Being Frugal is Not Being Cheap

Being frugal is different than being cheap. A frugal person knows where every penny of their money goes and watches what they spend. A cheap person doesn’t spend any money and depends on others to supply them with any form of entertainment they receive. This isn’t the exact definition but it gives you a clue as to the difference between the two.

Frugality is admirable in a person. Being frugal means you compare prices of items before making a purchase and get the best deal you can possibly get. For instance if you are faced with buying two cans of asparagus at the grocery, you would compare ingredients first. After finding that they contain the exact same ingredients, you notice that the cheaper one has more nutrients than the higher priced one and is lower in sodium and fat. Choosing the higher priced one simply because it is a name brand would be wasting your money so you choose the lower priced one.

Another form of frugality would be to have a party at home instead of going out to party. Inviting friends over to celebrate a birthday or anniversary is a cheaper form of entertainment than meeting at a restaurant or lounge. As you invite friends, give them the opportunity to bring a dish or some drinks. This not only is cheaper for you but for your guests as well. Using discounts when you do go out is another way of saving money.

Some major cities design coupon books that can be purchased by citizens. These books have coupons from numerous businesses in the area that gives the bearer great discounts when patronizing their business. Clipping coupons for the grocery can save you 10% - 30% on your food expenses, enabling you to save for investments. Banking work related bonuses for future investments is a good way of saving. You would not ordinarily have that bonus, so why not put it where it can do the most good, in the bank or in investments.

Anyone can be frugal without being cheap. Some people may think that being frugal is the same as being cheap but as you can see, they are completely different. When you go out with a cheap person, they will want you to pay your way and theirs where a frugal person will use coupons and discounts to fund an outing, saving money to invest into their future.