FRUGAL vs. CHEAP: WHAT’S THE DIFFERENCE?

When it comes to managing money wisely, being frugal is often praised – but being cheap? Not so much.

Although they may seem similar at first glance, frugal and cheap are two different approaches to spending. Understanding the difference can help you make smarter financial decisions without sacrificing quality, relationship, or peace of mind.

Let’s break it down!

What Does It Mean to Be Frugal?

Being frugal means being intentional and thoughtful about how you spend your money. It’s about maximizing value, not just minimizing cost.

A frugal person:

• Looks for discounts, but still buys quality items.

• Invest in long-term solutions rather than quick fixes.

• Chooses to spend money on what truly matters to them – and cuts out what doesn’t.

Example:

A frugal shopper might skip eating out every day but happily spends money on a good quality blender to make smoothies at home – because it saves money and supports their healthy lifestyle.

What Does It Mean to Be Cheap?

Being cheap is focused solely on spending the least amount of money possible – even if it means sacrificing quality, comfort, or relationships.

A cheap person:

• Always chooses the lowest price, even if it means buying poor-quality products.

• Avoid tipping or contributing fairly in group settings.

• May delay or avoid necessary spending, causing bigger problems later.

Example:

A cheap person might buy the cheapest shoes they can find – and end up replacing them three times a year because they keep falling apart.

The key Difference: Mindset & Intent

Being frugal is about smart money management. Being cheap can sometimes cross into being inconsiderate or even self-sabotaging.

How to Be Frugal – Not Cheap

1. Know your values: Spend on what matters most to you (health, travel, family, education).

2. Do your research: Compare prices, read reviews, wait for sales – but don’t sacrifice quality just to save a buck.

3. Think long-term: Ask, “Will this save me money in the long run?”

4. Respect others: Don’t try to save money at someone else’s expense.

5. Be intentional: Every ringgit, rupiah, euro, or dollar you spend should reflect your goals.

Being frugal is a lifestyle that supports financial freedom, less stress, and intentional living. It’s not about being stingy – it’s about being smart.

So next time you hesitate before spending, ask yourself: “Am I being frugal… or just cheap?”

Addentum

It's time to act.
Click here to explore our premium business assistance: Our Premium Business Coaching Services

And remember:
When times get tough, you don’t just sit back—you pray, you rise, and you build something that adds real value.

Your idea holds the power to become something massive.
All it takes is one click to start: Business Formation

Danel Homméus AKA DaHo

Writer | Founder | Consultant | Entrepreneur l Philantropist