Cheap OR Frugal?

There is a difference between being cheap or being frugal. Cheap means using price as the only criteria for making purchases. Frugal means not spending more than you need to and knowing the price vs the cost of use.

A cheap person will invest a lot of time and energy in order to save a dollar or two, but the time and effort they spend may not be worth the money they save.

A frugal person saves money in a balanced way by considering the impacts of money saving ideas on other areas of their life. Saving money is good, as long as it is done in a balanced way so you can enjoy life and recognize the tradeoffs you are making.

This week’s podcast and the Compass Catholic blog point out the differences between cheap and frugal.