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  • Being Frugal vs Being Cheap

    Being Frugal.

    Frugal or Cheap

    Do you consider yourself to be frugal or cheap?

    It seems that many frugal folks get the reputation of being cheap, when really, there is a big difference between the two.

    Being frugal does not mean that you never, ever spend money!

    You can be frugal and still go out with your friends. You can be frugal and still buy a new pair of shoes. You can be frugal and still go out for dinner once a week.

    You can still have fun while living a frugal lifestyle. The difference between being cheap and being frugal all comes down to how and where you spend your money.

    Frugality is getting the most bang for your buck. If you can buy a great book for a friend for her birthday and it only costs you $1 at the thrift store, what’s wrong with that? The book is in like-new condition and it’s the exact book your friend has been lusting after for months.

    Is it wrong to buy your friend a gift that only costs you $1? Of course not. This is not being cheap – it’s called good money management.

    Being frugal does not mean spending no money, it means spending your money wisely.

    There are some things you should consider spending a bit more money on:

    • Mattresses
    • Pots & Pans
    • Undergarments
    • Infant Car Seats
    • Barbecue

    Those are a few things off the top of my head, but there are many more. It all depends on your family and your lifestyle.

    Just because something is very inexpensive, doesn’t always mean it’s a great deal and that you should buy it.

    To be frugal and avoid being cheap, always:

    1. Have a set amount of money every month for entertainment – and actually spend it. If you don’t have fun in life, you will burn out rather quickly.
    2. Be sure to buy items that are of good quality. Just because it’s the cheapest, doesn’t mean it’s the one you should buy.
    3. Tip at least 10% when dining out. We always tip 10% for bad service, 15% for okay service and 20% for exceptional service.
    4. Buy or make thoughtful gifts. Don’t buy things just because they are on sale and hope the recipient will like them.

    Being frugal is not a bad thing – as long as you’re doing it “right”.

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    9 Responses to »
    Being Frugal vs Being Cheap

    1. mary says:

      Cheap is when you intentioanlly use other people’s time, money, skills to save yourself money when you have absolutely no intention of reciprocating. Don’t think for one minute that it goes unnoticed. Being cheap is mean-spirited abuse.

    2. Sheryl says:

      I agree with everything except a 10% tip for bad service. I don’t give a tip if the service is bad. But if it’s decent I agree with the 15% and 20% for great service. If the server is bitchy, messes up the orders and doesn’t check on us to see if we got everything or need anything, I don’t see why they would deserve a tip.

      • Athena says:

        if the service is so bad that you can’t leave ANY tip, you should probably be talking to the manager. bad service tip 5%. if you leave no tip you should probably never return because it was that bad. and servers make mistakes or have bad days too.

    3. Crissy says:

      I read Mr. Money Moustache as well….this is where the ‘blog’ came from, almost verbatim. However, I do agree with the principles. I’m introducing my guy to the art of frugality vice him being cheap…he almost always buys stuff cause it’s on sale, not because it is needed, but then, he refuses to buy something we really need because he feels it’s overpriced. He’s learning though.

    4. Rick Bradley says:

      I find that I can save a lot of money by frequenting the quick sale table. Always remember that the best before date is just that, not an expiry date. With fresh meat the margin is small but if you’re flexible in your shopping and meal prep then good buys are available. Most packaged goods have a huge cya factor built into the best before dates so while it would be imprudent to purchase goods much past the date you still ought not to discard items in the pantry that are a bit old. We had a 2 Kg jar of peanut butter which had lurked unnoticed at the back of the pantry for almost 10 years that was just as good as a new jar (we since switched to natural pb).

    5. crafter says:

      really like your comments about gifts.don’t feel so cheap now:)

      I often buy xmas gifts in Feb when they have huge deals online

      I used to make a lot of gifts but started to find I was giving a second store bot gift as well. I have to stop sabbatoging my frugal efforts. I’ve found that looking up similar prices on items on http://www.etsy.com makes me more aware of the value of the handmade gift I’m giving.

    6. Jax says:

      I must be really cheap. No bra, nice underwear, or car seat for me. My mattress is at least 10 years old; I just flip it over every couple of months. I did sell $19.99 for a nice pan for cooking. I don’t go to places that require tip much. If it does I usually round up. 6.54 to 7. or a nice .46 big ones. Bad at gifts too. Gave mother a $13.99(supposely retailed for $99) 8 piece cookware set last x-mas.

    7. Barbara says:

      I like the point you made about spending all your monthly entertainment budget. I think people trying to save money or be frugal think that they can’t go out and have fun because then they would be wasting money. It’s important to do fun things every once in awhile. Like you said, if you don’t you get burned out.

    8. Emilie says:

      I’ve always considered being cheap is trying to scam money off other people. Like if you don’t put in your fair share when the cheque comes, you’re cheap, but if you had a great homecooked inexpensive meal at your home with friends, that’s frugal.

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