Has the crisis changed you?

Frugality and safety are in; bling and plastic are out. The economic meltdown has sparked a major shift in our financial values. And one that's likely to last.

A new set of values is emerging from the ashes of 600,000 layoffs a month, a lost decade in stocks, and the worst housing crash ever. These values may ring familiar to anyone who lived through the Great Depression. But for most of us it amounts to a large-scale makeover of the way we think about money and life.

We're not just cutting our bills, we're rejecting materialism. We're placing safety and intrinsic rewards like relationships and personal growth ahead of profit. We're embracing family and community and asking how we can help others, not just ourselves.

And why our new values will last?

Some argue that when the economy recovers, our new embrace of thrift, nesting, and altruism will end along with our fears of Armageddon. Certainly, we will borrow and spend again. But it won't be the same as in the pre-crisis era.

Psychologists note that trauma often leads to a shift in behavior - the worse the trauma, the more lasting the change. For example, a near-death experience typically leads people to permanently shift their focus from material success to intrinsic rewards like good relationships and personal growth. You don't see that after, say, a root canal.

No doubt some folks will relapse into their old bad habits once the economy gets rolling again. But you can keep your baser financial instincts in check by reminding yourself of how painful it was when you were maxed out on your credit cards or lost your job with no cash cushion.

Above all, commit yourself to living within your means.

That's a haute habit by itself ;)

Source: CNN