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What’s the difference between cheap and frugal? Some people use the terms ‘cheap’ and ‘frugal’ interchangeably, but as we have learned in preparation of this episode, that is not the case.  These two words may seem to be similar, but in reality, they are miles apart!

 

Defining Cheap and Frugal

 

Cheap:

Someone who doesn’t spend money on himself or others. This person might be afraid to use money to have fun, or even to meet their needs. They ultimately want to accumulate as much as they can by being unwilling to spend money, and that would even be on necessities. (Bankrate)

Examples

  • Avoid the doctor so you don’t have to pay the copay
  • Neglecting to pay for the basic necessities in your life, such as seeing the dentist or hiring a repairman to fix a broken appliance.
  • Not doing proper maintenance on your car (if the cheap person has one)
  • There is a constant worry about money, even though there may be healthy savings…or VERY healthy savings. 
  • Taking advantage of others just to save a quick buck, like skipping out on a tip or always negotiating a price, even when it’s inappropriate to do so.
  • Spending hours upon hours clipping coupons just to save a few bucks

Frugal:

Someone who is economical in the way they spend money and resources. Being frugal, one could say that they are a living demonstration of wisdom. (Homegrown Hillary)

Examples

  • Choosing quality over quantity
  • Using the public library instead of buying books
  • Buying nicer foods and cooking it at home instead of going out to eat
  • Going to a thrift store and purchasing good quality used clothing, or purchasing brand new clothes that still have the tags on them
  • Using a budget to tell your dollars where to go…and following it!
  • Turning the thermostat down a few degrees and choosing to dress with one extra layer while indoors (Do not turn the thermostat way down or even off! This would be cheap!).
  • Spending the money to upgrade insulation to save money during the heating & cooling seasons. 
  • Buying foods in bulk and storing them properly for the days ahead.
  • Buying dent & ding foods
  • Saving for your desired purchase rather than financing it (delayed gratification).
  • Choosing to hold onto a car for many more years and do the maintenance and repairs instead of getting a new, or new to you, car every few years.

 

Whats The Key Difference Between Cheap and Frugal?

Cheapness prioritizes short term budgetary wins over long-term best options, while frugality maintains a long-term perspective.  You are choosing to “get it done” or “make it work right now” and you are not concerned about the longer term potential impact of the repair, maintenance and/or if the purchase will still work for you in 30, 60, 360 days and beyond.

Cheapness goes beyond purchases and maintenance, for choosing to be “cheap” can, and more often than not will, have a devastating impact on your relationships with immediate family, extended family, friends, and more.  To add another layer, the one that is cheap will more often than not, not follow biblical guidelines pertaining to giving and generosity to the church and to others in need.  And as we have shared many times on this podcast in the past, choosing to live this way could thwart the hand of blessing from the Lord in your life.

Some examples of these differences could be explained like this:

  • This could also look like not getting the education you need for your chosen career path because its too expensive, and letting it hold you back from reaching your career objectives. 
  • This could also look like putting a tarp over your roof instead of replacing the shingles, even when you have the means to fix your roof the right way. Sure, you save a few bucks by getting a tarp. But it’s only a short term solution that will cause you future stress. 

It is right to be cheap, rather than frugal, when you have to live to fight another day. The comment about the roof and the tarp reminded me that there are literally people who cannot afford to hire a roofer to fix the roof. But they can afford to stop the immediate damage and put a tarp over the roof. At times, cheapness could be a stop-gap to get you by until you can make a truly frugal decision, and that could be a very good move as you gather knowledge and wisdom (remember last episode), so you can make the right and proper movement forward.

 

Why Does It Matter?

  • Both cheapness and frugality can become idols. With cheapness, we can make an idol out of the short term financial investment (or really, it is a bragging about the “potential savings”). We can make an idol out of frugality by ALWAYS choosing frugality instead of making a generous choice. By choosing frugality over investing into your family…into your relationships, we can be making an idol in these circumstances.
  • There is a fine line between ‘cheap’ and frugal. Cheap is buying the lowest quality products just because it’s the lowest price. Cheap is almost always foolish (unless it is a stop-gap measure to get to the right place/product/repair. Frugal is almost always wrapped with wisdom. 
  • But here’s the rub: Being cheap, for cheapness’ sake, is never the right answer. It is almost always right to be frugal. BUT, it’s never ALWAYS right to be frugal. Frugality is not next to Godliness.  Now I know that my frugal friends are going to bear arms at this statement. They are going to want to attack me because of what was just said and will not want to share this episode with friends and family that are in their line of thinking. Frugality is one application of wisdom, but generosity and sacrificial giving can be also. 

 

Stewardship Application

Stop being so cheap. We encourage being frugal! But, we acknowledged that the line between cheap and frugal is often blurred. Learn from yourself where that “line” is for you and be intentionally aware of it especially when it comes to investing in family and other relationships. People often waiver from side to side. The frugal person can slip into the cheap mindset easily, but the cheap-minded person will rarely go into a ‘frugal mindset, but they should!  Learn of yourself and seek the Lord in this.

For some of our listeners who default to frugality, don’t allow your frugality to cause you to miss the most important things in your life; the people and the memories. Both cheapness and frugality can be used as an excuse to not be generous towards the Church and/or those in need around us. True and biblical frugality recognizes that giving to the Lord is an investment into eternity that will yield great rewards today, tomorrow, and for all of eternity!

The frugal mindset can function very well in the Biblical Financial Priority framework that we teach and preach on this podcast, and in our sister ministry, Life Institute’s Stewardship Lifestyle Seminar, but the cheap mindset cannot work in our framework. 

The cheap mindset will only allot their resources to the ‘save’ category of their budget, but the frugal person can and would wisely allot the proper resources to the proper categories that will effectively provide and protect themselves and their family if married, and will also make sure that memories and relationship are “baked into” their budgeting and expenditures for the month and the year. 

In the parable of the wise steward, I believe that Jesus also illustrated the distinction between cheapness and frugality. A frugal farmer invested wisely, ensuring that his resources were used efficiently for a bountiful harvest. Conversely, a cheap farmer would cut corners, neglecting investments, leading to a meager yield. In Proverbs 23:4 I can see an element there that would warn against pursuing wealth through cheapness and miserliness, which would emphasize the value of using wisdom and diligent work. And as we have already mentioned, being frugal does align with prudent stewardship, thus prioritizing responsible resource oversight and management, as exemplified in Proverbs 27:23-24. 

Proper and Biblical money management is not merely about cost-cutting but more so cultivating a mindset rooted in wise and purposeful use of resources, which would reflects God’s intention for faithful stewardship of the resources that HE has put into your care during your journey this side of heaven.

 

Next Steps

 

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