If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
A friend of mine used to brag all the time about how little he spent on everything. In fact, it was a point of honor that he spent so little money on things. Mind you, he was talking to me who rarely buys things at all. But I was always happy to hear where he got things, the prices he got them for, and why he got them.
There was only one problem. He was constantly buying new things because his old things broke so often. He’d buy cheap toasters that would break in less than a year. He’s buy cheap frying pans that started flaking in a few months. And he bought clothes that were constantly getting ruined.
The heart of the problem was that my friend was not frugal. He was cheap. And being cheap cost him A LOT of money over the years.
What’s the Difference Between Being Frugal and Being Cheap?
I have been accused on more than one occasion of being cheap. I’ve gotten this reputation not by what I have bought but what I haven’t bought. To most people, I don’t buy things fast enough. When new things come out, I don’t rush to buy them.
I am not “proactive” in this regard. I don’t buy a car because I am tired of my old one. I buy a new car when the situation calls for it—not before.
But what exactly do I buy? My lack of possessions might have other people calling me cheap but when it comes to the things I buy, believe it or not, price is NOT my number-one concern. It’s dead last.
I only needed to get burned a couple of times by “Wal-Mart” brands to know that the cheapest thing is cheap for a reason. When I look at products I want to buy, I consider the following:
l Durability: will this thing last me for years or months. One way to check this is to read online reviews but another way is to go with brands that are known for quality. For example, for electronics, I typically buy Sony products. And the Sony products I had over the years lasted me until the product itself was obsolete (as when I traded in my cassette walkman for an iPod).
l Specs: I look for products that have what I want. Typically, I avoid the higher-priced items with added bells and whistles that I could care less about. How many times has a salesperson upsold you to a more expensive gadget that did a million different things but you never used any of those bells and whistles?
l Warranty: How long will the manufacturer back up their product. If a product is an el-cheapo with a 3-6 month warranty, then I don’t even bother. But if a company is willing to put some teeth in its warranty, I will consider it. Think about how years ago people would not buy Hyundais because they were considered cheap, but once they introduced their 10-year warranty, sales jumped. Companies that stand behind their products are more likely to build better and longer-lasting products.
l Price: Yes, I do look at price. But it is the last thing I consider. Usually I spend more on better products. My Sony camcorder was about $75 more than a comparable competitor’s item. But I do pay for quality, and I have had no problems with my camcorder. One exception to this is with items I need but rarely use. For example, I will buy a cheap wine bottle opener because I hardly ever open up any wine. But I do use it about once every 6 months or so. Though my frugal nature had me buy a corkscrew with a bottle opener on the other end. Now, I use THAT a lot.
So, there you have it. Being cheap is ONLY considering price. But being cheap can cost you a lot of money over the years. Being frugal is getting the most value for your money while minimizing the things you buy.
It might seem obvious. But you’d be surprised at how many people confuse the two.
Popularity: 36% [?]
Email This Post
Topics: Financial Freedom, Frugal Living |
Rate This Post:
(No Ratings Yet)
Loading ...Related Posts
12 Responses to “The Difference Between Being Frugal and Being Cheap”
Comments
« Two-Year-Old Reveals How to Get What You Want From Life | Home | The Four-Letter Word That Can Get You Almost Anything »
August 8th, 2007 at 7:38 pm
I greatly appreciate the way you’ve clarified the main question!!
August 21st, 2007 at 7:50 am
[…] The Difference Between Being Frugal and Being Cheap by Carlon Haas […]
August 21st, 2007 at 12:50 pm
[…] The Difference Between Being Frugal and Being Cheap at Possess Less Exist More… this is a ongoing debate/struggle/interest of mine. […]
August 21st, 2007 at 3:15 pm
Great post! Frugal is a trait that I admire in people…and I hope to become so too….Cheap is a derogative term that I hope to avoid…However, people frequently call me cheap because I don’t go out to lunch every day or buy the latest trends…
August 21st, 2007 at 8:21 pm
Welcome SavingDiva,
Thank you for your comment. I’m glad you brought this up. If you haven’t done so, may I suggest reading my post about how the labels we use to define ourselves stunt out personal growth. People have called me cheap, tightwad, etc. etc. but once I chose to not label MYSELF that way, I felt much better and more confident about how I lived–enough to blog about it.
http://carlonhaas.com/how-the-labels-we-use-to-define-ourselves-stunt-our-personal-growth/
August 22nd, 2007 at 10:34 am
Good article, I think you can sometimes lose perspective in trying to save money.
August 22nd, 2007 at 2:00 pm
Great post clarifying the difference between frugal and cheap. I’d just like to add that a higher price is no guarantee of higher quality.
August 22nd, 2007 at 2:06 pm
[…] The Difference Between Being Frugal and Being Cheap by Carlon Haas. This question has been addressed many times but it is always interesting to see a new perspective. […]
August 22nd, 2007 at 5:00 pm
Re durability:
A knowledge of materials and the causes of wear & tear is also helpful.
Think about how you will use the object and what forces this will subject it to.
Spend some time learning the physics of stress and strain.
Find out why some materials become brittle as they age.
Why does cloth fray? Metal corrode? Wood crack?
Invariably, cheap things haven’t been designed to deal with these inevitable forces. Frugal, well-designed things have. A good design is well-adapted to the environment in which it is used.
Look for examples of things which have held up over time. Pay special attention to things which have endured even though they’ve received little maintenance. Can you see how their design succeeded where others failed?
August 22nd, 2007 at 9:01 pm
re: Tight Fisted Miser
You’re right about that. As a former marketer, I can tell you first-hand that many times products are sold at higher prices because the market allows it, as opposed to being of higher quality. That’s why I tend to look for brands that have a reputation for quality.
Great point.
August 22nd, 2007 at 9:06 pm
re: Corky
Thanks for adding that point. Knowing about the materials and how they hold up over time can be a real difference-maker.
August 24th, 2007 at 7:56 pm
[…] The Difference Between Being Frugal And Being Cheap by Carlon Haas […]