One might wonder if there is a difference between being frugal and being cheap?
The answer is yes, there really is a difference between the two and typically the two words are used incorrectly.
Frugal people are driven by maximizing total value and prioritizing their spending so that they can have more of the things they really care about or need, including the value of their time.
Cheap people are driven by saving money regardless if they are getting any value for the money or not.
Here’s some of the differences:
Frugal people tend to understand that you get what you pay for in the long run so they are willing to spend more.
Cheap people are only concerned with what it costs right now, never thinking about long term.
A frugal person will save up their money so they can spend a little more on a product of value that will last a long time.
A cheap person will not bother with saving because they know they won’t pay any more then what they think the item is worth.
Frugal people often tend to bargain harder than a cheap person but also understand that any good deal is a plus.
Cheap people more often then not don’t bother to bargain at all, they already have their mind made up on what they will pay, good deal or not.
Frugal people understand that brand names are pretty much all about marketing, yet they also understand the no name or cheap brands wear out quickly and offer little value for their money.
Cheap people never look at the brand names because they have no intention of buying them in the first place, they think buying the no name product several times a year saves them money, when in the long run it usually costs more.
Frugal people never feel like they are being cheap they feel they are getting the best value for their money and being smart about planning for the future and live accordingly and well within their means.
Cheap people feel like they are being frugal (or as frugal as they can) when they spend less on products that are cheap rather then on a little more expensive and better quality products they need or want, typically live within their means but have a misunderstanding on how to improve their future finances (or feel like they just can’t make it happen).
Frugal people are rarely so deep in debt that it’s almost impossible to get out from under.
Cheap people are typically the ones that have way more debt then they know what to do with, which is why they become cheap.