Experts: 4 Signs You’ve Shifted From Being Frugal to Being Cheap
You’re careful with how you spend your money. Certainly, no one would fault you for that. But is there such a thing as being too careful? When does respectable frugality cross the line into that disdainful realm of penny-pinching: being cheap?
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The dictionary defines “frugal” as “economical in use or expenditure; prudently saving or sparing; not wasteful”. Look up the definition of “cheap,” however, and you’re met with far less desirable characterization: “stingy” (ouch); “miserly” (egads!).
To find out where frugality ends and cheapness begins, GOBankingrates consulted several financial experts to identify the telltale signs of cheapness, and solve the debate among your friends and loved ones once and for all.
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You Make Extreme Sacrifices
“Being frugal is a great practice no matter your income or net worth because frugality means you’re smart and strategic about how you spend money and manage your resources,” said Lynnette Khalfani-Cox, author of “Bounce Back: The Ultimate Guide to Financial Resilience.” “By contrast, being cheap is more like being penny-wise and pound-foolish. Cheap individuals take shortcuts to save money in ways that wind up costing them more in the long run — financially or in terms of overall quality of life.
“Anytime you’re making extreme sacrifices, scrimping excessively to save money, or making choices that seem to help you financially but hurt you in other ways, then you’re ventured into the cheap category,” Khalfani-Cox said.
Case in point: Khalfani-Cox recalls offering advice to one self-described “ultimate cheapskate.”
“He wouldn’t even flush the toilet in his house except once a week — all to supposedly save money on his water bill,” she recalled. “That practice was driving other family members crazy, and it also impacted his ability to have dating relationships because he said the women he dated were turned off by this so-called money-saving move.”
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You’re a Burden on Others
According to Todd Stearn, Founder and CEO of The Money Manual, being frugal simply means finding ways to save money.
“This could mean shopping sales, thrift or garage sale shopping, using coupons, repairing or repurposing items you already own, or simply avoiding the urge to buy things you don’t need,” Stearn said.
“If no one would describe you as generous, and you’ve become a financial burden on friends and family, you’ve crossed the line from frugal to cheap. Letting loved ones treat you to a meal out for a birthday, a promotion, or even just because sometimes is fine, but you should try to return the favor at appropriate times. The same goes for letting others pay your way for movies, trips, and other outings,” he said.
Your Stuff Is Falling Apart
Wearing items out past their point of usability or safety is another red flag, Stearn warned.
“If you’re wearing clothes, shoes, and accessories that are falling apart rather than buying affordable thrift or clearance items to replace them, you’re probably cheap,” he said.
And that, he added, “can have a negative impact on how others see you and on how you see yourself. It can even become dangerous and cost you opportunities, like if you keep driving an unreliable vehicle because you’d rather save that money than spend it on a more reliable used vehicle.”
Your Main Concern Is Price
“The biggest difference between being frugal and cheap is how you determine the value of a purchase,” said consumer savings and budgeting expert Andrea Woroch. “Frugality focuses on value, quality and relevancy rather than just price. If you’re being cheap, that may mean you’re worried about spending money, while a frugal person is not as much concerned about spending money but rather what they are spending on and if it’s worth the cost.”
If you’re so concerned about spending that you’re not willing to pay a reasonable tip, or won’t spend on “things or services that would improve your quality of life,” Woroch warned that you’ve probably become cheap.
How To Shift Back to Frugality
Even the most miserly of characters can see the light and change their ways. Getting back into the frugal zone just means a bit of reprioritizing and healthy budgeting, our experts said.
“Shifting back to a frugal mindset is about recognizing that while there are trade-offs in life, you don’t have to engage in ‘cheap’ behaviors that are completely unnecessary or unsustainable,” Khalfani-Cox said. “Ask yourself: ‘What am I willing to let go of or cut back on without overhauling my entire lifestyle or putting my mental peace, relationships, happiness, and health at risk?'”
Woroch recommended reassessing your priorities to focus on what makes you happy.
“What is it that makes you happy, or what is it that you need to create the life that would make you happy?” Woroch said. “Spend on the things that can help you achieve this and rid yourself of any wasteful spending that doesn’t support these goals.”
She suggested rebalancing your budget to identify where you’re spending on bills and services you don’t need or use. Paying down credit card debt is another way to free up cash each month to spend more frugally.
“A great way to get a handle on your credit card debt is to use a balance transfer card which offers up to 21 months with no interest accruing, allowing you to pay down balances faster,” Woroch said.
To get more value out of the money you spend, Woroch also suggested thinking outside regular retail.
“You can find better quality items when you shop second-hand rather than buying cheaply made goods at a discount from low-end brands,” she said.
So fear not, careful spender: Budget for the things that matter, pick up the bill now and then, leave nice tips for good service, and no one will be giving you that cheapskate side-eye. And for everyone’s sake, flush the toilet.
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This article originally appeared on GOBankingRates.com: Experts: 4 Signs You’ve Shifted From Being Frugal to Being Cheap
