Living frugally is a mindset, although sometimes you have no choice. Money doesn't go as far as it use to a few years ago. Think about past generations, how frugal did they have to be? Did our great-grandparents have all the fancy 'conveniences' we have? So, how frugal can you be? Do you really need all the latest electronic gadgets?
I say "NO!" It is time to start being content with less. I found an article at Frugally Sustainable that gives some ideas on how to change your mindset: 10 Ways to Live in Contentment and Have Enough .
I think an easy place to start is by being content with what you have. Then you can go from there, before the world economy forces us all to do so!