There’s a fine line between being frugal and being cheap.
Frugal people understand that paying more doesn’t necessarily mean better value. People who are cheap wouldn’t pay more regardless of the value. Those whose all of his or her belongings were purchased at garage sales, are probably cheap. Here’s how to save money, but avoid being labeled cheap.
Frugal People Put People Above Savings
Have you ever gone out with someone who uses coupons to save on groceries? That’s frugal and most people wouldn’t see that as cheap. Frugal people love to save a buck, but they won’t take money away from others to do it. They won’t go out with you and conveniently expect you to pay for something just because coincidentally you’re buying something as well.
Cheap People May Not Even Spend On Necessities
Have you ever met someone who won’t go to the doctor because it costs too much? How about people who skip meals just to save a few extra bucks? Cheap people may not even pay for the basics of life where frugal people look to get the best price they can.
Frugal People Are Willing To Spend for Higher Purposes
Frugal people love to save money but they don’t mind spending on others where there’s a higher purpose or meaning to it. They don’t mind giving to charity or the needy.
Cheap people may have a different mindset. They see their money as theirs and they may hold it for the rest of their life. Their children may speak of them as somebody who would rarely gave a gift or helped when help was needed. This may lead to a strained relationship with that parent. Money appears to mean more than the relationship with others.
People who are frugal know when to pay up
Cheap people only look at price. They believe that the only way to achieve value is to pay less but they fail to take into account other factors. Frugal people know that, sometimes, it’s best to pay up. A quality mattress may cost more, but the added support and ergonomics may help somebody with back pain. Paying the extra money for a pair good jeans from a branded store may result in longer life and fewer signs of wear and tear.
Cheap people may not be as skilled at managing their money as frugal people are. Let’s assume that a cheap person and a frugal person head into an appliance store to purchase a dryer. The cheap person would look for the lowest priced model; the frugal person would evaluate the energy efficiency and compare gas versus electric. He or she may research the model and read customer reviews. Before buying, frugal shoppers will look for rebates and sales at other stores. The better use of the money may be a higher-priced model, but cheap people may not see a need to research when the lowest price, basic model is in front of them.
The Bottom Line
Just because something is less expensive in price doesn’t necessarily make it cheaper. At the end of the day; it is about the value that we get out of it. In the pursuit of financial freedom, we do not need to be cheap in order to save that few extra bucks. Sometimes, it’s about our personality that attracts wealth and health into our lives. Let’s not forget that financial freedom is not all about skimping that few extra bucks alone. It can be about the law of attraction as well. We need to live in such a way that doesn’t hinder good and wealthy people from wanting to spend time with us. For after all, as the saying goes; we are the average of the wealth of five people whom we spend the most time with. Hence, let’s be frugal but not cheap and spend where it’s necessary.