Individuals living cheap check only the price. They assume that less money is the only way to get profit, but they don’t take other factors into account. Frugal individuals know it’s safer, occasionally, to pay up.
While a premium mattress can cost more, the added support and ergonomics can benefit those with back pain. The extra money paid at a premium shop for a pair of timeless jeans will lead to inner happiness.
Individuals living cheap can not be as competent as frugal people in managing their income. Suppose a low-cost individual and a poor person goes to an apparatus store to buy a dryer. The person looking for cheap stuff searches for the basic, cheapest model, whereas the frugal tests energy efficiency and compares gas to electricity.
The frugal people study the model and read feedback of customers. When purchasing, thrifty shoppers will look to other retailers for rebates and discounts. A higher-priced model can reflect better value, but when the lowest price and basic model are in front of them, individuals living cheap may not see a need for the study.
Individuals Living Cheap Believe It’s All in the Price
They always worry about the cost. They can question why burgers are Rs 20 if going to a restaurant. They will complain about the price of the ticket if you take them along to a theatre for watching a play.
Frugal individuals may have the same psyche, but they realise it’s cheap to express their concerns.
Frugal Individuals Put People above Savings
If you’ve ever gone with anyone who saves a dinner using coupons? That’s frugal. Most people don’t think it’s cheap. What about the person who uses the tokens then offers a sum after coupon rather than the original price? Frugal people enjoy saving money, but to do it they won’t take away the money of others.
Individuals Living Cheap Don’t Buy Needs
Have you ever met anyone who doesn’t go to the clinic as the cost to go to the doctor is too high? What about parents who don’t want to support their children with the cost of college? Individuals living cheap might not even want to pay for the basics of life, while frugal people try the best price and don’t compromise on their needs. They might avoid the wants but not the needs.
Strong Intent is seen by the Frugal
People like saving money, but that doesn’t mean they’re not generous about money. Frugals also believe in shelling for noble causes. However, they investigate charities carefully to identify organisations/people who actually need and do the right job. They can forget organised charity and give a real need for their family and friends.
Individuals living cheap may have another way of thinking. Emptying the pocket is not their cup of tea. The kids may talk about them as someone who seldom gives a gift or help if help is required. It can lead to an awkward parent relationship but they don’t bother. The money is a priority than relationships.
- Frugal individuals want to save money but won’t do it at others’ expense.
- The frugality is to analyse the larger picture and to be careful to take advantage of the simple economies.
- Cheapness focuses on the lowest price; frugality focuses on the lowest price with decent value for money.
- Individuals living cheap, regardless of cost, are driven by saving money; frugal are motivated by maximising total value, including their time’s worth.
- To be cheap is to spend less; to be frugal is a priority so that you get more of what you care.
There’s always a striking balance between being cheap and frugal. People will tell you when you’re cheap, particularly friends and family. It is indeed lovely to exchange meals and wedding presents with friends and to support those in need. Neither of these things should ever place you in debt or cause you financial distress. It’s a fine line and a juggling act that makes you smart about your finances.
One can’t objectively separate the cheap from the frugal. We may love economic people, or we don’t like them, but maybe the best thing is to consider the moot point. If something can add value to your life, it’s fine to spend on it. That’s what frugality aims for, value for money.