A lot of people think that being frugal is synonymous to being cheap but it is not. Frugality and cheapness however have some similarities but there are lots of differences between the two. Frugality and cheapness both talks about saving money but while one talks about saving money at the expense of others the other does not go with that idea. Cheap people are always looking out for means to defraud others or take advantage of them to save money. This is obviously not the case with frugality.
- Frugality looks for the appropriate saving strategies and takes advantage of them when they present themselves. A frugal person can save money in order to achieve a bigger goal whereas a cheap person will simply want to save money for everything without even having a reason for doing so.
- The main point of frugality is value. Cheapness is an opposite of this, it uses price as its yard stick rather than value. A frugal person looks out for value in his purchases and not price. He goes for products which will add value to him and at the same time save him cost. A cheap person does not care about value; all he cares about is to save money out of every deal or thing.
- Time is very important to the frugal person. Maximizing time as well as value is the sole goal of frugal people. However, cheap people do not consider value in their money saving adventure.
- The bottom line of cheapness is to spend less in virtually everything. However, this is not really the bottom line of frugality. A frugal person will prioritize his spending and of course spend less money on things that are less important but spend more money on what matters. A frugal person scales his spending on items depending on their level of importance. The more important an item, the more money he will spend on the item and vice versa.
- Cheap people are afraid of spending money, choosing rather than give away quality, time and even value in order to save money which is usually for a short term purposes. Frugality looks at the bigger picture. It evaluates the long term goal. As a matter of fact, while cheapness is about the short term picture, frugality is about the long term goal.
Needless to say, frugality pays off more than cheapness. Being cheap and being excessive are close twins and have lots of cons. Frugality however pays off. Most people who claim to be frugal are simply cheap and this is why they do not achieve the desired result in the end of the day. Frugality is a virtue that should be learned if you must achieve your money goals. Being a millionaire simply requires planning and frugality. It does not require cheapness. On a careful look at the lifestyle of self made millionaires and billionaires in the world today, you will find out one thing common with them and that is frugality.