Yesterday I posted in regards to the things people do to learn about others and in one part I mentioned that people use dining out as a way to determine if someone is cheap or frugal when it comes to money. Some people have asked what exactly the difference is as when you think about it they both basically imply that the person is always money conscience over every penny.
In general, I personally view someone who is cheap with money as a person who simply makes purchases based on the lowest upfront dollar amount and goes through life believing that saving money in any scenario is more important than the end result. A person who is frugal with money on the other hand looks at things in terms of its value and is more focused on whether or not what they do will impact them positively overall.
An example would be shopping. Let’s pretend we need to buy a phone today where one place close to you sells it for 19.99 and a place further away sells it for 19.95. A cheap person would travel to the farther place to buy it as upfront it is cheaper. A frugal person would factor in how it will take them more time to get to that other place and so really in terms of time and money it is better to get it at the closer store. If you think about it, time equals money as well.
A more open ended example would be say being out on a very hot sunny day to the point where you are very thirsty and need water. A cheap person would say that they don’t need it as they have water at home and so there is no point wasting money. A frugal person would say that it’s going to be awhile until you get home and torturing yourself over a $1 isn’t really worth it as you will benefit more by taking care of yourself now. That example can be a little subjective, but you get the point.
This is just my personal opinion, but most people who are cheap that I have met view money as a materialistic means of happiness and frugal people see money as simply a means to achieving happiness. That is a huge difference in attitude and I personally think having a frugal mentality when it comes to money is a better choice as you have to learn how to value the other aspects in your life and the people around you.
If you meet a person who is cheap too, in my opinion I think a lot of people who are cheap don’t intentionally want to be that way but rather they are either doing it out of fear or obtain a lack of knowledge about something. So, don’t be quick to condemn as maybe all they need is a little guidance.
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