The important distinction between frugal vs cheap is that frugality is about assessing the long-term picture, maximising value at a lower cost and prioritising expenditure to have more time for the things you really care about. Being cheap is simply focusing on price as the bottom line and cutting costs.
To summarize, being cheap is about spending less or not spending anything; and being frugal is about prioritizing your spending so that you can have more of the things you really value. Those who are cheap can often be afraid to spend their money.
A stingy person is mean with money. A cheap person is tight with money. A frugal person is sensible with money. A thrifty person is resourceful with money.
Frugality is the quality of being frugal, sparing, thrifty, prudent, or economical in the consumption of resources such as food, time or money, and avoiding waste, lavishness or extravagance. James Gillray's satirical print Temperance Enjoying a Frugal Meal.
My Journey from Cheap to Frugal and How to Tell the Difference
Is a frugal person cheap?
The primary distinction between being cheap vs frugal is the motivation and goal underlying the desire to conserve money. Frugal people are concerned with getting the most bang for their buck, but cheap people are just concerned with the bottom line and ignore quality and other variables.
Defenders (ISFJ) (69%) were the most likely personality type to identify as frugal, followed closely by their Thinking-type counterparts, the Logisticians (ISTJ) (67%).
Though it may seem counterintuitive, wealthy people often practice a frugal lifestyle as they only spend their money when they see that money's worth. In other words, they don't just throw their money around, but rather make it work for them by forming healthy habits.
Generally speaking, people don't like to lose money, which makes it difficult for some people to spend it. This follows a psychological concept called Loss Aversion, which means that people would rather avoid loss than gain an equivalent amount. Simply put, people would rather not lose $5 than find $5.
They refuse to live paycheck to paycheck, and always have the big picture in mind when making decisions. They tend to have a strong work ethic and are willing to put in effort in the earlier years of their life, so as to enjoy greater financial freedom down the road.
A person being cheap might go out of their way to avoid spending money, even if it inconveniences others—like not tipping appropriately or expecting friends to always cover the bill.
Being cheap can involve feelings of deprivation and insecurity, while being frugal can indicate being wise with money management. Extreme stinginess, prioritizing personal gain over others' losses, often harms relationships.
For example, think about the words frugal and miserly. Both denote tending to save money, but frugal has a more positive connotation and suggests a person is careful with money, while miserly has a more negative connotation and suggests a person is cheap or stingy.
Thrifty, spartan, and prudent are synonyms for frugal, a word that often has positive connotations when used to describe a person who lives a simple life.
ESFJ (the caregiver) are very warm, compassionate, and helpful people. They are often willing to go the extra mile for others. Other personality types like ISFJ, INFJ, ENFJ, ENFP, and ISFP are also loyal, kind, and gentle souls, and personalities to have as friends, leaders, and family.
Believe it or not, living frugally can actually make you happier than living lavishly. Living a frugal lifestyle isn't necessarily about pinching pennies and denying yourself things you want. It's about making your life easier and worrying less about money.
Some people are frugal because they're too scared to be anything else. The fear of spending money, known as chrometophobia, is tied to OCD and other compulsive disorders.
Frugality is about spending intentionally — focusing on value and making thoughtful choices. Cheapness prioritizes saving at all costs, often compromising quality or relationships. For example, frugal people might use budgeting apps to track spending and find savings while enjoying meaningful experiences.
Yes, living below your means is a solid step one. But if your entire plan is to never want anything, never spend, and never invest , then you've just building a very bland, very limited life. Frugal people don't always become wealthy. They just become excellent at tolerating scarcity.
I don't think it's a bad quality, at all. Unless, of course, it affects the lives of those around you negatively (I can't say I am 100% innocent of this.) Some people use the term “cheap” as an insult to describe frugal individuals. It's a judgement call on how someone spends their money.
Set a budget and save for an item, even if it is something that seems extravagant, like designer jeans or a new fancy blender. You'll enjoy your purchase even more if you know you can truly afford it. Comparison shop for higher-priced items.
