The big thing they have in common is both love to save money.
Here is where they are different:
- Frugal people assess the bigger picture and have the patience to cash in on simple savings strategies
- Cheap people are driven by saving money regardless of cost
- Frugal people are driven by maximizing total value, including the value of their time
- Cheap people use price as a bottom line
- Frugal people use value as a bottom line
I used to be cheap until I transformed my relationship with money.
Time is valuable.
If I have to spend 2 hours to save $100 on a flight or walk half an hour just to save $10 on parking.
Do you think it's worth it?
I’m sure we all have a similar story to share. 😉
Also, pay attention to signs that you have gone from frugal to being cheap.
- When you constantly skip or scrimp on important events because of the cost. If you turn down events and use money as an excuse over personal relationships, then you have some rethinking to do.
- When you start insulting and judging your friends’ spending habits. How other people spend or save money is none of your business unless it directly affects you or if you happen to be their financial coach. 😉
- You drive across town to save a buck or you would walk 20 minutes to save on parking.
- You are constantly replacing broken items because you value cheap over quality.
- You’re a sucker for sales.
- You buy from Costco and return it after using it. Saw the news on people returning Christmas trees after the fact? 😒
Christine Teh is a personal finance coach who lives in Silicon Valley and serve clients virtually. She also offers tax preparation and consulting services and LinkedIn coaching as well.
Schedule a complimentary chat now to see if her financial coaching services is right for you!