Saving money is an admirable goal, but like anything else in life, it can be taken to the extreme. The truth is, there’s a BIG difference between being frugal and being cheap. Frugality is a virtue; being cheap is not.
People who are frugal understand the value of a dollar and make informed and thoughtful decisions. People who are cheap try to spend as little money as possible. Period. While frugal people buy value, cheap people shop price.
Here are nine ways that frugal people distinguish themselves from cheapskates.
Living “On the Cheap”
Cheap people sacrifice quality for price. Frugal people are always on the hunt for value but are willing to pay up when they find it. Cheap people only care about price.
Cheap people can be selfish. Frugal people are thrifty with themselves but generous to others. Cheap people have been known to order an expensive meal and then shortchange their friends when the bill is divided. They’ve also been known to dine out at an expensive restaurant and then stiff the waiter to save money.
Cheap people bend the rules. Frugal people rarely pass up a good deal. Cheap people, on the other hand, go to extremes to save money –– even if it’s shady. For example, cheap people have been known to lie about their age to receive a discount, to borrow something with no intention of returning it, or to wear clothes and then return them as new.
Cheap people hoard their money. Frugal people think twice before buying something new. Cheap people try to run something into the ground, and then some, before opening their wallet.
Cheap people are penny-wise and pound-foolish. Frugal people measure the true cost of a purchase. (This includes the value of time as well as the maintenance and repair costs over the life of the product.) Cheap people can’t see the forest for the trees. In fact, they’d consider traveling fifteen miles to save a few pennies on gasoline.
Cheap people are obsessed with saving money. Frugal people try to be economical. Cheap people go to any length to save a few pennies. For example, cheap people may gain more pleasure from saving money than from enjoying a night out with friends. You’ll also find cheapskates bringing ketchup home from a fast-food restaurant or serving food that’s long past its expiration date.
Cheap people skimp on important necessities. Frugal people spend money wisely on things they consider a priority. Cheap folks put off a doctor/dentist visit, even when they feel miserable.
Cheap people pressure others for discounts. Frugal people understand that everyone has the right to earn a living. Cheap people are never embarrassed to haggle over price.
Cheap people buy things because they’re cheap. Frugal people buy things they need. Cheap people buy something simply because it’s on sale –– regardless of whether they want or need it.
Cheap or Frugal: You Get What You Pay For
Money is a funny thing. Some people view it as a measure of their self-worth while others view money as a necessary evil. For some people, money is a blessing while for others, it’s a curse. The key is to keep a healthy view of money. Consider the following:
Keep money in perspective. Some folks spend so much time worrying about money that parting with it diminishes the joy of making any purchase or appreciating the moment.
Avoid viewing shopping as a sport. Don’t treat shopping as a competition where winning –– getting an amazing deal –– gives you more pleasure than owning the merchandise.
Be conscious of your spending habits. Focus the bulk of your purchases on what you need rather than on what you want.
Spend money on priorities. Money is worth something only if you spend it. Therefore, spend it on things that are most important to you.
Make sure your decisions add up. Think big picture. If you’re moving heaven and earth to save a few pennies a year, but you’re making yourself a nervous wreck, get a life.
Saving can be costly. Cheapskates can damage their relationships with others by their behavior. Determine the impact that your decisions have on those around you.
Manage your money. Earning money is only a start. Grow your money by saving/investing it properly, so that you make money while you sleep. Remember, you can’t cut your way to wealth.
Don’t spend what you don’t have. As Will Rogers said, “Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like.”
Money should be a means to support yourself and your family. It should never become the cornerstone of your life or define you as a person. Unfortunately, some people let money consume them and take on a role larger than life. That’s neither sensible nor healthy. Frugality is smart. It compels you to live within your means, make informed and thoughtful decisions, appreciate all the things that money can’t buy, and best of all — frugality buys you a good night’s sleep. As the saying goes, “If you want to be richer, make more money or need less.”
Are You Cheap or Frugal?
Additional Reading:
16 Priceless Strategies for Being Frugal
8 Reasons Why Money’s Not Worth What You Think
There’s More to Life than Money
50 Things Money Can’t Buy
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interesting article about frugal or cheap. Some of the people think about frugal people that they are cheap.
Right you are, Jane 🙂
Best,
Frank
Dear G-d this describes my maternal grandparents and an ex-boyfriend perfectly! They never learned the difference between frugal and cheap and made others miserable, a key takeaway from this article.
Grandparents kept their house at 60 degrees and handed out to visitors obviously never dry-cleaned in 40 years moth-eaten scratchy sweaters that smelled like mold and cabbage (they were Polish so that explains the cabbage smell), bought off-brand Jello (actual Jello was too expensive, seriously?), Nana hoarded ketchup packets, jelly packets and would embarrass herself and others demanding more from the confused server to shove into her purse, then stiff on the tip or not leave one at all, even after the $3.99 seniors’ special at the cheap diner. Drive half hour away just to get gas that was 1 cent less per gallon. Then complain that us grandkids liked visiting our other grandparents more. Um yeah, those grandparents had Oreos instead of those horrible Hydrox substitutes not Jello, and when they did have Jello it was actual Jello! They welcomed people and promised them happiness instead of making them uncomfortable and unpleasant!
The boyfriend was worse and showed me that cheapness is, at its heart, cruelty.
we moved in together and didn’t combine our finances, so we took turns paying for fluctuating expenses (split the obvious, recurring expenses like rent, phone, etc exactly in half) and while I rounded my expenditures up or down to the nearest $, HE KEPT HIS TO THE PENNY AND ACCUSED ME OF ALWAYS ROUNDING MY EXPENSES DOWN, THUS CHEATING HIM OUT OF A DOLLAR!!! What the HECK??!! We took an ill-fated trip to Mexico and while I had already vomited out the taxi window twice on the way to the next city, he forced me to walk up and down Alpine-style hills in the blazing sun carrying my own suitcase (you packed it, you carry it he told me) for more than 2 hours searching and rejecting multiple hotels because they weren’t $2/night like the guidebook said could be had. I told him I was getting extremely dizzy and couldn’t even yell at him which seemed to convince him, extremely grudgingly, to spend $4 on a filthy room in which I took a sponge bath because the shower curtain had so much mold on it it could have stood up on its own. He complained for the rest of our time together that because of me, we never did find the $2/night rooms like the guidebook promised. After that he moved cross country and I had an industry job that paid 1.6 times more than his academic one did, so I had to fly to see him 2x as often because otherwise he’d be spending the same amount of money to see me and it wasn’t fair because I earned more. When I pointed out, wait, I only make 1.6 times as much as you, that’s not fair, you’re rounding down, I thought we weren’t supposed to do that, he had the nerve to tell me I was “petty”.
I finally walked over that one, realizing cheapness is akin to cruelty. And one of the key takeaways from the Mexico trip, besides the near-heatstroke from trying to search for that stupid $2 hotel room? My cringing while he completely beat down this poor street vendor haggling over a blanket, getting it for much less than the man wanted ( a oh-so-massive $5 instead of $10). I remember the look on the man’s face as he finally agreed, a mixture of not anger but sadness and disappointment. At that moment, I could tell he lost money on the sale but he was a poor person who needed to get *something*. And my boyfriend had nothing but a big grin. I felt sorry for the man and tried to give him another 1000 pesos but my boyfriend pulled me along, asking me if I was crazy and actually said, “then he shouldn’t be selling blankets if he doesn’t want to give them away” when I told him that I think he just screwed a poor person out of money he truly needed.
Hi Erica
Thank you for sharing your stories. They help to bring my post to life.
I’m sure your grandparents were a product of the great depression. During that time people were forced to accept a frugal lifestyle. It caused incredible strain on families and the memories shaped them for life. That said, others didn’t live through that trying time. As such, their money habits are a choice. I wrote this post to point out the difference between being cheap and frugal.
The way that I see it, money should never be the cornerstone of your life or define you as a person.
Thanks for taking the time to write.
Best,
Frank