For most people money is a sensitive subject. While some do their very best not to come across as being tight as a tick, others always settle for the cheapest option without regard to value for money. Of course, those who are frugal lie somewhere in between.
Paying attention to deals with a good value-for-money-ratio is what distinguishes frugal people from cheap people. The worldwide web is a great resource to gain quick access to the best deals today and always stay up-to-date. But how else can you differentiate, whether someone is frugal or cheap?
Characteristics and Behaviors of a Cheap Person
It might seem like frugal and cheap can be used synonymously, but the truth is far from it. Both words describe entirely different mindsets. Terms such as “skinflint,” “tightwad” and “penny pincher” are used to call out someone who is always looking for the best deals online and offline; “best deal” in this case meaning the absolute cheapest possible.
When it comes to characteristics and behaviors, cheap people:
- Hold on tightly to their money and avoid spending it at any cost.
- Always think prices are too high.
- Are never happy with their choices.
- Rarely relax and enjoy life.
- Remain unhappy even when they find the best deals.
- Always focus on not spending their money.
- Are often miserable and moody.
- Rarely go out or spend money on hobbies.
- Often have money issues despite being cheap.
- Tip rarely, if ever.
Characteristics and Behaviors of a Frugal Person
In comparison to cheap people, it is generally true that frugal people:
- Know where and how to find the best deals today and still enjoy their lives.
- Consider the best deals online and offline and make an informed choice based on value-for-money.
- Have their life goals in mind and look for the best way to get there by making smart investment choices.
- Like to spend money if they know it’s worth it.
- Take the opportunity to bargain, but only for the fun of it.
- Find balance between saving and spending.
- Prioritize what they want and put off spending money on things they don’t really want.
- Pay attention not to overspend.
- Let their money work for them instead of hoarding it.
- Won’t hesitate to opt for the best deals today if the quality is as good as the price.
- Don’t judge others on their spending choices.
- Enjoy life to the fullest because they know they have earned it.
- Keep track of expenses and debts without making others uncomfortable.
Why Frugal Is Better than Cheap
The characteristics and behaviors that have been depicted are designed to be thought-provoking. Everyone has their reasons for the choices they make around money and financial investments and while sometimes the decision for the cheapest option might be based on insufficient funds, the general conversation revolves around the underlying mindset. A cheap person’s decisions are grounded in a cash-hoarding mentality while a frugal person decides based on the best deals today that will allow them to reach their long-term goals tomorrow.
Photo Credit: stock photo
I admit it. I’m cheap!
I’ll go for quality every time. One example – I bought a leather belt from a well known retailer Over 5 years ago for $50. Wear it almost every day. May look a bit used, but still does its job, and I expect it to last at least another 5. You don’t always get what you paid for, but you never get more.
It’s ok to be one or the other. I am frugal but I do not deprive myself. You can’t take it with you when the time comes to take the universal dirt nap.