When it comes to spending money, there are two ways to do it: the frugal way and the cheap way. The frugal way is about getting the most value for your money, while the cheap way is about getting the lowest price possible, no matter the cost.
If you want to be frugal but not cheap, there are a few things you can do.
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5 Tips to Be Frugal but Not Cheap
Below are five tips to be more frugal and less cheap.
Avoid buying excessively cheap gifts.
Although you may enjoy thrift store shopping and regifting, try not to do it in front of your friends and family. Even if you get a great gift, don’t let them know how little you spent on it or whether you received it for free. Although you don’t need to spend much money, people frequently find this excessively inexpensive method of giving disrespectful and may conclude that you don’t care about them.
So you might choose to thrift when you buy something for yourself, but not when you buy something for someone else since they might think you’re cheap and feel slighted. But, of course, if you are confident that they will appreciate it, go ahead and do it.
Purchase dependable goods.
You can get away with purchasing a budget brand for your clothing and shoes, but you should choose quality over price for things like home appliances.
For instance, an appliance that requires frequent repairs may drain your savings.
It is preferable to get high-quality appliances that require little ongoing maintenance. Additionally, many modern appliances come equipped with energy-saving features that might reduce your power bill.
When dealing with major objects like appliances, it is advisable to take the long view; even if you initially have to spend a lot of money, you will usually save money in the long run.
Don’t skimp on the price.
It’s fantastic to save money, so feel free to recommend a cost-free or inexpensive activity to your pals, but don’t fight over the price after the choice has been made. Pay your fair share and revel instead! The timing is not suitable to be stingy and finicky.
Tip properly in restaurants.
Even if you want to save money by eating outside, you don’t want to come off as impoverished. Less food is better, but tip well still—the hard work of waiters who frequently rely on gratuities to make ends meet.
Additionally, you’ll probably receive better service and avoid jeopardizing your retirement by giving a little extra money to the people who work hard for you so they may enjoy themselves. Before you cut corners on the tip, alter your other spending patterns.
Keep your spending and savings in check.
Finding a balance between being thrifty and long-term financial savings is crucial. So keep an eye on your money and keep to a sensible spending plan, but don’t forbid yourself from treating yourself to comfort and pleasure.
Is being frugal different than being cheap?
The line between being frugal and being cheap is a clear one. Frugality is about making the most of your resources while still living a comfortable life. Cheapness is all about saving money at any cost, even if it means you have to live in poverty or go without things you need.
Being frugal means, you are smart with your money. You may have a tight budget, but you find ways to make the most of your income. For example, you may clip coupons, shop sales, and make your own meals. You live within your means and are not afraid to spend money on important things.
On the other hand, being cheap often means you are penny-wise and pound-foolish. You may refuse to spend money on anything unless it is a bargain.
How can I live as cheap as possible?
- Living cheaply is possible if you’re willing to make some sacrifices. Here are a few tips:
- Cut back on your entertainment expenses. Instead of going out to eat or to the movies, stay in and cook dinner or watch a movie at home.
- Find free activities to do in your community. Go for walks, visit the library, take up a hobby, etc.
- Shop for the best deals on groceries, utilities, and other household items.
- Consider renting out a room in your house to help cover your housing costs.
- Make your own cleaning products and household supplies whenever possible.
- Drive less and take public transportation when possible. This can save you money on gas and car repairs/maintenance costs.