WalletRehab - Ways to save money

Growing up, I fell in love with a show called “The Frugal Gourmet.” Beingsomeone who couldn’t speak English, I just liked watching the soft-spoken balding man cook. Judging from the food’s appearance, I just knew the food was delicious. I just assumed that “frugal” meant “tasty.” It wasn’t until I was in high school and had to study for my SATs that I learned what frugal meant.

“Cheap” is a bad word. “Frugal isn’t.”

My personal definiton of “frugal” is “cheap, but in a good way.” A positive connotation to a normally negative word. But “cheap” in any of its incarnations means “low-quality,” and “a sacrifice in quality for a reduction in price.”

But “frugal” means something very different from “low-quality.” It is the efficient use of limited resources for maximum gain. Surely, your bank account is limited, and you certainly want to do more with it.

I know this because there are a lot more of the former than the latter.

So remember. Stop being cheap. Start being frugal.

Ramit at “I Will Teach You To Be Rich” also expounds about the differences between cheap and frugal.

Cheap people care about the cost of something.

Frugal people care about the value of something.

Cheap people try to get the lowest price on everything.

Frugal people try to get the lowest price on most things, but spend a lot on items they really care about.

Cheap people think short term. Frugal people think long term.