I was reading a post recently debating about the differences of being cheap and frugal and it does strikes a resembility between the two. (Let’s skip “spendthrift” for a moment because it is a huge gap that we all can easily identify).
Assuming you are buying over a pair of shoes which cost one at $100 and another at $40. Being “cheap” means that you will definitely choose the one with the lower cost. But what about being frugal? To me, the differences of being cheap and frugal are multiples, but are pretty simple at times. Just think about it like this. Frugal people are willing to spend money on quality products at a reasonable price. They are smart people because they know that the products they are buying will last them for at least some time, which minimizes the cost over the long run. Cheap people, on the other hand, are people who will go and find the cheapest item on the price tag. They have a mindset to buy products cheap and usually these people are the ones that buys the same product over and over again…simply because the products are “cheap”.
I used to be a “spendthrift” when I first started working 4 years ago to being a “cheap” over the last few years to being “frugal” now. I used to own a branded watch, a pair of branded shoes and a couple of branded clothes when I started working. Whenever my salary was paid at the end of each month, I would go and spend it on items which I do not really need. Luckily for me, it lasted for just a year and from then since, I began to realize and transform dramatically to being “cheap”. Being “cheap”, emotions easily run through the veins everytime you had to make a decision about purchasing something. It is measured by the amount of pain threshold you experience when taking your money out of your own pockets. Again luckily for me, it lasted for only a few months before I finally realise the importance of being “frugal”.
I am striking hard to work the difference between being cheap and frugal. I have a target to save a certain amount of money every month but I also know the importance to live my life in a healthy and happy manner.