Saturday, March 3, 2012

"I was cheap before frugal" - Classic

I was reading a post recently debating about the differences of being cheap and frugal and it does strikes a resembility between the two. (Let's skip "spendthrift" for a moment because it is a huge gap that we all can easily identify).

Assuming you are buying over a pair of shoes which cost one at $100 and another at $40. Being "cheap" means that you will definitely choose the one with the lower cost. But what about being frugal? To me, the differences of being cheap and frugal are multiples, but are pretty simple at times. Just think about it like this. Frugal people are willing to spend money on quality products at a reasonable price. They are smart people because they know that the products they are buying will last them for at least some time, which minimizes the cost over the long run. Cheap people, on the other hand, are people who will go and find the cheapest item on the price tag. They have a mindset to buy products cheap and usually these people are the ones that buys the same product over and over again...simply because the products are "cheap".

I used to be a "spendthrift" when I first started working 4 years ago to being a "cheap" over the last few years to being "frugal" now. I used to own a branded watch, a pair of branded shoes and a couple of branded clothes when I started working. Whenever my salary was paid at the end of each month, I would go and spend it on items which I do not really need. Luckily for me, it lasted for just a year and from then since, I began to realize and transform dramatically to being "cheap". Being "cheap", emotions easily run through the veins everytime you had to make a decision about purchasing something. It is measured by the amount of pain threshold you experience when taking your money out of your own pockets. Again luckily for me, it lasted for only a few months before I finally realise the importance of being "frugal".

I am striking hard to work the difference between being cheap and frugal. I have a target to save a certain amount of money every month but I also know the importance to live my life in a healthy and happy manner.

8 comments:

  1. For shoes, don't be cheap. For clothing no harm being cheap. Why? A bad fall from lousy shoes can cause us medical fees many times the price of good pair of shoes.

    ReplyDelete
    Replies
    1. Hahaha Uncle 88, I used to buy those $30 shoes for work but it hurts my toes. Now i am using Hush Puppies shoes for work. It is very comfortable and it doesnt' makes me fall :)

      Delete
  2. Buying quality items has a higher chance of lasting longer. The key thing is buying quality "necessity". Cheers!!

    ReplyDelete
    Replies
    1. Hi Dave

      You are right. The key thing is buying quality "necessity". There are so many quality items but expensive too, which I will try to avoid :P

      *Btw, your pop-corn ideas and cash flow diagram looks terrific.

      Delete
  3. And I thought "cheap" is what others call us (don't treat buddies coffee and don't treat girls on dates), while "frugal" is what we say to justify ourselves ;)

    LOL!

    ReplyDelete
    Replies
    1. Hahahaaa...yes cheap is what people justify us and frugal is what we say to justify and defend ourselves. :P

      Delete
  4. Same for me when i was working. when we step into the working world, it's hard to control, u see ppl have, u also want to have. but after u buy it regret it.

    I am targeting an omega or rolex and goldchain when i work, but now the idea or so called wishlist has postphoned. like better use the money to buy some life savings insurance, or invest in stocks.

    back to basics-is it a necessity or luxury, buy only when u have the money and decide if we need it.

    from ur buddy-steve sq

    ReplyDelete
    Replies
    1. Steve: Thanks for your post. I hope we can limit our spending when we go shopping outside together...hahahaa

      Delete

UA-57154194-1