charger that goes on the wall. Established retailers never did that before, but now they are in survival mode," Rowley says.
Rowley says she's also seeing a downshift in social spending -- people changing who they hang out with because they can't keep up with the joneses.
"Maybe they kept up with them in the past using easy credit...they can't do that anymore,” said Rowley. “You see people starting to look for reference groups of the same income level."
Rowley says cost-saving basics like coupons, cheaper cell phone plans, and programmable thermostats are all good ways to start dealing with the "F" word.
Also, do more free things that make you happy, like spending time with friends and family.
"The silver lining is that the economic crisis is gonna help people to face their finances. When you do get control of your money, when you do know where your spending is going, when you do know what you're invested in, you feel more confident, you feel more at peace," she says.
