Is It Frugal Or Is It Cheap?

Cheap and frugal: two traits that are often confused. Let’s use me as an example to demonstrate the difference.

Embracing frugality allows you to live a wealthy life without being cheap. I am a frugal person. My mantra throughout adulthood and into retirement has been based on maintaining a budget and living within my means. I save when I can, which allows me to spend on my needs and wants.

Practicing frugality doesn’t always mean sacrificing. I eat out, take vacations, indulge in splurge shopping, and occasionally visit a casino. 🤫 Frugality simply means saving when you can to allow for later spending.  

Like most frugal community members, I’m a discount shopper. And ICYDK (in case you don’t know) almost everything goes on sale at some point. I rarely pay full-price for anything. Notice I said ‘rarely.’ Times do occur when I don’t want to or can’t wait to find a price that fits within my usual acceptability limits. In these situations, I weigh the item’s worth or immediate importance, and unless the price is utterly ridiculous, I’ll most likely pony up. 

So, price is not the only consideration for a frugal spender; whereas cheap is deciding to spend solely on cost.

Frugal spenders possess certain traits. Aside from maintaining a budget, saving, and living within our means, we diligently incorporate the following habits. 

Adopt a minimalist attitude - Evaluate whether making a purchase fits into the ‘just enough’ lifestyle of having what is truly needed or wanted.

Avoid debt – Don’t fall into financing traps that come with unmanageable payment plans and fees that increase financial commitment.

Focus on earning rather than paying interest – Manage finances to gain interest income instead of accumulating fees that result from outstanding debt. 

Protect our credit rating – Maintain a high credit score in order to take advantage of the perks that accompany having good credit. 

Seek quality – Wait to purchase items at a sale price that meets your value and longevity standards, understanding that a cheaply priced item isn’t always the best choice.

Sacrifice willingly – Realize practicing frugality sometimes means forgoing a purchase until a more optimal time. 

Recognize ‘sale’ doesn’t always mean buy – Understand that because something is on sale doesn’t mean you need or have to have it.

Frugal and cheap aren’t always about money. Time and effort are valuable social capital. I’m not stingy (cheap) when sharing my time and energy to help others or participate in activities; however, I practice frugality by allocating these assets carefully and with intention.

BOTTOM LINE: Frugal is not cheap. Practicing frugality affords you the freedom to achieve financial and personal goals with less stress. It’s important to make informed choices about your money and how you choose to live your life. And remember – it’s always easier to carry a light load than a heavy one.