Many people confuse the difference between being frugal and being cheap, including people that are in the business of being frugal. What's the difference?
Being frugal means that you are making smart spending choices or getting the most for your dollar. On the other-hand, being cheap or a miser by definition means to be a stingy hoarder of money and possessions. Clearly these reference two very different behaviour types when it comes to spending and saving money!
Let's look at examples of being frugal opposed to being cheap or a cheapskate:
Frugal: Concerned about value
Cheap: Concerned about cost
Frugal: Thinks about the long term
Cheap: Thinks about the short term
Frugal: Saving packets of ketchup left over from takeout to use later rather than dispose
Cheap: Stopping into a restaurant to pickup ketchup packets so they don't have to pay for it
Frugal: Will order according to budget at a restaurant, so they afford a tip
Cheap: Refusing to tip at a restaurant or under-tipping so they can get whatever they want
Frugal: Help family and friends with their knowledge of saving, budgeting, coupons, etc
Cheap: Often keep a running tally with friends, family and co-workers
Frugal: Generally, more generous in nature
Cheap: Generally, more selfish in nature
Living a frugal lifestyle is all about the choices that you make. Making use of low cost and free resources around your city or town will save you a bundle and help you achieve your goals for financial freedom. Visit the FDR Frugal Living Forum for ideas on making subtle lifestyle changes and how to live more frugally.
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