Frugal vs Cheap. Which one are you?
Has anyone told you before that you are a frugal type of person or a cheap one? What does it mean, and should you be flattered, hurt, or no response at all?
Many of us are familiar with these two words and their meaning. Often, we even interchanged the use of it. However, there seems to be a fine line between being frugal vs cheap.
Undeniably, both Cheap and Frugal people love saving money, but up to what extent?
Let's talk about frugal vs cheap and find out which one you are. Plus, learn which you should strive better for.
Are you ready?
Let's dive in!
Related reads: 15 Awesome Money Saving Ideas to Use Today.
What does being frugal mean?
According to the almighty Merriam-Webster Dictionary, the Frugal word means:
The definition uses the term economy, so what exactly does it mean? Being frugal means that someone is prudent or not wasteful. Frugal is also economizing or choosing one more economical brand over another. With the word frugal, remember to associate it with the word value.
It may be challenging to understand by mere definition alone, so we will give examples later. But, for now, here are characteristics of a frugal person you should be aware of.
Frugal persons are generally more concerned about the value of their purchases. Of course, they also care for the cost, but they value the quality beforehand. Being frugal means treating time as money.
If you thought that driving for one and a half-hour will save you a few bucks in the same Mcburger size or just because you heard some store has a massive sale, think again. Frugal people would not sacrifice quality and time just to save for a few bucks. When in fact, you can save just the same or more if you look around and seek alternatives within your area.
Not to mention you won't waste oil and gas plus your effort. Are you getting the point of frugality here?
How about being cheap?
The Merriam-Webster Dictionary defines Cheap as:
On the other hand, cheap people are somehow connotative for a negative word. You often hear those words, “Oh, he won't tip. He's so cheap.”
But, wait a minute. Cheap is not just about not giving a proper tip when you eat out or request a service.
Essentially, being cheap may save money in the short term but often costs you in a long time either in quality, decency, longevity, money, or all of the above. That is because, generally, cheap people are more concerned about the price of an item.
They most likely disregard the quality, so long as they get the best price possible, think they got the best deal or best buy for a lower price. Primarily, they shop for cost or price.
Aside from that, cheap people seem unwilling to trade-off to achieve a certain benefit. Think of it this way. Have you met or known someone who isn't willing to change, say, for example, his old crappy car, just because he thinks spending on maintenance, insurance, and buying a brand new one will cost him more?
I mean, what more motivation do you need? Cheap people are even more proud that they think they had to haggle the price or get the best bargain. I mean, nothing wrong with that, but if it has been causing other people or people around you harm or affecting them in some negative way, we've got a problem here, dude. (I'll explain more later!)
Signs you are Frugal vs Cheap.
How to tell whether someone is cheap or frugal? Here are signs that you are frugal vs cheap that you must be aware of.
 Frugal |  Cheap |
1. Ensures that every money spent is worth it or get the most out of every penny. | 1. Cost driven. |
2. Value and Quality driven. | 2. Always all about the cheapest price. |
3. Living below their means and making strategic decisions to save money, not indulging in unnecessary luxury goods and services. | 3. Manipulating situations and exploiting other people to either make or save money guided by personal interest. |
4. Understands that they get what they pay, hence they are willing to spend on things they truly care about. | 4. Looks for opportunity where they could pay less. |
5. Treats time as money, hence willing to pay for convenience. | 5. Their cheapness affects everyone around them. |
6. Value for money. For instance, quality shoes and anything that helps them sleep quality and productively. | 6. Having people spend money on them but not spending a dime on others. |
7. Anything that saves them enough time to make more money than they are spending | 7. Not tipping generously. |
8. Frugal people are more likely to invest money sensibly, as opposed to just saving it. | 8. Buying things which won't last , so in the long run ending up spending more. E.g. Buying a cheap kettle which won't last longer than a year or two as opposed to something that will last 10 years. |
9. Accepts a fair price. | 9. Regifting just so they won’t have to spend money on gifts |
10. In general, frugal people don’t feel the “need” to always have the best and latest gadgets or anything hot and trendy in the market. They are also less likely to keep up witht the Kardashians. | 10. Don't like to spend at all, hides his money, and always going the cheap route. Likes to brag and show off to others that what he got is the best deal or a knock-off, when in fact it's poor quality, easily worn out, and replaceable. |
Frugal vs Cheap? I mean, there's nothing wrong with wanting to be extra cautious with money, always wanting to save or get the best possible price. We're all been there, and we've done that.
What is making a cheap person in a negative light is when it affects other people and those around them. For instance, if you have a child and you bought him a school shoe three years ago.
Yet, you are unwilling to purchase a new one because it's too expensive for you, besides you think the old shoe is just fine. Think about compromising your child's precious feet! What if he's already suffering from callous and scraps?
Or think of it this way. Every year you buy a new shoe. So why not invest in a quality one that can last you a lifetime. Isn't it more costly if you buy a new pair of shoes every year, or every time your feet hurt because you refuse to invest in a good one?
Is frugal an insult? What does it mean to be frugal with money?
No, it's not. In fact, when someone told you that you are frugal, you should be thankful. It's more like a compliment, really. But, the point here is that frugal living is knowing how money works.
To be frugal means you are also a bit cautious, of course, of your money but not to the extent that it's harming people or something. But, again, frugal people value the quality of a thing or an experience purchase instead of cheap who are cost-motivated.
Frugal people think about others, and how their purchases will benefit themselves and the people around them or they care about. As a result, they are willing to invest or spend higher, knowing that they are paying for the best of the best.
Furthermore, to be frugal with money means you maintain a budget, know your priorities straight, save money, invest in good assets, and limit liabilities. So essentially, the frugal dude is the good one here!
How can I be frugal but not cheap?
More often than not, a frugal person can be mistaken for a cheap one. Just because someone is extremely careful with his finances doesn't mean he's cheap. However, excessive cheapness or being called a cheapskate is another story of being unhealthy.
For example, the giving of tips in a restaurant. I've heard many circumstances wherein the frugal ones are willing to tip an appropriate amount while the cheap ones don't. They would even request to pay for the meal equally; have it evenly split so that the ones who ordered the most expensive or fancy one would experience the price difference.
However, let's not be too judgy here though. Think about it. What if that person you called cheap is just being careful with his hard-earned money. We don't know, what if he had some loans and debts to take care of hence, saving money?
What if he's saving that rolled-up toothpaste because it's not another two weeks until his next paycheck? Sometimes, people can be cheap depending on their current requirements and specific situation.
But honey, honestly, being frugal is better. Here's why and how you can be frugal but not cheap.
Don't be penny-wise but pound foolish.
Frugal vs Cheap? Hear me out. This pertains to cutting out on small expenses but overpay on something significant. What you can do here is to reduce costs on big ones like mortgage or transportation. Keep tabs on your budget and see where you can curb some expenses.
Negotiate and don't pay in full.
Take advantage of discount sales and coupon codes but only used them when necessary. Waiting for two hours in line just to max out your coupon codes isn't time-wise.
Buy used items.
There's no harm in buying secondhand or pre-loved items. So long as it's gently used and okay to reuse, you will find yourself a great buy. Plus, it helps in a long-term sustainable use, so it's a win!
Choose low-cost experiences over materialistic endeavors.
Try to come up with worthwhile experiences for your loved ones compared to the stuff that will most likely be overgrown. Life is short. Your call whether to spend lavishly or create memories that will last a lifetime.
Cook at home.
Moreover, you should keep a grocery list, turn into generic brands, and shop at a local grocery store. But, more importantly, cooking at home and packing for lunch can save you huge deals. Besides, food is the most area where people are overspending.
Try to brew your own coffee and be creative with your meals. Aside from that, plan according to what is currently in your inventory pantry and shop around during sales.
Frugal vs Cheap: Is it good to be frugal?
Essentially, yes, it is. A frugal life leads to a healthy and brighter financial future. The reason being is that you are conscious and intentional with what you are spending. As a result, you can give more, achieve your financial goals, and is less stressed with money.
Yes, you strive to save as many bucks, but it doesn't define you as a person. So don't be offended when someone called you out as a frugal person. You have your priorities, it's alright!
But, on the other hand, let's not forget to include the upside of being cheap. So, yes, there are at least a few!
In the battle of frugal vs cheap, being cheap can lead to incremental savings too. Then, you can go on and pay for your dues. You can also almost get the best possible price (but not always)
Plus, you can get creative when there are special events since you don't want to overspend; you can source locally for decors and stuff. You get to have an eye for detail and develop your negotiating skills!
But, the thing that making it abysmal is when you became stingy. Generally, having too much can be dangerous. Plus, when it's making other people around you uncomfortable, take a good look at how your relationship with money works.
Related reads: 8 Positive and Powerful Financial Abundance Affirmations To Manifest
Frugal vs Cheap: Wrapping Up
Most significantly, being frugal is totally worth it. Plus, there are more ways to save money and becoming or living a frugal life.
Too much frugality or being cheap can be dangerous too. Try not to be too much of each. You must only strive to be a balance of both or at least one. Too much frugality can overwhelm you and lead to frugal fatigue. As long as it's not doing you any harm, plus the people around you aren't affected weirdly or negatively, you do you.
Again, spending less alone won't make you rich, nor does skipping on lattes. Furthermore, spending less isn't as motivating if you are only getting 2% in the bank instead of getting rich slowly in investing.
Here's a thought: get rich slowly but surely! Remember, the slow and steady wins the race!
But then again, frugal vs cheap. So which one do you think are you?
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