Here’s a great article from Canada’s Yahoo Finance page, called “Call Me Frugal, Not Cheap” that I found via Twitter. It’s about the difference between being frugal and cheap. People who are frugal get a bad rap because we are viewed as cheap! But here’s my motto–I believe I picked it up from “The Frugal Millionaires”:
Frugal is smart. Cheap is dumb.
Here’s an excerpt of the article, written by Gail Johnson, but click on the link here or above to read the whole piece:
“Frugals focus on finding the best value for their money,” she (Natalie P. McNeal) says. “We love good-quality goods that make sense for our lifestyle. We take the long-term view of money. We don’t spend; we invest. Cheapies are concerned with the lowest price, which is often a short-term philosophy.”
Take that used Honda Accord she bought in 2005. She had a history report done on it and carefully checked for internal damage. It was just two years old when she bought it, and she’s since paid it off.
“If I were cheap, I could have bought a lower-cost or quality car that may have had a spotty maintenance record or shorter-life span,” she explains.
However, many frugal people tend to be cheap at times…myself included ;–)