Is being cheap the same as being frugal?

A very interesting post from Ramit on iwillteachyoutoberich.com.

Is being cheap the same as being frugal?

Ramit points out:

Cheap people care about the cost of something.

Frugal people care about the value of something.

There is that old saying about people who know the "cost of everything and the value of nothing". I think the real difference is that frugal / thrifty people know what they value and cost it accordingly. Cheap people do not value anything and just try to save money for the sake of it. Thriftiness is life affirming. Cheapness is not.

So, figure out what you value and work on your finances so that they complement your values. This is thriftiness. As Gandhi said, "As long as you derive inner help and comfort from anything, you should keep it". A cheap person would not spend money even on something that brings inner help and comfort. 

A thrifty person will 🙂


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