How to Be Frugal Without Being Cheap

The difference between being frugal and cheap is significant. Typically, a cheap person only cares about the cost of something, whereas a frugal person cares about the value of something. Therefore, a frugal person understands that spending a bit more money on a high quality item can actually save you money in the long run. Frugal people will also never look to save money at the expense of others or basic life necessities. In order to be frugal without being cheap, you should cut costs, and spend money on smart purchases, and create a financial plan.

Method 1

Method 1 of 3:

Cutting Costs without Being Cheap

1
Search online for coupons and special deals. The easiest way to purchase an item without paying full price is by looking for a deal. In addition to getting coupons within local flyers or papers, dozens of websites are dedicated to providing coupon offers that can be used both online and in-store.^{[1]XResearch source}
- You can place coupons in a small pouch in your purse or wallet. This way you will always have them with you while you are out shopping.
- Save digital coupons on your smartphone so that they are easily accessible at the checkout.
2
Engage in free activities. You don't need to spend a lot of money in order to have fun or be happy. There are a number of fun and fulfilling activities that you can take part in without spending money. This will allow you to save money and lead a richer life. Try some of these inexpensive activities:^{[2]XResearch source}
- Take a walk through your neighbourhood or visit a national park.
- Connect with nature and take advantage of the seasons (i.e. go ice skating or snow shoeing in the winter or swimming in the summer).
- Build a blanket fort with your children.
- Spend the day appreciating art in a local museum.
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3
Don't save money at the expense of others. Both frugal and cheap people will use coupons to save money. However, a cheap person might use a coupon at a restaurant and then not tip on the total cost of the bill. You should never try and save money at the expense of others.^{[3]XResearch source}
- Instead, you could order a water and use the money you saved by not getting a drink to adequately tip the server.^{[4]XResearch source}
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Method 2

Method 2 of 3:

Making Smart Purchases

The difference between being cheap and frugal is that a frugal person knows that purchasing a quality product can save money in the long run. For example, purchasing energy efficient light bulbs will cost more money upfront, but they will last much longer and will cut costs on your electricity bill.^{[5]XResearch source}
2
Wait for expensive items to go on sale. Most consumer items will go on sale at some point during the year. A frugal person will save money by waiting for more expensive and high quality items to go on sale, rather than just purchasing the cheapest item available. This is a smarter way to shop because you are prioritizing both quality and cost.^{[6]XResearch source}
- Essentially, by waiting for items to go on sale, a frugal person will get a high quality item at a lower price.
3
Spend money on your health. Cheap people will often avoid spending money even on the basic necessities of life. For example, cheap people may avoid visiting the doctor for regular checkups as a way to cut costs. Alternatively, frugal people will spend money on medical treatments, but will look to get the best price.^{[7]XResearch source}
- For example, a frugal person may purchase private health insurance to help cover medical costs. This will save them money over their lifetime.
Some cheap people will skip meals in order to cut costs. A frugal person; however, will collect coupons or only purchase food items that are on sale. Frugal people will rarely skip out on life necessities as a way to save money.^{[8]XResearch source}
5
Give gifts to family and friends. Frugal people will always give meaningful gifts to friends and family members, regardless of the cost. A cheap person, on the other hand, will give an item based solely on the cost. You don’t need to spend a tremendous amount of money in order to give something meaningful.^{[9]XResearch source}
- If you are a painter or chef, create a special painting or exquisite meal to give to someone you love as a gift. Most people would treasure a gift from the heart more than one from the wallet.
- You can also ask other friends or family members to chip in and purchase a more expensive gift for your loved ones. This is a great way to save money without being cheap.
- Alternatively, you can add an expensive gift to your budget and save up for that special item.
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Method 3

Method 3 of 3:

Creating a Financial Plan

1
Create a budget. Frugal people will track their expenses so that they know where their money is going. Map out your monthly expenses so you know what to expect as well as how to prepare for financial emergencies. For example, create a spreadsheet that tracks your monthly expenses. This will give you an idea of where you spend your money each month. By doing this, you may find some areas where you can cut back on costs and lead a more frugal lifestyle.^{[10]XResearch source}
- Creating a monthly budget will help to ensure that you always have money available for necessities, such as housing, health care, and food.
2
Put money into emergency savings. Determine the amount of money you can put away each month and then don't spend that money. This will allow you to accumulate some money for unplanned expenses. Consider a high interest account to hold your cash. You will still have limited access to the money, but will most likely receive a better rate of return than a typical savings or checking account.
- Also, don't forget to replenish used funds so you will always have money in case of an emergency.
In order to live frugally, you should create a financial plan and set financial goals. For example, do you want to pay off your mortgage, save up to buy a car, or save money for retirement? Setting financial goals will allow you to save money and still enjoy life. Examine what you hope to achieve financially so you can design a way to reach those goals.^{[11]XResearch source}
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Question
As a kid, how do I avoid seeming cheap?
Community Answer
As a kid, you probably do not have access to much money, however, that doesn't mean you have to be cheap. For example, you can give friends and family members homemade and meaningful gifts. These are not considered "cheap" presents. If you don't have enough money to go to the movies with your friends, you should just pass on the activity. This is better than paying for your ticket and then eating your friends popcorn without chipping in.
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Tips

Reconsider diverting from your original budget if you get a pay increase. Continue to live frugally, but increase the amount of money you save. This way you’ll have a more comfortable cushion and will save faster for retirement.
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Warnings

If your spending habits clash with receiving proper healthcare or interferes with suitable living standards, reconsider your thrifty approach and revise your budget. Any time your behaviour interferes with basic human needs you could be trending toward acting cheap.
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