Economic Factors of 2010 and Health and Wellness Trends

According to the National Marketing Institute (NMI) the latest trends on aging healthy indicate a paradigm shift. Where folks once "traded up", they are now looking to "trade-off". This means a massive shift from luxury items to those that are multi-purpose that can serve a greater good. They suggest, "Products and services which have the dual function of environmental, social and financial responsibility will be most appealing."(NMI)

How does a reduced income affect the average American?

Well if you are one of the 14 million who are still unemployed, (according to the latest Bureau of Labor Statistics June 2010), or if you are one of those that have opted for early retirement, or part-time work, cutting back significantly on expenses, you may also be part of the many American's changing the way they about what they spend money on.

A look back

About a hundred years ago, my great-grandmother and great-grandfather came to this country separately, from different parts of Romania. They both came in through Ellis Island and met where my Grandmother worked for a family restaurant in New York City. She was a great cook but she didn't get paid for her work, though she did get room and board.

When she met my great-grandfather, they became engaged and then married. He was a gymnast who later became a brewer. Great-grandma no longer worked outside of the house unless the kids were in school, and she was filling in for a family member at the restaurant. Again, no money changed hands. She had no social security, and there was no welfare system. She relied on her family and then on her husband to survive.

Great-grandma's role was to take care of the children, the house and her husband. The kids had two sets of school clothes, a winter coat, and a pair of shoes. They had no television or car, and relied on public transportation in Elizabeth, NJ. When the men couldn't find work, they would take turns working on each other's homes doing repairs and renovations. Sometimes he could only get three days pay, but somehow they survived. Grandma cooked from scratch, and it was rare for the children to get new clothes. Hand me downs were a way of life, and you didn't throw anything away.

In the last twenty years

Many families had closets that were bursting at the seams; they had multiple cars, multiple televisions, cell phones, entertainment options ranging from Netflix to X-Box, to Wii. They ate breakfast, lunch and dinner out, and places like Dunkin Donuts and McDonalds were like a second home.

When they were not working, they were busy running the kids here, there and everywhere, or attending this show, or social event in some distance city. Flying 1500 miles away for a mini-vacation became affordable for the average American and many folks opted to live now, rather than save for later. Even those that saved found that if they worked for unethical companies like Enron, or Premium Sales, their 401K pensions were not protected from mishandling or embezzlement. If they invested in the stock market, it was like rolling the die; it was all just a gamble with little oversight or remuneration when things failed.

Today

Whether it is fear of Armageddon, financial investment oversight or ethical concerns, losing a job or wanting to move towards greener living, many Americans are recalibrating what is important to them at this point in their life.

According to NMI, "expect to see trends changing from the direction of "perceived value" to "real value", and from "consumption and possession", to "sustainability and purpose". (NMI)

In my house, we have decided to live more with less money since I lost my job last September. No more dry-cleaning, no more purposeless long-drives, no more eating out at the local fast food places and no more tipping.

We've cut out buying soda or baked goods, and instead if we want something sweet to eat, we bake it. I'm making home-made breads and stews that are delicious and better for us. Where in the past I bought whatever I wanted, I am now thinking, "Do I need this, or can I get by with what I have?" If I need it, and can't afford it, I wonder where can I borrow what I need, or is there a place where I can get a used one? This paradigm shift of thinking sustainability and purpose has already taken hold here.

Perhaps this paradigm has taken hold in your home, your business and your community, too? Are you cutting back on spending, and finding you can live on a lot less? If so, what do you think about it? Is it time for Americans to live more conservatively focusing on value rather than convenience?

Sources:

The Latest Consumer Trends in Healthy Aging - 2010

Personal experiences