Friday, 15 Mar 2013

Cheap vs. Frugal: Is There a Difference

While some may view your spending as being cheap, you could just be practicing wise spending habits. In fact, the line between frugality and being cheap is far wider than many may realize. If you are a frugal consumer, it just means you are watching what is spent for the quality of the merchandise in order to find the best possible deal for what you’re getting in order to use your money more productively elsewhere. Cheap means that although they have the money to spend on whatever you wish, you would still rather not for some hording obsession.

1. Dining Out – Frugal spenders will find coupons or discounts in order to have a fine meal at a fine restaurant with a date or spouse. He or she may not necessarily have the money to do so without these discounts. They are still able to provide a fine dining experience without the worry of covering the entire dollar amount.

Cheap consumers will take a date to McDonald’s even if they do have the money for a lavish dining experience. Why waste the money on an expensive meal when one can get fed at a burger joint for less? Although it may be cute to some, this experience is only the tip of a very large iceberg.

2. Bulbs – A frugal shopper will sometimes understand the value of the LED light bulbs in terms of the future. As these bulbs provide more light while consuming less power, they will help save electricity. Bulbs powered by LEDs also tend to live far longer than standard bulbs which means less money to spend on replacements later on.

The cheap buyer will see that incandescent bulbs are one-tenth the price of LEDs. They live in the here-and-now and would rather not spend so much money on a simple light bulb regardless of what benefits can be wrought by them.

3. Birthdays – As coupons can be found for nearly any merchandise or service, planning a birthday can be cost effective while providing a gift the person wants. A frugal shopper will put consideration into the gift and try to make it as low costing as possible.

Everyone likes balloons, right? A cheap shopper will spend $1 for a bag of balloons for a birthday present although he or she may have an extra $20 in his or her pocket. As long as the present can cost as little as humanly possible, the cheap consumer is happy.

4. Clothing – Scissors and printers will produce as many coupons as possible for the frugal shopper who would like some decent clothing. Sometimes, the clearance isles can yield excellent results. Perhaps a visit to the local thrift store to find a nice suit could be beneficial for the frugal person.

Cheap buyers will haggle over the price of a $1 pair of used shoes at a yard sale. After all, that person isn’t going to use them anymore and is more likely going to throw the shoes away if they don’t sell. Why should he or she pay more than $0.10 for those pair of Nikes?

Those who are frugal have more of a meaning and purpose behind their spending. Most of the time, frugal consumers don’t have a lot of money to spend on merchandise so they find the best deal they can of the same item. A large portion of cheap consumers will have the money to spend on nearly anything they want, but feel they need to horde it for some unknown cause. Just because you purchase according to your budget so you can comfortably survive, doesn’t mean you are cheap.

Author Bio:

Ken Myers is the founder of  http://www.longhornleads.com/ & has learned over the years the importance of focusing on what the customer is looking for and literally serving it to them. He doesn’t try to create a need, instead he tries to satisfy the existing demand for information on products and services.


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