Image Credits: Tax Credits (TaxCredits.net) via Flickr with CC License
Frugality and Cheapness are seemingly the same but are entirely different personas.
DEFINITION
According to freedictionary.com frugality is costing little why cheapness is being stingy. In order to analyze these two terms better, here is a concise list:
FRUGALITY
a. Taking advantage of great deals, promotions, or sales while planning for purchases.
b. Delaying gratification and pleasure to make huge purchases or decisions.
c. Does not obsess over brands.
d. Does not sacrifice the quality of the object because solely of the price.
CHEAPNESS
a. Being cheap affects the quality of life as well as everyday interactions.
b. Basic needs are of lesser quality than the norm.
c. Does not binge shop when one has money.
d. Will sacrifice the quality of the object just to by the cheapest one.
Simply, when you are willing to wait for the promotions on Singapore Airlines in order to get the best deal and good quality of flight then, you are frugal. But if you are refusing to spend more than S$150 on a ticket even when it is not feasible then, you are cheap.
TWO PRIMARY DIFFERENCES
There are two observable primary differences between frugality and cheapness. Namely:
1. FRUGAL PEOPLE MAXIMIZE THE WORTH OF THEIR MONEY AND TIME; CHEAP PEOPLE MAXIMIZE SAVING MONEY REGARDLESS OF THE COST
For instance, your group of friends decided to spend the weekend at Bali.
A frugal person will use various money saving strategies in order to build up a fund for future huge purchases or decisions. He or she may opt for in-house water at restaurants, packing lunch for work, and limiting buying new clothing in order to save up for a weekend at Bali. While, a cheap person will skip the trip all together until someone pays for his or her travel.
2. FRUGAL PEOPLE USE VALUE WHILE CHEAP PEOPLE USE PRICE
Say you are grocery shopping.
A frugal person will use accumulated coupons and purchase items that are only on his or her shopping list. On the other hand, a cheap person will highly decline to spend more than S$90 on a week’s groceries even though it is not sufficient for the whole family.
Image Credits: Paul Swee via Flickr Attribution-NoDerivs
With all this in mind, you can now ask yourself: “Do I want to be consistently frugal or just plain cheap?”
