Frugal vs. Cheap: A Simple Balance?

When it comes to any discussions on being frugal vs cheap, it seems that there can be misunderstandings that these 2 things are the same. I have been on both sides of this coin and I must say, they are not the same thing. I have gone from a compulsive shopper, to a cheapskate, to a more balanced frugalite (I know, that’s not a word). A shift from a cheap to a frugal mindset has been a significant part of my journey towards simpler living. In this blog post, lets dive into the differences between being frugal and being cheap, providing some real-life examples along the way.

Defining Frugal and Cheap

Both frugal and cheap people aim to save money, but their approaches differ. A cheap person typically opts for the least expensive item, often sacrificing quality. By contrast, a frugal person seeks the best value for their money. They prioritise purchases that are important to them and typically choose high-quality items that offer longer use and greater utility. In essence, while a cheap approach may avoid spending on things that make life enjoyable, frugality focuses on prioritising spending on what matters most.

Being Frugal

Frugality offers numerous benefits that can significantly enhance your lifestyle:

1. Prioritise Spending on What Truly Matters to You: Rather than making impulsive purchases, make deliberate decisions about your expenses. This approach not only saves money but also ensures you derive more value and satisfaction from your purchases.
2. Appreciation for What You Own: Choosing to purchase fewer, higher-quality items typically results in better care and appreciation for your belongings, leading to a more profound sense of satisfaction.
3. Substantial Savings: These can be allocated towards other financial objectives, such as repaying debt, saving for retirement, or funding a dream vacation.
4. More Sustainable Living: Choosing to buy fewer items and investing in durable, high-quality products can help reduce waste and overconsumption.
5. Less Frequent Replacement of Items: saving you time and effort in the long term (as well as money).

In essence, frugality is more than just saving money. It’s about making thoughtful decisions that align with your values, leading to a more fulfilling and meaningful life.

Being Cheap

Being cheap, while it may appear to be saving you money in the short term, could lead to long-term costs. Here are some possible downsides to being cheap:

1. Compromised Quality: Cheap items tend to be of lower quality and may not last as long. This could lead to more frequent replacement costs and, over time, you may end up spending more than if you had invested in a higher-quality item initially.
2. Missed Experiences and Opportunities: Being cheap might mean missing out on experiences or opportunities that require some spending. These could be things like social outings, travel experiences, or educational opportunities, which could enrich your life and create lasting memories.
3. Negative Impact on Relationships: If you’re always trying to cut costs, it could strain relationships. For instance, always avoiding your turn to pay the bill, giving cheap gifts, or compromising on quality time spent with loved ones might lead to misunderstandings or conflicts.
4. Less Satisfaction: Cheap items may not provide the same level of satisfaction and joy that higher-quality items can provide. This could be due to their shorter lifespan, lower performance, or simply not meeting your needs as well as a better-quality item would.

In the frugal vs cheap debate, it’s clear that while both aim to save money, frugality achieves this in a more sustainable and satisfying way. By focusing on value rather than cost, frugality enables us to make purchases that enrich our lives, last longer, and ultimately, can lead to greater financial and personal satisfaction.

Moving From Cheap to Frugal

It’s apparent that frugality is more beneficial than being cheap. When we began our journey towards simpler living, we were initially inclined to be cheap. We were so driven to save money at any cost that we overlooked the downsides. As a result, I didn’t value my possessions because they were inexpensive and replaceable. For instance, if a cheap top I bought got stained or torn, I would simply discard it. Now, however, I wait to buy something I truly love, knowing it will last, and I prioritise repairing items before considering replacement.

Take grocery shopping as another example. In my earlier days, I considered grocery delivery a waste of money. I would wait for our only car to be available, drive to the cheapest shop, and often had to visit multiple shops to complete my shopping list. This was stressful and made it hard to stick to our budget. But with a shift towards frugality, I’ve realised the value of paying a small fee for grocery delivery. This service has reduced stress, helped us stick to our budget, and allowed us to manage our monthly expenses effectively.

Transitioning to a frugal mindset has enabled us to buy the things we truly need and want. We quickly saw the benefits as we didn’t need to replace items as often and were able to save money.

At first, changing this mindset can seem intimidating. It may feel strange to spend a considerable amount on a single item. But as you embrace frugality, it starts to make perfect sense. It’s about making thoughtful purchases that add genuine value to your life, aligning with a simpler living mindset. Frugality does not mean never spending money. It means spending money wisely on things that truly matter to you. It’s not about being stingy; it’s about being smart.

Does buying better quality items mean I have to spend a fortune? No, not to me, but it depends on what you value in your life. Over the years, we may spend more on individual items, but we buy fewer items.

One method that has helped me live frugally is purchasing preloved items, including clothes, shoes, furniture, and toys. This approach enables us to obtain high-quality items at a fraction of their original cost. For example, we recently bought a beautiful oak coffee table for £60, which is still available new for £500. Another advantage of buying preloved items is that you can often resell them at the price you bought them.

Frugality doesn’t always mean buying higher quality items. It’s about spending money on things you value. The decision to buy is influenced by whether the additional cost is justified. Even inexpensive items can last if properly maintained. Ultimately, we purchase items that we value, which is subjective. I wouldn’t pay £1000’s for a laptop because I don’t see the value in that, but someone else might.

Finding Your Balance

Life doesn’t operate on a one-size-fits-all basis. We must discover what works for us, and this can change depending on our current circumstances. The balance we find will be unique to us, as none of us have unlimited resources and must live within our means. In light of the current cost of living crisis, it’s crucial to be mindful of our spending. Adopting a frugal mindset allows us to maximise our money’s potential, attain better value from our purchases, and lead a less cluttered, more fulfilling life.

Whenever we choose to spend money on one thing, we’re effectively choosing not to spend it on something else or to save it. Life is about balance—we initially adopted a frugal lifestyle to pay off debts, then to save for a house, and now to enable me to stay at home with our daughter. It is by adopting a frugal lifestyle that has made this possible, we only purchase items that we need or want that will be used considerably.

While we’re not cheap, we sometimes opt for the cheapest option if it’s the best choice at the time. We’ve experienced both cheap and frugal mindsets, so we’re cautious not to fall back into the cheap practice of spending excessive time hunting for deals. When deciding to buy something, we’ll conduct a brief search for discount codes. If we find one, great; if not, we proceed with the purchase. It’s important to consider the trade-off between the time spent to save a few pounds and the actual savings. Indeed, every penny adds up, but we must ask ourselves if it’s worth scrolling the internet for an hour only to save £1.

Some Examples of How We Are Frugal (real life)

• Shoes: I would happily pay £100 for a good pair of shoes that offer comfort, are suitable for the weather, and look nice. I wouldn’t buy multiple pairs; instead, I focus on quality over quantity. These shoes are worn frequently over several years, making the cost per wear quite reasonable. In contrast, I’ve previously purchased cheaper shoes that didn’t last a day. I’ve also bought high heels that, despite being 50% off and looking pretty on the shelf, were too uncomfortable to wear and hence, never used. Therefore, while the initial cost might seem higher, investing in good-quality shoes that I actually use offers better value in the long run.
• Classic Clothing: I would happily pay more for a quality, classic piece of clothing, knowing that it will last through wear after wear. It won’t become dated, unlike fast fashion which will seem out of style in a matter of months.
• Kitchen Equipment: I have chosen to invest more in kitchen items that I frequently use, given the amount of cooking I do. I believe it’s important to have good quality kitchen items as they not only enhance the cooking process but also last longer. In the long run, this means fewer replacements, leading to cost savings, and a more satisfying cooking experience.
• Pens: This may seem a bit random, but I am willing to pay more for a pen that I like to use. I enjoy using pens, but I don’t like smudgy mistakes. Therefore, I use a Pilot Frixion pen. They cost more, but I enjoy using them. I have wasted money on cheap pens that bleed in my bag, lose their lids, or smudge the page. I don’t buy those anymore because I don’t value them.
• Convertible Travel Backpack (Osprey): I have paid more for a quality piece of luggage. It cost more upfront, but I’ve had it for years. It’s been used on many travels, converts from wheels to a backpack for use in various terrains, and is carry-on size. Not only is it comfortable and practical, it has also saved money on baggage fees. Plus, it comes with a lifetime guarantee!

Some Examples of How We Are Cheap

(In reality, these are just instances where the more expensive item doesn’t provide enough value to justify the purchase)

• Tech Upgrades: I don’t need fancy devices like phones, tablets, or laptops. I actually try to stay off my phone as much as possible). So these items will only be replaced when they no longer function. When they are replaced, it will be with a budget-friendly version.
• Luxury Skincare: I don’t spend money on luxury skincare. While I used to invest quite a bit in skincare, since adopted a more frugal lifestyle and don’t see the benefit in spending excessively. I might regret this decision as my skin ages, but for now, it works. After some research, I discovered that Aldi offers a great budget range. I’ve been using their products for a few years now and I find they suit my skin well.
• High End T.V.: While we do use our TV regularly, we wouldn’t necessarily see the advantage of a higher-end model. Therefore, we opt for a more budget-friendly option that still meets our needs. The focus is more on functionality and practicality rather than luxury features. This approach allows us to save money without compromising on the enjoyment and utility we get from the device.

I don’t know about you, but in our house, we don’t need fancy things. We’ve learned from our journey towards frugality and simpler living that it’s essential to buy once and buy what you genuinely want.

Adopting this approach can be challenging initially, but with time it becomes a way of living that we don’t have to think too much about. It’s about making mindful decisions that align with our values and priorities. As we’ve seen, people who live a simpler life tend to be more frugal as they prioritise all aspects of their lives accordingly. They understand the value of their resources and make the most out of them.

So, next time you’re about to make a purchase, pause for a moment. Think about whether it’s something you truly need or want, whether it offers real value for the price, and whether it will contribute positively to your life. If the answer is yes, then go for it. If not, you might want to reconsider. Always remember, being frugal is not about being stingy; it’s about being smart with your resources and living a life that aligns with your values.

What are some cheap purchases you regret, or frugal items you would recommend? Let me know in the comments 🤍