There’s a slight difference between being frugal and cheap. You are frugal if you realize that paying more does not mean added benefit. Cheap people won’t be willing to pay high price irrespective of the benefit.
Celebrity investor Warren Buffet is known to be frugal. Your friend, who rose to fame by purchasing things at garage sales, is likely a cheap person. Here are a few tips to save money without being cheap.
Cheap people only look at the price value. They believe that the best way to achieve profit is to pay less, but they fail to consider other factors. Frugal people know that sometimes they have to pay up. A quality shampoo may cost more, but the nourishment and protective factors may help someone with hair loss issues. Paying extra bucks for a pair of shoes from a branded store might result in fewer signs of wear and longer life.
Warren Buffett believes that giving your kids too much money isn’t a good idea. He has also promised most of his assets to the Bill and Melinda Gates Foundation rather than giving them to his children.
Cheap people see their money only as theirs and might want to cling to it for the rest of their life. Their children may backbite about them as someone who rarely gives a gift or provide financial help to others. This could make a dent in the relationship with the parent. Cheap people always put money above others.
There indeed is no correct way to differentiate cheap and frugal people. Some cheap people are likeable, some frugal people are not likeable. The real contrast comes from understanding benefits and value.